Competitive Business Strategies - Do you successfully distinguish yourself in the market?

To compete you need to be different...

Competing to become the lowest-cost provider in an industry or differentiating yourself from your competitors to drive business are the two fundamental options to an entrepreneur, business leader or CEO to drive a business forward.

Differentiated business strategies are usually the more preferred choice than the possible low-cost strategies available, even though businesses such as Poundland, Easyjet, IKEA and others have maximised the cost strategy. The risks from competition and smaller margins means that entering an industry with the objective to be the most cost effective needs thorough investigation and planning to understand how operational efficiencies can provide that leading edge. In the past Japanese car manufacturers have led the way in automation to demonstrate speed, cost-effectiveness and improved quality control to differentiate themselves in this space.

It is evident only one company can survive as a true low-cost provider in any one industry. Being the second, third or fourth lowest provider does not usually work as a successful business strategy.

Differentiation is ensuring your business or brand stand out by offering unique features, benefits, services. This means identifying the most important criteria used by purchasers and decision makers in your industry and then aligning your product or service in a manner that meets these criteria. It is no use replicating one of your competitors features… because they cannot be unique. This needs the approach of looking at the buyer’s mentality, issues, threats, culture, competition, weaknesses, etc. Offering highest-quality product, the best solution, an exclusive feature or tool can work if they are significantly different from your peers.

'A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.'
Henry Ford

If you are a coffee shop, a cleaning company or a software solution vendor you need to identifying something that can connect with your target audience.For example, everyone can sell coffee. But maybe offering an environment where business owners/entrepreneurs can network and work, an app to allow regular drinkers to pre-order their desired coffee mix to avoid the queue. There are lots of office cleaners, but how many will look to provide fresh cut flowers, brew the coffee and provide croissants for the first workers into the office. These are just simple examples on what could be done to differentiate oneself. All ideas to differentiate need to be assessed on the impact to the total customer base, the cost and possible third-party influences including regulations, etc.

The need to think out of the box is required, no business can succeed by being a ‘me too’. To successfully launch a business, compete in a marketplace, the need to be innovative in your marketing differentiation is critical.

Be imaginative, be creative, be alert. Differentiate.

Lateral Alliances offer professional and dependable consulting for all aspects of your company. From initiating and supporting marketing strategies, including PR, web design, graphic design, event management, social media, business development, recruitment, sale, right through to business and exit strategies, we have the skills and experience to support your business. We are a 'hands on' organisation, who prefer to get deeply involved in your business and challenges, not hide behind aimless discussions.

Insightful business thinking...