How to Beat Your Competition: Here are 4 Strategies of Competition.
In business, unfortunately, most of us have competition in our chosen industry. So that means that we must compete to obtain enough of the market share for our company to be viable.
But how do we do this? What strategies can we use to get an edge on our competition?
Here are the 4 ways that we can compete. And we need to win at one of them to be successful.
1. Low Cost
Low Cost can be defined in two ways;
Either we have the lowest costs to supply our product or service and therefore are well-positioned to do less work and still generate the profits we need to be viable. An example of this would be Southwest Airlines who have worked diligently to streamline the costs to provide air travel.
Our business model is to be the 'Low Cost' player in our industry. This means that our pricing model is to be the 'budget' supplier of a certain product or service. we sell at a lower price point but the volume that we sell still generates the profit levels that we need to be successful. An example of a 'budget' model would be Superstore or Walmart that build their business model on being the cheapest.
2. Most Innovative
Think Apple or Tesla
Companies like these are not concerned about being the cheapest. The are focuses on being the most innovative and creative and obtain market share by leading their industry.
3. Most Customer-Centric
These type of companies gain market share by being focused on the customer. Their strategy is on building relationships with their customers and thereby getting loyalty from their customers in return. Ritz-Carlson has used this model with great success. They track your preferences on each stay, log that information, and use it to make your next stay even more personal, and therefore more enjoyable. Are there other good hotel chains out there? Sure there is. But not many can compete with the level of attention that Ritz-Carlton devotes to their clientele.
This is far more than telling everyone that your product or service is better than everyone else's. Rather this strategy is focused on the 'doing' and the 'proving' that your company is superior in terms of quality. Consider a company like grocer Trader Joe's. They have a stringent qualification process to have an item listed in their stores so customers know that each and every product is of the highest quality. Do you pay for the quality? Absolutely. But Trader Joe's strategy is to only carry the highest quality products and focus on the consumer that makes their purchasing decisions based on one thing. Quality.
As you consider your strategy to obtain increased market share and gain and edge on your competitors, focus your resources on one of these 4 key strategies.
All the Best,
Chris Hall is a Senior Business Management Consultant that helps business owners and executives own and manage more profitable and successful companies.