Who is Driving Your Business – You or Your Competition?
Markets are under continuous evolvement due to technological advancement, price consciousness and new marketing tools that, when digitalized, reach for global markets offering consumer an ever-increasing choice of produce.
The downside is that increased competition and overcrowded markets also cause products and services to become increasingly commoditized and their profit margins severely strained. In many sectors monopolistic type of niche markets can be hard to come by. Segmentation can bring relief but often at the cost of a low market share.
While fighting for market shares we try to beat the competition by relying on technological advancement, low cost business models or e.g. digital strategies but may end up with empty hands if the buyer value of our offering looses out to competition.
Do we know what the buyers really want?
The solution may then be to break away from unhealthy competitive situations and become a market-creating company instead. To be able to do this our mind-sets need to change towards a genuinely pro-active and sustainable business thinking that understand true buyer values.
A market-creating company defines and sets their own unique competitive elements based on exceptional buyer values, strategic pricing and cost innovation. Such a market-creating business model would be based on unique value innovation while pursuing differentiation and low cost as strategic elements simultaneously.
With a growth strategy that rely on a market-creating approach (and understand hidden market requirements) we can avoid competitive traps and will reach out for uncontested larger markets, improved customer satisfaction, higher volumes, an early market acceptance and better profitability.
If successful, we are able to modify the strategic industrial profile and generate uncontested market space where competition is irrelevant for you.