Do you feel like you’re trying to be all things to everyone but getting nowhere?
As a business owner, you’ll never be successful if you try to do it all. You must focus on one strategy and make sure all decision-making is framed around that goal.
Michael Porter, a business strategist, states that a sustainable strategic position requires “trade-offs.” In other words, activities that are incompatible cannot be achieved at the same time. To compete in your industry, consider these three strategies.
1. Production Effectiveness.
This strategy, also known as operational excellence, is used to lead the industry in price and convenience. It’s great for big companies that benefit from economies of scale and can offer products at lower prices than their competition. To be successful, you must be lean and efficient in your production process.
2. Product Leadership.
Companies that use this strategy are constantly innovating and striving to produce state-of-the-art products and services. They must be faster than their competition in commercializing new ideas.
3. Customer Intimacy.
Companies that use this strategy try to understand their customers better than their competitors and adapt their offers to serve them best. It can be costly, but these companies will spend money upfront on building customer loyalty and increasing their lifetime value.
When you’re a business owner, it’s easy to get swamped with a million things to do. But if you’re not careful, you’ll find yourself trying to do it all and getting nowhere. To be competitive in your industry, focus on one strategy and ensure all decision-making is framed around achieving that goal. With a clear strategy and goals, you can boost consumer confidence and drive success for your business.
Do you have a clear differentiator for your business? Are you talking to your customer about what makes you different? Book a meeting today, and let’s talk about how we can help you show your potential clients what makes you special.