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How to differentiate your business in a competitive landscape

How to differentiate your business in a competitive landscape

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Page 1: How to differentiate your business in a competitive landscape

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How to differentiate your business in a competitive

landscape

Page 2: How to differentiate your business in a competitive landscape

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Value = Price + Quality + Utility + Service

What is Value?

Page 3: How to differentiate your business in a competitive landscape

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● Does it do what we need it to do?

● What happens when we need help with it?

● Is it within our budget?

● Is it well made?

How We

Calculate Value in PracticeWhen we compare a Ferrari to a Lamborghini, we assess value in exactly the same way as we do when we compare a Ferrari to a Ford – we just prioritise different value parameters:

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Consider carefully before choosing price as your primary differentiator:

● Can you deliver the necessary quality?

● Will you be able to source the right suppliers over

the long term?

● Can you maintain sustainable profit margins?

Price as a Differentiator

Page 5: How to differentiate your business in a competitive landscape

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Turnover is for Vanity,

Profit is for Sanity

Beware: price differentiation is often an unsustainable strategy because you

devalue your product/service and engage in a race to the bottom.

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Focus on price differentiation -> Commoditisation -> Tight margins

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DIFFERENTIATE on quality and you’re more likely to turn customers into brand advocates.

Will your ideal customer pay a PREMIUM for added value?

WHAT DO YOU OFFER that’s better than your competitors (small and large)?

Quality as a Differentiator

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Utility as a DifferentiatorInnovation Adoption Curve

Where do your ideal customers sit on the curve? Are they

first in line for new products or are they late adopters?

Consider product development and marketing strategy

within this context to determine how you add value.

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If there’s already a clear price leader, quality

leader and innovation leader in your space –

deliver a better service.

Service as a Differentiator

Customer Experience Management (CXM) –

when 2 products cost the same, work the same

and perform the same, the company that makes

the customer the happiest wins the sale.

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Value = price + quality + utility + service

Consider how important each factor is to your ideal customer and manage operations, product development customer service accordingly.

Optimise All elements of Value to Differentiate

Your Business