Question: The ball is rolling with a big, new competitor. There”™s no stopping them ”” they”™re getting everything they want. We”™re already seeing a downward impact on our revenue and on customer price sensitivity. We”™ve checked with our peers and they”™re seeing the same things. This could be a game changer for our industry and we don”™t have the resources to play in this competitors”™ league. How do we deal with it?
Thoughts of the day: How do you defend and how do you grow are the same and yet different questions. Before going to war, do an inventory of what”™s in your war chest. Sometimes it”™s better to go around than it is to fight head on. Always be aware of market trends and customer options. Make sure your choices will lead to profits and future opportunities. Consider joining forces to strengthen your hand.
Always keep your eye on the future. What will your company be known for in five to 10 years? What will be the profile of your company”™s best customers? What products or services will you offer? Will that be enough to ensure the company continues to grow revenue and profit? Will your customers still be around in the future, or are they legacies that must be replaced to ensure future growth? Can you continue to attract the employee talent you need to stay competitive?
Profile your company”™s assets. How much money is set aside in reserve? What about strength of customer relationships? How many customers are true believers in your company and likely to support you through a fight or a transition? What is your company really good at? How many other products or services do you have? How many of your employees are willing to help see the company through a transition?
Look at how your company differentiates itself, historically and in the future. Why do your current best customers buy from you and not from the competition? What role do customer testimonials play in reinforcing the strengths of your offer versus the competition? Make and implement a plan to get the word out over the Internet. Make it all about your customers: what they want, what they need and how you can supply those needs better.
Document how much your company needs to change in the next five to 10 years, and get moving. Consider acquisitions to help you get started in a new market or offering. Look for something that your competitor doesn”™t offer that you can.
Make your company look unique because of how you talk about the company. Is your competitor innovative? Be constant and reliable. Is your competitor”™s price below yours? Offer exclusivity and add-on services at a bundled price. Is your competitor negotiating with top customers? Figure out if you can afford to compete and select the best customers; fight for those, and build a new set of customers by focusing on a group that your competitor is ignoring.
Make it someone”™s job to do market analysis, keep it going and report on findings at least annually. If you don”™t have the talent in your company to do that, hire someone on the outside to do it. Challenge your staff to think about who else they should be doing business with. Compare the options available to your market, and look for holes, or unserved needs, that your company can step into.
Look for options to join forces with your peers. Co-launching a new product or service might give you the resources needed to make a splash in a new market. Look to industry groups for assistance with research, dealing with legal issues and options for defending or expanding against major competitive threats. Whatever you do, don”™t sit and wait. Get moving, get active, take on the challenge to make the future for your company as good as or better than its past.
Looking for a good book? Try “Attacking the Crown Jewels, How to Protect Your Business Strategy Against Competitive Threats” by Phil Bookman.
Andi Gray is president of Strategy Leaders Inc., strategyleaders.com, a business-consulting firm that specializes in helping entrepreneurial firms grow. She can be reached by phone at 877-238-3535. Do you have a question for Andi? Send it via email to AskAndi@strategyleaders. Visit AskAndi.com for an entire library of Ask Andi articles.
