It is fundamental to all businesses that understanding your markets and customers allows for the development of effective strategies. Strategies that, when implemented will enable you to develop your competitive advantage. Simply put your competitive advantage is built upon your ability to exploit what it is that you do better then anyone else. A Companies BASE STRATEGY forms the basic foundation upon which you plan and build your Competitive Advantage. Your Base Strategy represents your broad game plan and how you intend to succeed in your current business environment; how you plan to leverage your strengths vs. the competition, it also serves as a guideline for decision-making, resource allocation as well as new product and service development. Understanding what external and internal factors drive your Base Strategy will enable you to create your unique Strategy for success. To this end I have outlined several basic strategies which will help you better understand where you and your company fit, thereby enabling you to re evaluate your present base strategy and to more effectively understand your competitive advantage. Commodity-Driven Base Strategy Should be considered when your product or service is essentially the same as others on the market. To differentiate your product or service you could choose either pricing or value as a differentiating factor. This strategy requires close attention to cutting & controlling costs which maintaining high productivity. Technology-Driven Base Strategy This strategy places the emphasis on your ability to gain a temporary monopoly on a market thru the development of a technology or to compete in a market where superior technology provides a competitive advantage. Success of this strategy often is dependent upon the coordination of emerging technologies with breakthrough thinking. Quality-Driven Base Strategy This strategy focuses upon the assumption that your product or service is superior in quality to those of your competitors. Success with this strategy is dependent in part upon the ability to have systems in place to assure that your product or service continues to maintain superiority. This essentially means continuous improvement; constant and consistent monitoring, or production, development and execution. Service-Driven Base Strategy This strategy should be considered if you find yourself in a position of being unable to differentiate your products and services in terms of price, technology or quality. Your focus will be on the value-add benefits of doing business with you, with an emphasis on service, delivery, follow-up etc., Customer-Driven Base Strategy This strategy places a premium on going beyond meeting customer expectations; always exceeding customer expectations. It requires that you have an on-going effort to improve quality and service. This goal and success of this strategy lies in your willingness to exceed your customers expectations. Review these strategies; select a strategy that will enable you to effectively position your strengths and available resources in the best possible light. Your Base Strategy along with your vision and your willingness and desire to pursue that vision will lead to the success that you desire. Persistence pays! Remember the important thing is that you know where youre going; that you have a vision; and that you know what you ultimately want to accomplish. |
