The Five Key Competitive Strategies - Dr. Ivan Misner®

A focused, or market-niche, strategy based on lower cost: concentrating on a narrow buyer segment and outcompeting rivals on the basis of lower ... 2Dec2010Afewweeksback,Iencouragedyoutoassessyourcompany’scompetitivepositionandfindoutwhetheryou’repositionedforsuccessorifyourcompetitivepositionisindireneedofimprovement. Ifyourpositionhappenstoneedsomehelp,readon...Yourcompetitivestrategyconsistsoftheapproachesandinitiativesyoutaketoattractcustomers,withstandcompetitivepressures,andstrengthenyourmarketposition. AccordingtoArthurThompsonandA.J.StricklandinStrategicManagement:ConceptsandCases,therearefivecompetitivestrategiesyoushouldconsider:Alow-costleaderstrategy:strivingtobetheoveralllow-costproviderofaproductorservicethatappealstoabroadrangeofcustomers(acoupleofexamplesareSam’sClubandSouthwestAirlines).Abroaddifferentiationstrategy:seekingtodifferentiatethecompany’sproductofferingsfromrivals’inwaysthatwillappealtoabroadrangeofbuyers[acoupleexamplesareNordstrom(knownforcustomerservicepoliciesandpersonnel)andWholeFoods(emphasisonhealthfoodsandorganicgroceries)].Abest-costproviderstrategy:givingcustomersmorevalueforthemoneybyemphasizingbothlowcostandupscaledifference,thegoalbeingtokeepcostsandpriceslowerthanthoseofotherprovidersofcomparablequalityandfeatures(acoupleofexamplesaretheHondaandToyotacarcompanieswithcustomersatisfactionratingsthatrivalthoseofmuchmoreexpensivecars).Afocused,ormarket-niche,strategybasedonlowercost:concentratingonanarrowbuyersegmentandoutcompetingrivalsonthebasisoflowercost(TheGapisagoodexample).Afocused,ormarket-niche,strategybasedondifferentiation:offeringnichemembersaproductorservicecustomizedtotheirtastesandrequirements[examplesareRolls-Royce(sellslimitednumberofhigh-end,custom-builtcars)andmen’sbigandtallshops(sellmainstreamstylestoalimitedmarketwithspecificrequirements)].So,whichoneofthesestrategiesisbestforyourbusiness?PreviousNext8thoughtson“TheFiveKeyCompetitiveStrategies”Aw,thiswwasareallygoodpost.Takingthetimeandactualeffortttocreateauperbarticle…butwhatcanIsay…Iprocrastinatealotandnevermanagetogetnearlyanythingdone.ReplyverynicesirReplyverynicesirReplyLandedhereonaGooglesearch.Wascuriousaboutthecompetitivepricingstrategyfore-commercestoresandsawyourlowcostproviderstatement.IjustGoogled“SamsClub”andlookedupacoupleitems.EvencomparedtoGoogleShopping/Amazonresults,theystillhavethelowestpriceonsomehighticketitems.Prettyimpressed.Ithinkbeingthelowcostproviderisincredibledifficulttodo,especiallyformoste-commercestores.I’dsayit’sborderlineimpossibleforre-sellersasawhole(dropship,etc)ReplyIdisagreewiththe“borderlineimpossible”aspect,youstated,regardingbeingalowcostprovider.Theirincreasedsalesputsthematthesamelevel,ifnothigher,withtheircompetitorseventhoughtheirpricesarelower.So,inanymarket,it’samatterof“what’sbeingoffered”thatdeterminesthesuccessofthelow-costprovider.Iwouldlookatthe“mergersandacquisition”approachforbecominga“low-cost”provider.Findaproductorservicethatcanoutsellatalowerratetogainagoodrevenue,thenmergewithabiggerbusinessandreaptheresidualincome.ReplyGreatpost!Haveniceday!🙂uqjzcReplyHowwillacompanychooseanindustryandmeasureitssuccess?ReplyThisisaveryeducativepostclearlydifferentiatingdifferentgenericstrategiesthatareattimesdifficulttodistinguish.ThankyouDr.ReplyLeaveaReplyCancelreplyYouremailaddresswillnotbepublished.Requiredfieldsaremarked*Savemyname,email,andwebsiteinthisbrowserforthenexttimeIcomment.ΔSearchIvanMisner.comSearchMyBlogFor:AllcategoriesAtoZ’sofNetworking(27)Adversity(15)Advertising(25)AlexMandossian(2)AndyLopata(28)Announcement(60)AskIvan(5)Author(166)Balance(15)BehavioralStyle(19)BehavioralStyles(23)BethMisner(24)Blogs(16)BNI(139)BNIFoundation(7)BNIGlobalConvention2021(1)BNIBusinessIndex.com(6)Bob(6)Book(146)BrandBuilding(21)BuildingRelationships(217)Business(409)BusinessEvent(1)BusinessNetworkingandSex(12)BusinessRelationship(2)ButterflyEffectofNetworking(18)Characteristics(9)Chinese(1)ClassicVideo(23)Collaboration(89)Community(16)Competition(15)Connections(266)Conversation(88)Creativity(3)Credibility(90)Culture(15)CustomerService(21)desperatenetworkerbehaviors(10)Diversity(14)Dr.Seuss(1)DreamBig(5)Economy(18)Education(21)EducationalResources(45)EGBOK(4)EmotionalIntelligence(74)Employees(13)Entrepreneur(103)EntrepreneurialEnterprise(59)Event(31)FauxPas(20)Fear(11)Focus(16)Followup(47)Founder'sDay(2)GaragetoGlobal(17)Gender(16)GiversGain(42)Giving(55)GlobalBusiness(69)Goals(39)Gratitude(32)GroupDanceCard(3)Growth(46)GuestBlog(85)GuestBlog(21)GuestVideo(32)Halloween(1)HealingBeginsintheKitchen(14)Health(31)Holidays(15)HowCanIHelpYou?(5)infinitegiving(6)InnerCircle(4)Innovation(8)INSPIRE(9)InternationalNetworkingWeek(35)Interview(4)IntroducingYourself(73)IvanMisner(343)JackCanfield(4)JohnGray(2)JohnMaxwell(3)LawofAttraction(10)Leadership(23)Legacy(1)Management(28)Marketing(2)Marketing/Sales(248)MasterConnector(2)Mentors(18)MillennialGeneration(3)MisnerPlan(17)Motivation(32)MouthMarketing(1)nametags(1)Networking(784)NetworkingPrep(417)NetworkingTactics(385)NetworkingNow.com(3)Nonprofit(1)OnlineNetworking(82)Opinion(2)opportunity(8)PeerSupport(1)personalstory(58)Philanthropy(7)Problemsolving(14)Produ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