All You Need to Know About Business Competitive Strategies
Business Competitive Strategies: Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry.
It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment). Such type of strategies plays a very important role when industry is very competitive and consumers are provided with almost similar products. One can take example of mobile phone market.
Low price is a suitable competition strategy if you have a natural cost advantage. If you have a unique, low-cost source of supply, a special, low-cost design or an unusually productive workforce, you can monitor market prices and undercut the competition, knowing you still make a profit when they lose money.
Competing on price means you have to implement a cost reduction and control process to reduce costs to their minimum and keep them down.
If your business has a prominent or more accessible location than your competitors, your strategy has to highlight your advantage in your promotional material.
Prominently display your address, add a map and make sure you support the convenience of your location with measures on parking, quick service and attractive customer areas.
Unique product or service features will make customers buy from you rather than competitors. Ideally, such features are difficult for competitors to replicate. Your strategy is to promote your special features to become known as the business that has this particular product or service.
Developing special features raises costs, but usually you can achieve higher prices. The strategy has to ensure that value to customers justifies the higher price.
Offering high quality is an effective competition strategy for marketing to high-income consumers, but it is challenging to implement.
It involves assembling well-trained staff, reliable suppliers, a competent development team and an interested market segment over the long term. Such a strategy can be very profitable.
A focus strategy segments the accessible market to identify and group customers who have specific needs that your company can satisfy more completely and at lower cost than your competitors.
If your company has a strong competitive advantage in one product with particular qualities, it makes sense to focus your resources on customers who are interested in those qualities.
Niche marketing is a customer-oriented strategy that segments an accessible market by surveying customers and determining their needs and preferences.
Your company can then develop the features of a product that match the needs of a particular segment or niche. The effectiveness of the strategy depends on how well you identify the needs of your customers and how well the features of your product satisfy those needs.
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