|
"Developing a successful competitive strategy requires a deep and thorough understanding not just of your competitors and the moves they are making, but of all of the other factors that have the potential to influence your position in the marketplace," said Edward T. Reilly, President and CEO of American Management Association. "It's equally important to know your internal organizational strengths as it is to know the external challenges and opportunities," said Reilly. He offers the following advice on how to get ahead of the competition:
Know the market. It is vital to conduct research to determine what products are being offered to your target market, and at what price. Without this information you'll be formulating your product development and pricing strategies in the dark.
Talk to customers. Get to know your customers' needs and wants. Learn what they are saying about your competitors. Expand the market by identifying customers whose needs are not being met, and develop products to meet them.
Identify your own organization's strengths and weaknesses. Honest evaluation of your company's assets and shortcomings is necessary for effective strategy planning. Leverage strengths to take advantage of market opportunities. Address organization weaknesses that impact your customer.
Analyze your competitors' products. This will give you ideas on how to improve your own offerings and highlight the superior attributes of your products versus those of the competition.
Monitor the competition's game plan. Become familiar with their product, marketing, sales and customer service strategies so you can counter any competitive move.
Form alliances that complement your strengths. Identify partners that fill existing gaps in your knowledge or capabilities.
Regularly monitor the marketplace. Customer needs and competitor capabilities change every day. Effective competitive strategy depends on staying abreast of these changes. Gain perspectives from customers and other constituents to validate strategic direction and adjust accordingly.
Anticipate the future. Understanding the competitive situation today is critical in developing a winning competitive strategy. However, to achieve and sustain an advantage, it's equally important to define what the future will bring.
|
