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Fortune 500 companies spend $500 - 600k at top consulting firms
Just to learn these 3 principles of competitive advantage:
Just to learn these 3 principles of competitive advantage:
Strategy means choosing what your business will do differently than your competitors to give you an unfair advantage
and win.
Here’s how you win...
and win.
Here’s how you win...
1/ Create a vision for your ideal future business
This vision will guide the choices you make for the rest of your strategy
Here's how
This vision will guide the choices you make for the rest of your strategy
Here's how
1a/ Vision needs to:
• Define your purpose (ex. sustainability, solve a customer problem)
• Define what “winning” means (ex. more revenue, customers prefer you)
• Include customers and competitors (ex. solutions better than competitors)
• Be measurable (ex. customer surveys)
• Define your purpose (ex. sustainability, solve a customer problem)
• Define what “winning” means (ex. more revenue, customers prefer you)
• Include customers and competitors (ex. solutions better than competitors)
• Be measurable (ex. customer surveys)
2/ Decide where your playing field is (and where it’s not)
Decide where you'll focus (and not focus):
• Customer types (ex. income levels, age ranges)
• Geographies (ex. countries, regions, states)
• Offerings (ex. services, products)
• Channels (ex. social media, email)
Decide where you'll focus (and not focus):
• Customer types (ex. income levels, age ranges)
• Geographies (ex. countries, regions, states)
• Offerings (ex. services, products)
• Channels (ex. social media, email)
3/ Decide how you'll have a competitive advantage within each playing field
Make choices that competitors can’t or don’t want to match
3 types of advantage:
• Supply (ex. access to information others don’t have)
• Demand (ex. customer rewards)
• Cost (ex. cheaper product)
Make choices that competitors can’t or don’t want to match
3 types of advantage:
• Supply (ex. access to information others don’t have)
• Demand (ex. customer rewards)
• Cost (ex. cheaper product)
3b/ Choose your playing field and competitive advantage at the same time
Mistake companies make: choosing a field because it’s big or growing fast without a way to win in that field
There's no good or bad market choice on its own
Combine each market choice with how you’ll win
Mistake companies make: choosing a field because it’s big or growing fast without a way to win in that field
There's no good or bad market choice on its own
Combine each market choice with how you’ll win
4/ Done? Now run 3 tests
Test 1: What would have to be true about...
• How your competitors respond?
• What customers want?
• Your costs to make that choice happen?
If any of these answers seem unreasonable, adjust the choice
Test 1: What would have to be true about...
• How your competitors respond?
• What customers want?
• Your costs to make that choice happen?
If any of these answers seem unreasonable, adjust the choice
4a/ Test 2: Narrow/widen your Where to Play
Does narrowing focus your resources to win?
Ex. focus in one region strengthens your brand
Does widening get you revenue you can use to win?
Ex. more products = more revenue to invest in a sales team
Choose the option where you win
Does narrowing focus your resources to win?
Ex. focus in one region strengthens your brand
Does widening get you revenue you can use to win?
Ex. more products = more revenue to invest in a sales team
Choose the option where you win
4b/ Test 3: Is there a choice where the opposite is stupid?
Ex: we will win by having the best customer experience (CX)
The opposite? We’ll win by having the worst customer service
That's stupid.
Turn it into an advantage by making it a unique (not best) experience
Ex: we will win by having the best customer experience (CX)
The opposite? We’ll win by having the worst customer service
That's stupid.
Turn it into an advantage by making it a unique (not best) experience
Summary:
To create a competitive advantage:
• Create a vision
• Choose where to play (and not play)
• Choose how to win
Then, test your strategy
To create a competitive advantage:
• Create a vision
• Choose where to play (and not play)
• Choose how to win
Then, test your strategy
That's a wrap!
If you enjoyed this thread:
1. Follow me @BrianFOConnor for more on business and strategy
2. RT the tweet below to help your audience upgrade their strategy https://twitter.com/1479494259845832704/status/1527626517777350656
If you enjoyed this thread:
1. Follow me @BrianFOConnor for more on business and strategy
2. RT the tweet below to help your audience upgrade their strategy https://twitter.com/1479494259845832704/status/1527626517777350656
