Gaining a competitive edge

Gaining a competitive edge

Capture your market without destroying it.

To be successful, businesses must capture their market, but they must do so in a way that does not destroy them. For small companies, this means refraining from attacking a competitor had on. The most successful strategy is a more subtle, low-key approach that does not draw and response from competitors. For instance, rather than attacking a market by launching a price war, which draws us with this and most severe responses from competitors, a company would be better off focusing on segments of the market that are underserved or overlooked by larger, stronger rivals. Find an opening niche in the market that competitors are overlooking imposition your company there.

Avoid your competitor strengths and attack their weaknesses.

Attacking competitors at the points of strength is a recipe for failure in battle and in business. Direct attacks are costly to both parties because they lead to battles of attrition. A much more effective strategy involves attacking competitors at their points of weakness. Companies who strengths focus on a competitor's weaknesses can maximize their games while minimizing the use of their own resources. Although a small retail store cannot compete on price with giant retailers that buy in volume, it can compete successfully by offering unique product services, it optional knowledge, deeper product lines, and other extras that customers value.

Use foreknowledge and deception to maximize the power of business intelligence.

Before an entrepreneur can attack a competitor's weaknesses, he or she must be able to identify the competitor's weaknesses, and that requires information. It is vitally important for business owners to survey the "battlefield of business" by monitoring overall competitive and industry trends as well as key competitors individual news. Knowledge management is vital strategic activity as it is masking as much as possible about your own company strategic intent.

Use speed and preparation to swiftly overcome the competition.

The notion that large organizations are stronger than small ones is a myth. Small companies can use their size to their advantage; it enables them to use speed, flexibility, and focus to gain an edge over their larger rivals. In the market for small, relatively inexpensive corporate jets, Adam aircraft industries has emerged as the leader because of its ability to bring its A700 jet to the market two years faster and with a smaller investment than any of it competitors. The company uses rapid prototyping and as many off-the-shelf parts is possible to speed its double tail fin jet to market and gain an edge over its rivals.

Use alliances and strategic control points in the industry to shape your opponents and make them conform to your will.

This principle suggests changing the rules of the competitive game to make rivals play against your strengths, enabling you to take control of the battle. For instance, when Netflix first introduced the idea of using the Web as a mechanism for making video rentals easier and more convenient for customers, it rewrote the world book of competition in the industry in its favor. Although bigger and more established, Blockbuster had to develop its own online video rental process to remain competitive. Innovations and strategic alliances are important ways of reshaping an industry and staying ahead of competitors.

Develop your character as a leader to maximize the potential of your employees.

Leaders with character garner the respective followers and are able to get the greatest performance from them. Discipline is an important part of an organization because it establishes order.