The Reason for Developing a Competitive Strategy
A business working well in a local or regional marketplace also has competitors. In this atmosphere, how do the owners of the business grow against the competition?
This article is about how to create a strategy to perform at your best potential against the competition. And we look at answering this question through a management consulting lens. Business owners have much at stake when it comes to growing their business.
Consider increasing the efficiency of your business. Taking greater advantage of your expertise your relationships, your reputation and more is reasonable. But, in terms of the key details, what does that look like? More to the point, in talking about a plan to compete better might we ask what your big hairy goal is for 2020?
In pursuit of the above question, the most important aim is to create and draw from organizational intelligence about your company. A definition of organizational intelligence:
What is Organizational Intelligence?
Organizational intelligence (OI) is the capability of an organization to comprehend and create knowledge relevant to its purpose. In other words, it is the intellectual capacity of the entire organization. ( source )
Creating Your Own OI
Here you might explore your supply chain, company structure or your mission, vision, or perhaps your value proposition. On another level, your back-office details such as your financial, accounting, risk and debt would also be essential to examine.
You Know Your Business
You know your business like no one else. Looking at your business in the marketplace is always a good idea. Furthermore towards creating and developing your own OI, look over the following components of your own company. What are your business goals for the coming year ahead?
- Business Accounting
- Customer Service
- Brand Marketing & PR
- Business Development
- Strategic Planning
- Leadership & Governance
The Challenge of Growth
Oftentimes successful businesses grow faster than they can manage. As a consequence, scaling the right way is a challenge. Elaborating your OI and following a competitive approach against local rivals gives you strength and confidence in your work as a manager and business owner.
These insights then, about competition, can be advantageous for your company. They might reveal the right path to increase market share, or hiring smarter, or perhaps improving your key products or services.
Building Business Relationships
Also, you may have a circumstance where you have hard-working staff and you are already enjoying growth. However, at the end of the year looking forward to the next horizon, you aspire to pay an even bigger bonus to your best employees next year. At this juncture, it is important to point out that rivalry is not always competitive, but it often can be advantageous. In so far as reducing switching costs and maintaining key relationships, networking, mentoring, and joining one's local community is advised.
Also, when the goals you have are set in the future are specific and difficult to attain and you have achieved them, this is often based on hard work. We celebrate getting the job done, and enhancing productivity, and talking about the workplace. Other posts on our site deal with this concern.
Nevertheless, getting back to the question, you have a strong reputation for quality work and excellence. Is there one more way to answer the question about competition and strategy?
A Look at Porter’s Five Forces
On that note, to finally answer the question of how one can compete better, here we introduce the method to generate questions and position your business in the marketplace. Harvard professor Michael E. Porter. in his seminal paper on the five forces of strategy enumerates five competitive areas.
Over 50 years have passed since Michael E. Porter first published this exceptional concept. What does it show business owners looking to implement strategic planning and tactics for competition? It shows on the one hand that a business must look at its operations with suppliers to see if the relationships are strong or weak. Secondly, it shows that joining a local business chamber adds value for both networking, and to know what is happening in your marketplace with new entrants. Thirdly, Michael E. Porter’s Five Forces illustrate that placing an organizational focus on learning about the customer is critical.
Strategic Consulting for Service Companies
Working smarter is about improving the system you have in place to manage your company. Creating and developing OI is not a one-off deliverable. The approach of a learning organization produces the ability for leaders and managers to solve problems before they happen, and cultivate better business decisions. We hope you have enjoyed this post on competitive strategy, and we wish you the best of luck for your business in the new year.