As a CEO or Executive, it’s important to remember that you shouldn’t just compete on price. If you only focus on price, your business won’t be sustainable. Others can always undercut you, and customers won’t learn to choose you for the quality of your products or services. Instead, differentiate yourself from the competition and adapt to the market. This is what will help your company succeed in the long run.
It is important to not compete on price but to value the quality of your products or services. You’ll crash if you don’t adapt to changing market conditions or your customers’ evolving needs. Stick with what you’re good at and be innovative to stay ahead of the competition.
The thing is most businesses have built their business models around a product. As a result, they don’t have sustainable strategies for their companies: if their product starts to falter in the marketplace, they become like BlackBerry and they can’t recover. These companies believe that the sales strength of their products proves they have successful strategies. But the truth is their strategies are for their products, not for their companies.
Take BlackBerry as an example. The company was once the epitome of a great technology company. Its products defined business communications. But once the smartphone came to market, BlackBerry’s focus on a single product line that could only do one thing led to its decline. The introduction of iPhones and Android-based smartphones led to increased technological expectations for electronic devices. But BlackBerry didn’t adapt to these new expectations. As a result, BlackBerry’s stock price dropped by 87%.
The moral of the story is that businesses need to have sustainable strategies in place to survive in today’s ever-changing marketplace. Product sales may be strong now, but that doesn’t mean a company has a successful strategy in place. If anything, it may just be a matter of time before the product sales start to decline. And when that happens, these companies will be in big trouble.
Companies without a strategy are constantly playing catch-up and are at risk of becoming irrelevant. Always look to the future and over your shoulder, too. Innovation is important, but so is constant change. A company that fails to adapt will eventually hit its ceiling and come crashing down.
To avoid this fate, it’s crucial to have a good strategy in place. This means taking the time to figure out the precise difference between you and your competition, as well as determining who your customer is and what your market is. By doing this, you’ll be able to see where there are opportunities for growth.
Ford Mustang is a perfect example of a company that has managed to stay relevant by thinking outside of its original product. The key is to make your product more than just the physical item – it should be about how the customer feels. This gives you the opportunity to leverage, scalability and marketability in the long run.
So, if you want your company to have staying power, it’s important to think about strategy. It may seem like a lot of work upfront, but it’s worth it to avoid becoming just another flash in the pan.
Here are some steps to begin to think outside of your own point of view.
- Take the time to figure out the precise difference between you and your competition.
- Determine who your competition is.
- Determine who your customer is.
- What is your market?
- Where are your opportunities?
- How will you win long-term?
If you want to ensure the long-term success of your business, it’s important to focus on more than just price. You need to understand your strengths, market to your target audience, and keep an eye on the competition.
By taking the time to learn about your marketplace and customers, you can set yourself apart from the competition and build a sustainable business. So, what are you waiting for? Get out there and start learning!