There is competition in the market area. In some types of business, it is especially pronounced, in others, where the market share is divided approximately equally, it is practically invisible. But in any case, in order to successfully develop and increase your profits, you will have to have at least some competitive advantages. How do you get ahead of your business rivals, and what strategies are the best to use in the competition?
It is necessary
analysis of competitors, knowledge of the target audience and the needs of its representatives
Instructions
Step 1
Use a cost advantage strategy. As a rule, competitors can be quickly bypassed by offering consumers a product of similar quality but at lower prices. This can be done through various technological innovations, the use of cheap labor, and cost savings. However, in this case, it is necessary to assure buyers that the product is of proper quality, without factory defects and not expired. And for this, you can conduct promotions, tastings and various events related to the presentation of this product.
Step 2
Use a buyer's differentiation strategy. Here it is necessary to find such a category of buyers, the needs of which this company will be able to satisfy better than its competitors. At the same time, it is important to properly organize the service, transform the product, improve its design or quality. For example, you can offer free shipping to retired customers or a gift to students when purchasing this product. In other words, it is necessary to formulate such a feature of the business that would become a compelling reason to buy for the selected category of customers.
Step 3
Use a focusing strategy. In this case, when developing a business, it is important to pay close attention to any one characteristic of the product or the selling process. For example, you can promote the quality of a product, its ease of use, and durability. Or you can advertise your business as the sale of exclusive goods, the number of which is strictly limited. It can be luxury furniture, Japanese sushi sets, fabrics from Italy. The focusing strategy is often compared to the middle ground between the price advantage strategy and the buyer differentiation strategy, since it combines the advantages of both methods.
