In his book, Competitive Strategy, Michael Porter describes two generic strategies – differentiation and cost leadership. He shows diagrammatically that return on investment (under each of these strategies can be optimized). He explains that, under a differentiated strategy, the organization focuses on creating a point of difference in its service offering to an homogeneous […]
Posts Tagged ‘competitive strategy’
In this series of articles, we explore ten ways in which to boost your profits. The selection on which Profit Boosters will most leverage your bottom line is a function of: Your business model; Where your business sits on the industry growth (evolution) curve; and The dynamics in your current operating environment The first […]
The Competitor SWOT is a simple way to evaluate your strengths and weaknesses relative to a specified competitor and inform appropriate action you should take to close any performance gaps.
Most industries in developed economies can be classified as mature. This means that market growth is slow, maybe even approaching that of the national GDP or population growth. Rivalry is intense, as many players compete for less and less business. Demand is led by customers, who are very discerning and knowledgeable. Trading conditions are more volatile than ever before, making it difficult to predict how the future will unfold. In this article, we explore 10 steps that you can easily implement to increase customer aquisition, retention and loyalty
We define a competence as a set of related skills or capabilities that an organisation uses to create value. Core competences are those sets of skills or capabilities that represent ‘cost of entry’ i.e. they are needed just to be able to ‘play the game’. Distinctive competences are the things that an organisation does better than their competitors or does uniquely that
distinguish or differentiate them from the ‘pack’. This is the source of current and future competitive advantage. Using this framework will assist you to identify the distinctive competences you have and need to acquire to develop or sustain your competitive advantage.