With the world increasingly becoming commoditised, it is difficult for business to compete on anything but price.
I have had a recent discussion with an electrical contractor, where they mentioned their market is becoming increasingly price driven.
I think commodities products and services are fine – you need to be price competitive on these products and services. These are the services/products that will open the door to prospective clients.
However, the opportunity to add value to clients and command a premium price is the space where your clients operate in complexity and/or high risk. This is where skill and experience is required and it is generally difficult for your competitors to replicate your offering.
It is also difficult for prospective customers to compare your offering to other competitors. This space is referred to as your strategic sweetspot or” blue ocean” ie. the space where;
- your business has unique capability to meet your target customer needs and
- your competitors do not have this capability
So look for complexity and risk – the market is less crowded! It a perspective that has helped clients we have worked with to develop their strategy and competitive advantage.
If you have any questions regarding this blog please contact Tony Monisse
