What does strategy mean to you?
If you’re like many business owners who come to me for help… you’ve got the concept wrong.
A strategy is not just a plan.
It’s not a path to get to a goal.
It’s more than that…
It’s how you’re positioned in your marketplace that provides you with a strategic advantage over your competition.
What’s more, it's how you’re positioned so strongly that even if new competition enters the marketplace, they won’t be able to take your share from you.
Think about Bunnings.
They entered the marketplace with 4 or 5 things that were unique to them.
Their slogan ‘lowest prices are just the beginning’...
Their positioning just outside major cities...
The way they hired tradespeople as customer service reps...
Then think about their (now sunk) competition, Masters.
In many ways, Masters tried to just copy Bunnings.
But they missed the secret sauce…
Similar to Coke, Southwest Airlines in the States, Nike… these are all examples of industry giants with many copycat competitors.
But they all still continue to dominate, because they have that strategic advantage.
I think that’s something worth thinking about in YOUR business.
How are you differentiating yourself from the competition?
Most businesses differentiate based on price.
This is a dangerous game, because not only do you establish yourself as a cheap commodity, but also because others can always come in and do it cheaper than you. So you will keep driving your margins down, until you go bust.
I don’t know about you, but I don’t want to do business having to drop my pants on price on every job I compete for!
Thinking of other ways to differentiate yourself takes more time. It’s harder to get it right. But once you nail it, you can significantly scale.
That means no more taking everyone’s money because you’re desperate.
It means working with people who value your service, and are happy to pay for the value they receive.
So take some time today to think about it.
What is your competition offering?
And how can you do it better?