Strategic competitive comparison to increase bottom line profitability: Part 1
Most business leaders and CEOs are looking for ways to increase bottom line profitability on a beer budget. So here is the first of 2 articles to either put more money in your pocket or keep it there through an inexpensive strategic comparison to competitors.
When was the last time you truthfully and strategically compared yourself to both direct and indirect competition? If you are one of the few companies that consistently do this regularly, say quarterly or semi-annual, skim the rest of the article for one or more insights on different ways to improve your competitive analytics. For the rest, this article will provide a number of low lying fruits results to easily and inexpensively harvest.
Start with a strategic overview that can be as simple as answering the following questions yourself and then expanding those thoughts with input from your sales, customer service and operational key member.
Do your competitors see you as their primary competition? Why or why not? Let’s look at the financial aspects of getting you there or to accelerate and lengthen the lead you have over the competitor nipping at your heels.
Examine the competition that is out there. If you do not already know, determine where your corporate financial position is in relation to your competition. Knowing this will help you figure how much money you need to grow you company to either pull away from the competition or surpass the competition that’s currently ahead of you.
Who are your direct competitors, those companies that are going after the same target audience your company is? What about your indirect competition, the companies that attracting your potential audience with a different or similar (but not exactly like yours) product or service? Your potential clients can just as easily buy from these companies if they are not buying from you.
Brainstorm tactically to expand the strategic insights from the questions above:
- How do you differentiate yourself from the competition?
- Do you have the best quality?
- Fastest delivery time?
- Most competitive price?
- Best reputation?
- Best innovation?
- Best service or support?
Your answers will be enough to find at least one to three areas to improve either top line sales, bottom line profitability, or to plug a gaping hole that now seems clearly visible. For even better results, talk to customers to gain their input. After all, how customers see themselves being treated and the competitive landscape is much more important than what you think they are thinking.
Originally published by ezinearticles and reproduced with their and my permission for your reading.