Author: Jean Richard Franck, M.A
Nowadays, people prefer to run their own businesses instead of doing a job. For this reason, it does not matter if you have an ecommerce store or brick and mortar business. What is necessary is that you need to be competitive in order to be successful in the business you venture into.
Everyone business owner wants to assure the consumers of having the best business organization and products. The only way to convince the consumers is to have a wide margin in productivity ahead of your competitors. Right from the beginning, there have been several competitive strategies used by business owners and only a few of these strategies have been yielding a positive result. For you to be a competitive business owner, here are the best strategies you need to excel.
i) Cost Leadership
It is the commonly used marketing strategy by most organizations. Any organization that makes use of this strategy is already the leader of the industry. Now, there are many other companies that are ready to compete and take their place in the market. In other to maintain the repute and leadership, they are using the cost strategy. How does this function? The purchasing manager of the company buys the products in wholesale prices and of course, the cheapest rates.
The companies use the lower costs as a benefit and it enables them introduce their products at affordable rates .Also, it helps them to keep their customers loyal. The other companies in the business race , find it difficult to understand how they have been able to maintain such a lower cost. The biggest advantage derived by the company here is the ability to buy from the wholesaler, which enables it to purchase the best quality of products that will certainly solidify the trust of its customers.
This is a common strategy that is often utilized by small scale business owners. As they are new in business, they have the opportunity of taking risks with their products and services because there is nothing much to lose as the business is small. According to Jean Richard Franck, they can use the following tips to win their competitions;
- Differentiation strategy: This allows companies to introduce new products in the market. These products are not available on any other platform, except the market.
- Customers are easily attracted towards the new products and services and so, it will be easier for the company to increase its sales.
- The competitive industries will take time to introduce the same items in the market. Meanwhile, the company with the original idea will build a strong customer base.
- Jean Richard Franck says that it is important for the owners of the business to assure that their products have been properly marketed. It is the only way to show the clients that you have something different.
- While planning to use the differentiation strategy, you have to ensure that you introduce something that your competitors cannot easily copy.
iii) Price Strategy
It is the best strategy for the companies that are looking for long term competitive advantages. However, they have to follow these steps in order to be successful.
iv) Promotional Strategy
Customers have a unique mentality. They always want to buy the best products at the cheapest prices. You must take into cognizance that when you are introducing a new product or service, you need to assure the prospective buyers that it is of the best quality. Also, you need to ensure it comes into the market at the cheapest rate to encourage buyers.
The advantage of this strategy is that it will enable you attract a very good number of customers to your company. Once you have won the hearts of the buyers and increased traffic on purchases, you can tactically and slowly increase the costs of your item(s). However, you have to ensure that you maintain the best quality as it is the only gateway to keep your customers loyal to your company or items.
v) Low Cost Strategy in Targeted Markets
In ‘’A Complete Innovative Plan of action for the Strategic Manager’’, the author clearly mentioned that it is important for every business organization to understand its targeted market. In this strategy, the company has to target the customers that belong to the lower class of the society.
The reason is that most of the companies only target the upper class buyers knowing that they will buy their products. However, they do not know that lower class buyers can be turned into loyal customers as well. All you need to do is to introduce a new product that meets the requirements of the people that belong to lower class categories. Then, make sure that the items are at the lowest costs to enable them make the purchases. Once the goods are at the lowest costs and you use the best quality in productions, you will definitely attract both the upper and lower class purchasers. Therefore, it is very essential for you to select your market wisely and manage a proper marketing campaign for the promotion of your brand.
vi) Special Product Strategy
In this form of strategy, the entire game of the market is changed. It is the type of differentiation strategy that focuses only on a special group of people. For example, the voice assistant feature in phones is made for the blind and elderly people who do not have the knowledge of smart phones applications. Now, it entails you will target a special market. The disadvantage here is that it has some hidden benefits for everyone. So, you can creatively target every market as it will boost your sales and profits.
vii) Gift Card or Discount Strategy
According to ‘’A Complete Innovative Plan for the Strategic Manager’’, one of the most common strategies that are used nowadays is the discount or gift card strategy. In this, business owners will start a discount offer every month on a special stock that will give them the opportunity to attract more customers and increase their sales. This strategy empowers them to build trust of their customers.
Remember that it is your business and you know what is the best for its growth. Therefore, make sure you select a reliable strategy that will help you to enhance your sales and revenue. As a perfect guide, there are several profitable strategies in ‘’A Complete Innovative Plan of Action for the Strategic Manager’’ by Jean Richard Franck. Make sure that you read this book so that you will be part of hundreds of those who have testified of its benefits in their businesses. This book will surely take your business to a new height.
Jean Richard Franck(2017) A Complete Innovative Plan…
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