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Competitors behavior to be the leader in their industry using different competitive strategies

Author: Jean Richard Franck, M.A .

Competitors behavior to be the leader in their industry using different competitive strategies

Whether you have a brick and mortar business or an online retail store you have to be competitive to be successful. The business organizations are rapidly advancing according to the changing technologies and the demands of the customers.
Every business owner wants to be the best, and the only way to make it possible is to assure that they remain a step ahead of their competitors in the market. Several competitive strategies have been utilized by the business organizations. Here we have the top 5 to help you become the leader in the industry.
Cost leadership
The most common marketing strategy that is utilized by the vast enterprises is the cost leadership strategy. The businesses are already the leaders of the market, and many other companies are fighting to take their place. To assure that they will remain at the top, they start to manage the cost of their products to guarantee customers will never leave their platform.
The managers will buy the products at the wholesale or the cheapest rate. They will manage the products in such a way to assure that they will meet the requirements of the customers and that the quality of the items is not reduced. They will launch the products in the competitive markets at a lower cost. When more customers will visit the store to buy the products they can quickly earn a considerable profit. It is not good for the small business because economies of scale are required to become successful.
Differentiation
It is the strategy that is often utilized by the small business owners. They do not have much to lose and, so they can quickly take risks with their products and services to grab the attention of their customers.
• In the differentiation strategies, the companies will introduce something unique in the market. It can be some services or product.
• It has to be assured that such items are not available on the market before.
• When customers see something new, they will undoubtedly get attracted to the products and would prefer to have a unique experience
• Competitors will take time to copy and launch the same products, and for that duration, the organization that began the item will attract most of the customers.
• With the introduction of the unique items, it is assured that they are marketed well because you have to show the customers how your products are useful to them.
• When you are planning to use the differentiation strategy you have to assure that you will not introduce any item that other companies can easily copy.
Price strategy
If you want to maintain the long-term competitive advantages, the best solution would be the pricing strategy. To be successful, you will have to follow the given steps.
• Penetration
• Economy
• Skimming
• Bundle
• Promotional strategy
When you penetrate the market, you have to assure that the cost of your items is lower as compared to your competitors. Every item that you launch should have the lowest market rate and decent quality. In this way, the customers will get attached to your business. With the passage of time slowly increase the rate of the products. You have to take it slow with the economy so that the customers will not see the difference. If you had higher rates, in the beginning, you could lower them only to increase the return rate of the customers. The demand for your items will increase in limited time. To attract more customers, you have to assure that you provide them with additional benefits.
Marketing in targeted area with low-cost strategy
A common strategy that most of the enterprises and small business organization use is the low-cost strategy. It might seem like the price strategy, but there are different rules that you have to follow.
The companies begin with the introduction of the new product line. An important thing they have to consider is to assure that the cost of the product is the lowest as compared to their competitors. Now what they have to do is to select a specified market in which they will promote their products. Even if they have customers in the upper class, they will only target the lower class because those customers are often ignored. Due to the low cost, the customers will easily get attracted. The biggest benefit of their strategy is that by targeting only the lowest market companies get a chance to enhance their visibility of their items in all other upper markets. It is one of the most cost-effective strategies.

Differentiation focus strategy
It is similar to the low-cost focus strategy, but the only difference is that instead of the price importance is given to the uniqueness of the item. You can take the example of a product that has been specially manufactured for the left-handed individuals. In this way, only the market of left-handed people is targeted, but the hidden benefits are available for the right-handed individuals that will increase the sales of the items.
Discount strategy
It is the competitive strategy that is utilized by almost all the business organizations. They will increase the rates of their products and will suddenly launch the discount offers. The customers will rush towards their stores to buy the products at a lower rate. In this way, they will generate a higher revenue within a week as compared to the sales they made in a month.
Bottom line
You are the owner of the business, and you have the freedom to select your competitive strategy. Select the one that you are most comfortable with, so you can easily manage your marketing campaign.
In case you are planning to develop a new competitive strategy, you have to assure that it follows the moral laws. Never follow any illegal way to become successful because your success will be short-term and customers will never trust you again.

Author: Jean Richard Franck, M.A .
Reference
Dani, A. (2013). What Are the Four Major Types of Competitive Strategies? azcentral. azcentral.
Geetika, M. (2012). Competitive Strategies. SlideShare.
Kimberly, A. (2017). What Is Competitive Advantage? Three Strategies That Work. The balance .
Martin. (2014). Competitive Strategies. Cleverism.


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