Managing a business in a market where the competition is tough is a reality that every entrepreneur and business owner has to face nowadays, therefore, certain strategic planning in a market where key players already rule the market is crucial. It is quite difficult and might be scary for entrepreneurs at the beginning of the journey to step in and take a risk. Established business in such a market is the first step in taking the road to success, which requires strategic thinking, determination, and tough decision-making.
Entrepreneur and CEO of Algedra Group Mohab Ayoub shares 5 key elements for managing your business in tough competition and increase share in the market.
Product or Price Differentiation
“As an entrepreneur from a marketing perspective, you know that to sell a product or service, your product or service must be either better than the competitors or has a competitive price advantage. If your business doesn’t have either of the competitive advantages, you must rethink your business strategy. Brands with emphasis on product differentiation like Algedra Interior design, offer service of supreme quality and luxury style. Budget-friendly brands emphasize price differentiation by providing products at the lowest price points.”
“Once you have launched a product or a service, your task doesn’t end here. You need to keep innovating especially in the industry where innovation is integral for growth. You must make changes in your product or service according to trends and customer requirements. For example, in the interior design industry trends are changing every year, and accordingly, clients taste and requirements”- says Mohab Ayoub. Many companies start out phenomenally and have so much potential, but fail to innovate and end up being bankrupt and forgotten. We saw many examples on the market of companies who lost market share due to lack of innovation or even went out of business. Innovation keeps you ahead of your competitors at the same time benefits the client.”
Customer Service and communication
“Exceptional customer service is an element of every successful business. Effective communication with your customer helps to build brand loyalty. Being available for your client through as many communication channels as possible gives them the possibility to choose the most convenient way of communicating, which helps establish a strong connection. Understanding that we pay special attention to communication with our clients and apart from traditional ways, we have created an Algedra portal – a unique space for our clients, where they can track the progress of their projects, share their comments and thoughts. It also provides a feedback channel to the customers, creating room for improvement.”
Advertising to the right audience
“Advertising to the right target market plays a fundamental role in the growth of your business. Understanding your client persona and communicating a relevant message through the right channels will attract the devoted audience for the product or service you provide. If your target market is generation Z, advertising through social media marketing will be much more efficient than traditional Ads on TV that they’d barely watch or trust.”
“Respecting the values and being a socially responsible brand is another essential element in building a sustainable business. Contributing to community wellbeing in one way or another should be an integral part of the business. That includes internal and external practices that start from the company’s mission, vision, and culture. That is why it was important for Algedra to become part of the United Nations organization and integrate principles such as respecting human rights and sustainable business practices into the business structure.”
Managing and growing an existing business is challenging, and as the year 2020 showed entrepreneurs must be prepared to navigate through any crisis in order for a business to be successful in the market where competition is high. Considering these 5 elements in your business strategy will help to sustain and grow your business in tough market.
For more follow Mohab Ayoub on Instagram where he shares his knowledge and motivation in weekly “Way To Success” episodes.