The procedure for developing your own competitive strategy

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Consumers do not even think about how the purchase of a product affects the value chain. The product must reduce the buyer's costs and/or increase the efficiency of his activities in this scheme. This is why a competitive differentiation strategy must be based on the factors that the consumer uses when assessing how and in what way the product will help him reduce costs or increase the efficiency of his work (in comparison with competitors).

The procedure for developing your own competitive strategy

To identify competitive differentiators, you chiropractor email address need to do the following:

Identify your target audience.

To do this, you can conduct an ABC analysis, identify parameters for key category A consumers, and use a survey to determine the target audience.

Build your customer's value chain.

Direct or indirect influence from the manufacturer on the buyer's value chain will help to identify the consumer value of the product. This will help to form a clear understanding of how changes in this scheme affect the production process and the company's work as a whole.

Rank your customer selection criteria.

A buyer value chain analysis will identify common criteria that determine whether a buyer is or is not considering purchasing a product.

Customer value and competitive differentiation advantage are created only if your products are specifically tailored to the customer's product use criteria.

Discover sources of uniqueness.

They may already exist or be potential. It is necessary to find those types of enterprise activities that have a significant impact on the criteria for choosing a client company. And then identify the most popular ones in order to compare with competitors and achieve an advantage.

Determine the costs of developing a competitive differentiation strategy.

Identify the costs that will have to be implemented now, and then those that will be necessary for potential sources of differentiation. Identify the costs, try to reduce them to a minimum.

Implement a new competitive strategy.

Optimize existing activities in your chain so that, at minimum cost, the product is competitive and truly valuable to the consumer.

Test your new competitive strategy in practice.

It is necessary to test the policy being formed for sustainability. 3-5 months are enough for this. During this period, record the growth of sales. If it is sustainable, then the strategy works.

Consider cutting costs.

Reduce those expenses that are not related to the chosen differentiation strategy.

It is important to understand that consumers get used to a good brand and rarely look for a replacement. This can only happen if the manufacturer uses a competitive strategy to reduce production costs. In this case, it is able to offer products of the same quality, but at a lower price than its competitors. Naturally, buyers will go to it. This means that price competition among sellers is one of the main forces of market interaction.