Transcript Slide 1
Locking on to Your Competitive Advantage and Market Position Bullivant Houser Bailey’s Emerging Business Group Seminar Series February 24, 2010 “The essence of strategy is choosing what not to do.” Michael Porter Catalyst Strategies Identifying and Catalyzing Growth Opportunities www.catalyststrategies.com 1 Two “SIMPLE” questions are critical to success What is the core reason why a prospect should choose your product or service? Your “market promise” (a.k.a. Point of Difference) How will your company sustain higher growth and more profitability than competitors? Your “secret sauce” (a.k.a. Competitive Advantage) 2 Success Story: Ning Market Promise “Ning is the social platform for the world's interests and passions online. Explore and express your interests, discover new passions, and meet new people around shared pursuits” Steps to Define Your Market Promise: 1. 2. 3 Define your target Know them… understand their needs 3. Define their decision criteria 4. Distinguish between the market ‘ante’ and what can truly differentiate 5. Map your competitors 6. Pick the whitespace that meets criteria for a winning market promise Criteria for a Winning Market Promise Must be: Single Minded Clear Compelling Differentiated Believable Sustainable Scalable Is there one point of difference, versus a collection or fusion of multiple ideas? Is the point of difference focused on one main problem or idea? Is it obvious what is being promised? Easy to communicate? No jargon? Does the promise directly address a critical problem for the target buyers and influencers? Can the point of difference be uniquely delivered by your company and not by major competitors? Can your company prove the claims in your point of difference? Can the positioning flex and evolve to continue to be relevant in future? Can your company own the differentiation over time versus being depend on short term or narrow advantages in features? Can this differentiation scale on a global basis (if relevant)? 4 Success Story: Ning Competitive Advantage Chosen Customer Benefit Value (to Company) Attribute (Product, Cost, Service, Distribution etc.) Steps to Define Your Competitive Advantage: Easily build your own social network 1. Start with important attributes of your product/service 2. Distinguish between the market ‘ante’ and what can truly differentiate 3. Define the value to your company of key attributes 4. Select one customer benefit that comes from your unique attributes and value* Scalable, repeatable model Bullet proof social networking platform *Don’t get hung up on how your competitors have won (e.g., Facebook) 5 Potential Competitive Advantages Cost Leadership Product Characteristic Differentiation Product Breadth Differentiation Distribution Differentiation Niche Market Dominance Customer Experience Differentiation • Driving costs lower than industry norms based on efficiency, size, scale, scope • Distinguishing products or services from others in the industry in a compelling way that attracts target customers Differences include quality, function, features, design • • One stop shop – offering unmatched range of relevant products and services to target customers • Creating distinctive access or availability to products or services via unique distribution relationships, channels, or capabilities (e.g., direct marketing) • Outperforming competitors in a narrow market segment Advantage can be achieved via segment-specific offerings, services, servicing levels or model, etc. • • Delivering uniquely streamlined, direct, proactive, consistent customer experience for critical customers interactions 6 Key to Success: Integrating Your Competitive Advantage and Market Position Ning “market promise” 1.9 Million Ning Networks 40 million registered users $750MM valuation Ning “secret sauce” 7 About Catalyst Strategies 8 Catalyst Strategies Identifies and catalyzes growth opportunities Serves technology and services companies Catalyzes commitment to the actions that deliver tangible market results 9 Clients 10 Services Solidify Your Growth Strategy Innovate and Differentiate Products Transform Your Customer Experience 11 Accelerate Marketing and Sales