the race to market

The Race to MarketThe Race to Market


Are you ever 3 steps ahead of your competition?

Are you ever 3 steps behind your competition?

Does the best price always win?

Does the best delivery always win?

Do you customize to often?

Are you customer demands unrealistic?

Do you lose jobs because competition makes unrealistic promises?

Can you afford distribution?

Can you not afford distribution?

Is your product compared to others as a commodity?

Are you truly giving your customers exceptional service?

Are you making a living or building a business?

Are you making the ROI that you should be?


The Old Strategy:1. Compete in Existing Market Space

2. Beat the competition.

3. Exploit existing demand

4. Make the value/cost trade off (create greater value to customers at a higher cost

or create reasonable value at a lower cost)

5. Align Company’s activities to differentiation or low cost.

1. Find new ways to cut cost

2. Grow revenue by taking market share away


The Old Strategy:

1. Build a better product.

2. Build it faster than others.

3. Build it cheaper than others.


How do you do it?

1. Six Sigma

2. GE Workout

3. Lean Manufacturing

4. Benchmarking

5. Execution

6. Balance Scorecard

7. Theory of Constraints

8. Business Process Improvement

9. TQM, MRP, ZZZ, etc.


The New Strategy:1. Create uncontested market space

2. Make competition irrelevant.

3. Create and capture demandFocus on non-customersCreate and capture new demand

4. Break the value/cost trade offSeek greater value to customers and low cost simultaneously

5. Align Company’s activities of both differentiation and low cost.

1. Value Innovation that focuses on:

1. Utility, price, and cost positions


We need to position a product so that it is without competition?

And to do that:

1. It must provides a simple solution

2. Can be easily utilized/operated

3. Can be easily supplied

4. Can be supplemented with additional products?

5. Priced for the masses


Create a Strategy in Four Steps3. Eliminate factors that the industry takes for granted but adds no

perceived value to customers.

5. Reduce factors well below the industry’s standard to avoid the mistake of over delivering in order to beat the competition.

7. Raise factors well above the industry’s standard so your customer won’t have to make compromises.

4. Create new sources of value that the industry has never offered.

Keep it simple, don’t complicate


References

BLUE OCEAN STRATEGYHow to Create Uncontested Market Space and Make the Competition Irrelevant

By W. Chan Kim and Renée Mauborgne

Mastering the Complex Sale: How to Compete and Win When the Stakes are High!

By Jeff Thull

The Prime Solution Close the Value Gap, Increase Margins, and Win the Complex Sale

by Jeff Thull

Business901.com

Product Launches

Develop a launch program using a simple, affordable practical and repeatable

process.
