On this week’s SBI Insider Video Podcast we discuss the topic of competitive advantage. How to select your competitive advantage to win, how to validate it in the market and how to align the organization to deliver on the advantage. CEO’s need to be focused on what you do better than your competitors and rally the organization around that advantage.
In the first section of the show my colleague, Matt Sharrers, Partner at SBI, and I discuss the three sources of competitive advantage; Price, Product and Customer Experience. Many executives have not proactively defined their competitive advantage. By not deciding they have let their customers pick for them and left to their own devices, customers always choose price.
It’s difficult to grow revenue faster than your industry’s growth rate and faster than your competitors. The Revenue Growth Diagnostic interactive tool will help you determine if you are likely or unlikely to make your number.
Another mistake we see is trying to serve all three advantage sources of Price, Product and Customer Experience. This is a risky strategy to try to be all things to all people. While there are always components of all three in your offering, there should be one that stands out above others as the primary. Whatever competitive advantage you choose, the CEO must rally the organization around that advantage and align the organization to deliver on it.
In the second section of the show we describe how to validate the competitive advantage in the marketplace. Matt defines the barriers to a competitive advantage strategy when faced with false differentiation, uneconomic differentiation, and unsustainable differentiation.
In the final section we discuss delivering on your competitive advantage. To deliver on your advantage the functions inside the organization must be in strategic alignment. Matt and I discuss how top performing companies have clearly defined their competitive advantage.
In order to do this you must break down the silos typically seen in organizations. No matter what your advantage is, the CEO is responsible for driving it throughout the company. This type of rigor, when exhibited, generates above average results.
As CEO, you must be certain about what you do better than your competitors. Get it wrong and you will not hit your revenue growth objectives. Instead, determine your advantage, validate it in the marketplace, and make sure your entire organization is delivering on its promise.
Have expectations gone up and left you wondering if you can make your number? Here is an interactive tool that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate yourself against SBI’s sales and marketing strategy to find out if:
- Your revenue goal is realistic
- You will earn your bonus
- You will keep your job