With your competitive advantages clearly defined, your team can finalize the Corporate Strategy and hand off the right information to the Product, Marketing, and Sales teams to succeed.

A strong corporate strategy identifies how your team is going to beat the competitors in markets you are competing. If you don’t decide on which competitive advantages you’ll use to reach new audiences, your prospects will decide for you, costing you revenue and control over your product. 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.

 

Here’s what you need to know to define your competitive advantages and make your  number. First, establish how to ensure that you do not suffer from false differentiation.  Second, which of the three competitive advantages do you select.

There’s an easy way to break down your options during this process. There are three main sources of competitive advantage:

 

  1. Price: Your products are offered at a better price than your competitors’ products.
  2. Product: Your products are more enticing or robust than your competitors’ products.
  3. Customer Experience: You establish helpful, in-depth customer relationships better than your competitors do.

     

If you haven’t picked one, your customers will pick one for you: Price. In other words, if you don’t provide a product that’s better than what your consumers are offering, or you don’t ensure for a helpful customer experience, your audience will force you to drop the cost of your product. Because that’s the only pull you’ll have left to reel them in.

 

Don’t put yourself in a position of merely reacting to audience demand. Build a Corporate Strategy that clearly communicates what you’re offering and why it’s better than what your competitors are putting into the market.Here’s how to do it.

 

How do I define my advantages?

In order to figure out which advantages your company should use to make the number, your Corporate team should answer these seven questions:

 

  1. Which of the three sources of competitive advantages should we choose: Price, Product, or Customer Experience?
  2. If we pick Price, how are we streamlining our cost model to deliver our products to market at a price lower than the competition?
  3. If we pick Product, how are we investing in our product so it is superior to the alternatives in a way that buyers value?
  4. If we pick Customer Experience, how are we creating a unique experience that our buyers are willing to pay for?
  5. How have we ensured we do not suffer from false differentiation – differentiation that is not important to the marketplace or is a false presumption of superiority?
  6. How have we ensured we do not suffer from uneconomic differentiation – differentiation that customers are not willing to pay for?
  7. How have we ensured we do not suffer from unsustainable differentiation – differentiation that is easily imitated?

     

With your competitive advantages clearly defined, your team can finalize its Corporate Strategy and hand off the necessary information to the Product, Marketing, and Sales teams. This way, your company’s strategies will be aligned to most effectively hit next year’s sales targets.

 

To answer these questions for your team, come see me at The Studio. Selecting the right markets and identifying the competitive advantage is not easy to do. I can guide you through the process.  The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. Sessions at The Studio are experiential and are designed around the principles of interactive exercises, hands-on innovation, and peer-to-peer collaboration. The Studio is a safe haven for learning and after just a few days clients leave with confidence and clarity on what they need to do to grow revenue and how to do it.

 

The Studio Executive Briefing Center

 

ABOUT THE AUTHOR

Aaron Bartels

Helps clients solve the most difficult challenges standing in the way of making their number.

He founded Sales Benchmark Index (SBI) with Greg Alexander and Mike Drapeau to help business to business (B2B) leaders make the number. The world’s most respected companies have put their trust in and hired SBI. SBI uses the benchmarking method to accelerate their rate of revenue growth. As an execution based firm, SBI drives field adoption and business results.

 

His clients describe him as a consultant who:

 

“Makes transformational impacts on me, my people and my business”

 

“Solves my most difficult problems that to date we have been unable to solve ourselves”

 

“Brings clarity to an environment of chaos”

 

“Has real world sales operations experience making him qualified to advise us on a variety of sales and marketing challenges”

 

“Is able to spot proven best practices that once implemented will make a material impact on my business”

 

“Constantly challenges status quo and compels us to act”

 

“Focuses on execution and driving change to stick in our environment”

 

“Makes good on his promises while enabling our business to realize his projected results”

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