Today’s show will demonstrate how to determine which markets to compete in and which markets to avoid. We discuss market selection and the type of sales reps required to compete. 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.
Our guest today is Jim Briles, the Chief Operating Officer of American Global Logistics. AGL manages the supply chain for customers who primarily import ocean freight from Asia into the United States. Jim is the perfect guest to demonstrate how to determine which markets to compete in and which markets to avoid.
Not all revenue is created equal. Hitting the quarterly EBITDA target requires a careful examination of markets. Avoid markets that are dominated by low-value transaction relationships with a low switching cost. Instead gravitate to markets that are better suited for value-based relationships with high switching costs.
The concept of a demand driver is discussed in detail because identifying the drivers will help you select markets. This includes which markets to compete in, and which markets to avoid. Ask yourself the question, what are my demand drivers? The answer will help narrow market segments and help you choose which markets to compete. You want to compete in the markets with strong, healthy demand drivers that have a long remaining life-cycle.
Why is this topic important? Many executive teams tend to focus most of their attention on gaining share in their existing markets. While it is necessary to maintain, and sometimes increase market share, changing your company’s exposure to growing and shrinking market segments should be a major focus. Watch as Jim demonstrates how to determine which markets to compete in and which markets to avoid.
If you would like to spend some time with me on this subject, come see me in Dallas at The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. A visit to The Studio increases the probability of making your number because the sessions are built on the proven strength and stability of SBI, the industry leader in B2B sales and marketing.