Once You Know How Your Industry Competes, Then You can Redefine Your Business to Make the Competition Irrelevant.
By completing the Strategy Canvas (In The Blog Previous) You will now have a picture of your business and competitors and as a result, what you compete on.
Then when you look at what your business competes on, who it’s competitors are and how well you are doing you will start to build up a picture of what it is your “industry” competes on. What Your “Industry” Competes on are the accepted norms that define the industry set boundaries for competition and market share.
Most customers don’t value what the industry values. This is YOUR Opportunity.
The problem you have is that what you compete on and what your industry values is probably not what the customer values! This is especially true for long-established businesses.
Your mission is to find out what the customer truly values, then change your business to make it customer-centric. Not just for current customers but also your NON Customers (People who don’t currently buy from you). Blue Oceans of demand are made up of customers from your existing market and those from outside of your market.
The reason you can target people outside of your current market is that the boundaries of your industry have been set by the industry, NOT the customer (or Non-customer as the case is likely to be).
The Four Proven Steps to Creating Uncontested Market Space for YOUR Business!
The Framework below is your four doors to possibility, it’s focus is on redefining what you compete on based out of your strategy canvas.
Fill out the framework with the details as described so that you can begin to strategize how you are going to create an uncontested market space.
What aspects of your business should be reduced WELL BELOW the market place’s standard? – This is what your customers and non-customers see little value in. You might see value in it but it is an assumption to think that the customer sees value in it and as such you need to figure out what you are going to reduce well below industry standards.
What aspects of your business that the marketplace takes for granted are you going to ELIMINATE? What does your industry do, that the customer does not care about? If your customer doesn’t care then chances are, you are spending money (profit) on things your audience of customers and non-customers has absolutely no interest in. The more you can eliminate, the less your costs are, the less your costs are the lower the end cost to the customer without decreasing value to them!
What aspects should be raised WELL ABOVE the marketplace standard? Many industries don’t pay attention to what the customer really values about what they do. Most make assumptions that their approach to business is just how the customers (and non-customers) like it. However, history and research have shown us that most of the time these things we don’t value as industry players are EXTREMELY valuable to the Customer!
What aspects of your business are you going to CREATE that your current marketplace has never offered? You have an opportunity here to create new things that are not offered in your industry to customers and non-customers. This is Value Creation where you create only new things that are of value to the customer. If the customer doesn’t value it, then don’t create it. This Value Creation enables you to open up new oceans of demand that you never thought existed.
Industries compete in boundaries set out by industries, not by customers and as a result of this most industries never see the kind of demand that they could for their businesses.
If you want to expand your business and create a profitable future you need to redefine what your company competes on and in doing so, redefine the industry normals that are holding you back from success.
Go back to my blog on the strategy canvas, map out yours and your competitors then come back here and start redefining your industry based on the four doors framework to success.
The Finish. DFTBA.