Being a fan of Michel Porter and his book on Competitive Strategy, we learn that Porter suggests that a business must choose one of three business strategies to enable them to succeed:
• Overall Cost Leadership
Porter subsequently added five industry forces to his list. Effectively, we now have Porter’s new list of strategies for today’s changing world:
• Threat of new competitor entry
• Competition among businesses
• Customer power
• Supplier power
• Substitute products
But just because your business has selected a strategy does not mean that this is set in stone. To ensure that your company becomes or remains a ‘dominant player’ in your market requires decisive action. Now is the time to act. It is critical to Create Strategic Advantage for your company.
We have emphasized to our clients that their business must take into account a key Porter strategy, that of ‘customer power’. The customer is the new leverage point, representing a power shift, through the new dimension of social media. With this change, the dynamics of customer engagement and dialogue changes forever. This change is an integral part of creating strategic advantage.
We view strategic insight as a viable business strategy. As we see it, insight is a combination of customer knowledge and business imagination.
Businesses need a focused sales and marketing effort to increase their sales. Lack of growth usually indicates that there few sales processes to attract or find prospects and that there are limited marketing initiatives. They find it difficult to grow their business beyond their current revenue level due to lack of appropriate sales processes or resources, making it essential for them to ‘Connect with their Customers’.
We recommend 5 “To Do’s” critical to successfully connect with your customers:
• Identify, attract and retain
• Develop insights into need
• Provide ‘value’ services
• ‘Marketing with Memory’
• Service-first attitude
All customers matter! And all businesses need customers; yet most have no clear strategy to understand or to engage in a relationship that meets their customer’s needs. Businesses need to “Connect”.