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Competitive Positioning
That is, they know how they intend to compete either against other businesses within their industry for a share of consumers' wallets (market share strategy) or against other industries, again, for a share of consumer's wallets (market creation strategy).
Strategy is concerned with the position that a business chooses to occupy in an industry. The factors that determine strategy are, industry structure and the competitive position a business adopts.
Typically, people in small and medium-size businesses think of strategy as only being relevant to large organizations. Nothing could be further from the truth. Big businesses were all once small. They were little more than a picture (a vision) in the mind of their founders or the people primarily responsible for taking them to new levels.
Five forces of competition determine industry or market economics. That is, they determine industry cost structure and prices and therefore profitability.
The 5 forces of competition are:
- The threat of entry
- The bargaining power of suppliers
- The bargaining power of buyers
- The intensity of indirect competition from substitute or alternative products
- Industry rivalry
People who understand the principles of business strategy make better decisions. It's that simple. The flip side of that is also true; strategy-focused people typically don't make poor decisions and if they do, they realize it quickly and respond accordingly.
We can work with you to analyze your business and your current business strategy against these five forces, and help you develop a strong competitive strategy for your business.