Creating Competitive Advantage in Technopreneurship.pptx

Creating Competitive Advantage.

1. Creating Competitive Advantage TECHNOPRENEURSHIP - GROUP 4

2. Agenda 2 Creating Competitive Advantage Introduction Types of Competitors Product Differentiation Product Positioning Q & A

3. Introduction

4. Competitors: How to Identify? 4 Creating Competitive Advantage “We help you stay ahead of the competition!” This is a promise that Business to Business companies make all the time to their potential clients. But, when you dig down deep, do you really know and understand who your competition is?

5. Know your primary competitors 5 Creating Competitive Advantage Is it possible to achieve success by ignoring the competition and doing your own thing? Your competitors are walking the same road you want to walk on to succeed in business. They are certainly doing some things right and some things wrong. By studying them, you can get a masterclass on what to do and what to avoid in your business niche. Yes, but it’s a risky road.

6. Know your primary competitors 6 Creating Competitive Advantage By knowing your competitors you can find out where you can stand out among the crowd. By looking at your competitors, you can save a LOT of time, money, and heartache. AND you can use your competition as a source of ideas.

7. Classes of Competitors

8. 1. Direct Competitors 8 High-impact sales strategies competitors who are directly vying for your customers These are the most immediate and obvious rivals. They offer the same or very similar products or services to the same target market. Their success often comes at the direct expense of your market share, and vice versa.

9. 2. Indirect Competitors 9 High-impact sales strategies Businesses that are in the same category, but they sell different products and services than you They are competing for the same customer budget and attention, even if their offerings are not identical. vs

10. 3. Potential Competitors 10 High-impact sales strategies Competitors who do the same thing that you and target the same kinds of customers but aren’t selling in your market area and aren’t likely to do so. They could be your competition if they decided to enter, but either don’t have the infrastructure or have chosen to ignore your area

11. 4. Future Competitors 11 High-impact sales strategies Like potential competitors, but they’re much more ready and likely to enter your market This might be the larger national company that hasn’t entered your local market yet. Think of them as between potential and direct competition.

12. 5. Replacement Competitors 12 High-impact sales strategies Those who provide an alternative to the services that you offer that solves the same pain points If there is more than one way to solve the problems you solve with your business, you may have a replacement competitor.

13. Gathering Keywords

14. Identify Keywords 14 Creating Competitive Advantage Nowadays, businesses focus on digital marketing to advertise their businesses. The first step is to identify the keywords that people use to search for businesses like yours or are related to the problems that you solve.

15. 15 Creating Competitive Advantage People search on three types of queries: Navigational – They want to find a particular site Informational – They want a particular piece of information Transactional – They want to do something through the web (e.g. make a purchase)

16. So How Do I Identify My Competitors?

17. 17 Creating Competitive Advantage First Page of Google Search and Bing Social Media and Forums Market Research Methods in Identifying Competitors

18. 18 Creating Competitive Advantage The simplest way to start is by performing searches for your business-related keywords. Type in phrases that a customer would use to find a business like yours, such as "[your service] + [your city] First Page of Google Search and Bing

19. 19 Creating Competitive Advantage Social Media: Search for your keywords on platforms like Facebook, Instagram, and Twitter. This helps you see who's building a following and engaging with customers. It can also reveal businesses that may not have a strong website but have a powerful social presence. Forums: Websites like Reddit and Quora are places where people ask questions and discuss solutions to their problems. Searching for your keywords here can show you which businesses people are mentioning or recommending, giving you a glimpse into word-of-mouth competition. Social Media and Forums

20. 20 Creating Competitive Advantage Beyond simple online searches, you can conduct more in-depth research to identify competitors that aren't immediately obvious. Companies hire market researchers and do surveys to discover their list of their client’s competitors and where they fit into the ecosystem Market Research

21. Choosing Your Competition

22. 22 Creating Competitive Advantage To effectively compete in the online space, you need to focus on the competitors that are most relevant and pose the greatest immediate threat. These are typically the businesses that rank just above yours on search engine results pages (SERPs). By analyzing the strategies of these specific competitors, you can gain actionable insights to improve your own online presence and climb the rankings.

23. 23 Creating Competitive Advantage Actionable Insights: It's easier to figure out how to outrank the businesses on the same page as you than it is to analyze a competitor that is ten pages ahead. A small tweak to your website's content, keywords, or backlink profile could be the difference between ranking #5 and #4. Avoid Overwhelm: The digital landscape is crowded. Trying to analyze every competitor, from a large national brand to a small local startup, is inefficient and overwhelming. By focusing on your immediate rivals, you can prioritize your efforts and see tangible results faster. A majority of searchers trust Google, Bing, and other search engines to deliver the best and most relevant results. The higher a business ranks, the more likely a searcher is to click on its link. This means the businesses ranked just above you are stealing potential customers.

24. Identifying Competitors

25. 25 Creating Competitive Advantage Potential & Future Competitors: Conduct market research to learn from their success and adopt winning strategies. Indirect Competitors: Educate customers on your unique value by targeting specific keywords that highlight the differences between your services. Replacement Competitors: Make a clear case for why you are the better option by emphasizing how you save time, money, or offer a superior experience. Actionable Insights from Competitors

26. Competitive Advantage

27. WH A T IS C OM P E T I T IVE A D V AN T A GE? Anything that gives a company an edge over its competitors, helping it attract more customers and grow its market share.

28. WH A T IS C OM P E T I T IVE A D V AN T A GE? This refers to factors that allows company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to market rivals Attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, the intellectual property, and customer service.

29. The purpose of having a competitive advantage is to distinguish a company from its competitors by offering something different and of superior value to its customers.

30. FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE advantage occurs when a business is able to offer the same quality product as its competitors, but at a lower price. 1. COST LEADERSHIP

31. FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE DIFFERENTIATION Business that differentiate themselves typically look for one or more marketable attributes that they have that can set them apart from their competitors FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE

32. FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE DEFFENSIVE STRATEGY it allows the business to further distance itself from its competition by, in some sense, maintaining a competitive advantage it has gained FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE

33. FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE STRATEGIC ALLIANCES are more along the lines of joint ventures that businesses use to pool resources and gain themselves exposure at the expense of other competitors not in the alliance FOUR METHODS OF C OM P E T I T IVE A D V AN T A GE

34. MAIN T AINING C OM P E T I T IVE A D V AN T A GE INVEST IN YOUR EXPERTISE Choose a specific expertise and focus on developing it. Rather than trying to be the best at everything, try to be the best at one thing (or two or three, max).

35. 2. PICK YOUR BATTLES While it's important to choose your areas of expertise, it's equally as important to choose whom you work with. The idea is to work not just with any client, but only the ones you know you are best MAIN T AINING C OM P E T I T IVE A D V AN T A GE

36. COMPETE AGAINST YOURSELF you should challenge yourself to improve each day learn from your successes and failures so you can double down on your success and maintain a sharp MAIN T AINING C OM P E T I T IVE A D V AN T A GE

37. SHARE YOUR SECRETS AND SUCCESSES sharing some of your valuable secrets can be a great strategy to force you to develop new ones MAIN T AINING C OM P E T I T IVE A D V AN T A GE

38. KEEP INNOVATING this gives you the confidence and the intuition to adjust each time you face a new challenge, because things never happen the same way twice you always need to be able to adapt to new knowledge MAIN T AINING C OM P E T I T IVE A D V AN T A GE

39. PRODUCT DIFFERENTIATION

40. WHAT IS PRODUCT DIFFERENTIATION?

41. "the process of distinguishing a product or offering from others, to make it more attractive to a particular target market vis-a-vis competitors' products as well as a firm's own product offerings"

42. Offered under different brands by competing firms, products fulfilling the same need typically do not have identical features. The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum Within firms, product differentiation is the way multi-product firms build their own supplied products' range At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation. Launching new goods with entirely new performances is a radical change, often leading to changes in market shares and industry structures In an evolutionary sense, differentiation is a strategy to adapt to a moving environment and its social groups

43. DIFFERENTIATION OF PRODUCTS

44. TYPES OF PRODUCT DIFFERENTIATION

45. TYPES OF PRODUCT DIFFERENTIATION Ideally, a product differentiation strategy should demonstrate that the product can do everything the competing choices can but with an additional benefit that is exclusive to that product. Below are a few of the most common strategies employed to differentiate a product or service. Price Price can be used to differentiate a product in two ways. Companies can charge the lowest price compared to competitors to attract cost-conscious buyers b. Performance and Reliability Products can be differentiated based on their reliability and durability. c. Location and Service Local businesses can differentiate themselves from their larger national competitors by emphasizing that they support the local community.

46. VERTICAL PRODUCT DIFFERENTIATION VS. HORIZONTAL PRODUCT DIFFERENTIATION There are two strict forms of product differentiation: horizontal and vertical. In some cases, however, a consumer's choice in a purchase may be a mix of the two.

47. Vertical Differentiation An example of vertical differentiation is when customers rank products based on a measurable factor, such as price or quality, and then choose the most highly ranked item. Although the measurements are objective, each customer chooses to measure a different factor. Horizontal Differentiation An example of horizontal differentiation is when customers choose between products based on personal preference rather than an objective measurement. Mixed Differentiation More complex purchases tend to consider a mix of vertical and horizontal differentiation.

48. BENEFITS OF PRODUCT DIFFERENTIATION A differentiated product can increase brand loyalty and even survive a higher price point. If a product is perceived to be better in some way than its competitors, consumers will consider it worth the higher price. Differentiation marketing can help companies stand out when a product isn't perceived to be much different from a competitors.

49. WHY IS PRODUCT DIFFERENTIATION IMPORTANT? Product differentiation is important because it allows different brands or companies to gain a competitive advantage in the market. If differentiation were unachievable, the bigger companies with economies of scale would always dominate the market because they can undercut smaller producers in terms of price. Product differentiation is also a way to control costs for the consumer by maintaining a competitive market.

50. DEFINING POSITIONING AND DIFFERENTIATION Positioning is a strategic process that marketers use to determine the place or “niche” an offering should occupy in a given market, relative to other customer alternatives. When you position a product or service, you answer these questions: Place: What place does the offering occupy in its market? Rank: How does the product or service fare against its competitors in the areas evaluated by customers deciding what to buy? Attitude: How do we want customers to think about this offering and the benefits it offers them? Outcomes: What must we do to ensure the product or service delivers on the positioning we select? Marketers use the positioning process to identify the distinctive place they want a product or service to hold in the minds of a target market segment. Effective positioning is always aimed at a specific target segment. In fact, positioning tailors the generally focused value proposition to the needs and interests of a particular target segment. Positioning can be subtle and hard to detect, but it can also be easy to spot when it conforms to your perceptions as a consumer. Perhaps one of the following positions appeals to you:

51. Differentiation is closely related to positioning. Differentiation is the process companies use to make a product or service stand out from its competitors in ways that provide unique value to the customer. Differentiation identifies a set of characteristics and benefits that make a product different and better for a target audience. Ideally these qualities are things that: Customers value when they are evaluating choices in a purchasing decision, and 2. Competitors cannot easily copy. When both conditions exist, the offering is more attractive to target customers. Differentiation is at work any time you’re choosing between two products in the same category.

52. Strategic Positioning & Differentiation Understanding how to effectively position products and services in the market is crucial for competitive advantage. This presentation explores the interconnected strategies that define market success.

53. The Core Connection Effective positioning is built on differentiating qualities that make a product superior in the target segment's mind. Positioning and differentiation are proactive strategic activities, not passive outcomes. Target Segment Focus Tailoring offerings to specific customer needs. Competitive Edge Highlighting what makes us better. Proactive Strategy Shaping market perception intentionally.

54. Crafting Your Value Proposition "This is the compelling reason why the target segment should buy the product." Positioning culminates in a clear, market-focused value proposition. It shapes key elements of the marketing mix, from features and messaging to pricing and distribution. Product Features Communication Messages Pricing Strategy Distribution Channels

55. Retail Giants: Distinct Positioning Walmart Positioning: Wide selection of products at the lowest prices. Differentiators: Huge selection, consistently low prices. Target Positioning: Trendy, fashionable products at reasonable prices. Differentiators: Continually refreshed, on-trend product selection. Each retailer carves a niche based on factors important to their target segments.

56. Macy's & Customer Loyalty Macy's Positioning: Preferred destination for upscale brands and current fashions. Differentiators: Broad selection of most-wanted, upscale brands; engaging shopping experience. Building Loyalty Walmart customers value low prices. Target shoppers love browsing new trends. Macy's patrons appreciate an elegant, upscale experience. These strategies define each chain's unique strengths in customers' minds.

57. The Critical Role of Positioning 01 New Product Launch Helps marketers and customers understand how a new offering fits into existing choices. 02 Clarify Fit Makes claims about why customers should consider it over alternatives. 03 Product Life Cycle Useful at any stage to clarify differentiation and preference.

58. Anatomy of a Positioning Statement A concise, one-sentence statement identifying the target market and desired brand perception. 1 Target Market 2 Brand Name 3 Key Differentiators 4 Product Category 5 Reasons to Believe

59. Credible & Convincing Positioning Positioning statements must be statements of truth, reflecting customers' actual experiences. If not, they will fail to resonate. Effective positioning is credible, convincing, and based on qualities that genuinely matter to customers. Irrelevant claims will lead customers to competitors.

60. Tailored Positioning: JetBlue Example The same product can be positioned differently for various market segments, recognizing diverse customer priorities. High-Value Leisure Travelers Focus: Attractively priced airfare and packages to fun destinations, comfortable flying. Mixed-Wallet Customers Focus: Competitively priced, convenient flying with expedited security and flexible fare options. JetBlue highlights differentiating qualities most attractive to each segment.

61. Decoding Market Structure Market structure classifies industries by their degree and nature of competition for goods and services. It's defined by factors influencing company behavior and outcomes. Buyers & Sellers Negotiation Ability Product Differentiation Entry/Exit Ease Popular types include perfect competition, oligopoly, monopoly, and monopolistic competition.

62. Quote “If a company advertises a product for a price that's lower than a similar product from a competitor, that company is likely to have a competitive advantage. The same is true if the advertised product costs more, but offers unique features that customers are willing to pay for.”

63. Q & A We will now open the floor for questions.