Page 7 - The Alp McNamara Downturn Survival Kit

7
Practical Strategies
We have set out a few thoughts below regarding the types of practical strategies that you can work on while you contemplate our future world!
8. Sharpen your competitive edge.
If the world were perfectly homogeneous, if all businesses were the same and if goods and services offered were identical to each other, on what basis would they compete? Price. And price alone.
Differentiation is the basis by which businesses endeavor to distinguish their offering from their competitors offering. The greater the uniqueness, the more compelling the offer, the greater the price that can be demanded by the supplier. And therefore margin. We love margin.
Sure, sounds simple in theory but what constitutes the basis for a set of unique offerings that can build into something special? This can be defined as a business’s Unique Competitive Advantage.
Typically, the uniqueness comes from a combination of:
• Geographicaledge.Locationofbusiness,outletsorareas.Buylocalor Australian made are examples.
• Technologicaledge.Yourabilitytoadaptandutilisetechnologytorun your business or reach your clients better than your competitor.
• Know-howedge.Thewayyoudothingsreflectthehistoryand learning from many years. Competitors can be blind to the subtleties and benefits that arise from the way you do things. Easy to overlook.
• Specialisationandfocus.Theabilitytobegoodatonething(andstick to it) has been the secret to success for many of the world’s greatest businesses. It is all too easy to wander off on some other path.
• ProcessesandProcedures.Businessesthatdrivetheirsystems generally enjoy associated long-term benefits of knowledge, control and management of the business. Customers see them as more consistent, reliable and empathetic to their needs.
• Research&Development,IPandQuality.Eachofthesearekeysto building barriers that set your business apart from competitors.
• Culture.Anempoweringandpositivecultureunderpinsthe performance of an organisation’s people and enables them to work towards common goals. It is a highly valued and treasured edge that needs to be nurtured by leaders.
Look at every attribute that contributes to make you unique. Explore ways to enhance and exploit all of them.