domingo, 27 de noviembre de 2011

Strategies for Competitive Advantage


 
Strategies for Competitive Advantage

To be successful in today’s businesses, our companies must become oriented to competition. We must pursue the right strategies to avoid the strengths of the competitors and seek for the weak points they show.  Then develop marketing strategies to launch attacks against those weak points.  Club IT offers to their customers the following: live music, DJ's, dance in a huge space and amenities that suits the customer’s lifestyle. The primary clientele consists from friends, and they seek to build a regularly community that meets at their club.  After researching all of the strategies for competitive advantage, I decided to develop the differentiation strategy for Club IT specifically. The differentiation strategy is an integration of action designed to produce and deliver services that customers perceive and receive as being different in ways that are important to them. 

It turns us to sell no standardized services to customers with unique, special and particular needs. The concept of being unique of different is more important today than it was twenty years ago.  The secret to successful marketing and competition is differentiation.  Competition and over-communication are key features of the new economy and marketing strategies. A market that uses to be national with regional-local companies competing for all kinds of business markets has become a universal with everyone competing for everyone's business everywhere. With the strong competition markets today are driven by obligation, the targeted customers have many choices, all of which can be supplied in instants. Choosing among multiple selections is always based on fortress and differences, implicit or explicit, so we have to differentiate in order to give the customer reasons to choose our product or service. Then, "differentiation is one of the most important strategic and tactical activities in which companies must constantly engage. It is not discretionary", (Trout, Jack – Rivkin, Steve, 2000-2008). No one gets success by copying or imitating competitors.   The concept of being different is far more important today than it was before. In the emerging era of  over communication, people are surrounded by options to decide, information choices, ideas, products, and services. In this universe of choices, most clients have troubles considering a decision about products or services. Choosing among a variety of options is always based on differences.  Create differentiation within our own services means, for example, if we have a variety of services to offer, we may have identified our differentiations already. 

Common examples of differentiation for products may be based on color, size, speed, components, combinations or accessories. Common examples of differentiation for services include speed, performance, quality, responsiveness, and availability. If we are in the unique position of having only one product or service to offer to potential customers then we should consider accessories, partners or other options to create a variety of levels from the point of view of our future customers. If all else fails, we can offer different levels and options of services or goods.  There are many ways to set our club, products, or services apart. Our differentness does not have to be related to an specific product.  It can be anything that separates us from the competitors. The trick will be to find that differences and then use it to develop a strong and interesting benefit for our potential clients. Claims of difference without supporting evidences are just that; claims. Consumers and clients are skeptical and smarter than the marketers think. 

We must have the proper credentials to support our differentiating idea if we want to build a logical supporting argument for our differences. It's like being inside a court of opinions. If we have product or service differences, we should be able to demonstrate that those differences, which in turn, become our credentials and references. Marketing is an operation of perceptions, not services. Better services don't win. Better perceptions tend to be winners. Truth will not be out unless it has help along the trip. We cannot over communicate our differences.  Every aspect of our marketing plan should reflect it. A real and strong differentiating idea will be a powerful  tool of motivation that results in an effective method to gain clients.  Motivation is getting others to do things because they want to do it. To motivate others is one of the most important management goals. It includes the abilities to understand what drives people to encourage, set examples, to develop, obtain feedbacks, and provide a just reward.

"Motivation is about cultivating your human capital. The challenge lies not it the work itself, but in you, the person who creates and manages the work environment”. (Stevens, 1996-2010).  Success comes from the people. For new owners who know how to incentivize the people and enforce their good attitudes, the art of motivating is one of the success secrets. If we understand what fulfills people, we have at our service the most powerful tool for dealing with them to get and achieve successful results. "Motivation and power are so closely linked together that one can say there is power in a motivated person". (Denny, Richard, 2010).

References

Denny,Richard, 2010, Motivate to Win, Retrieved October 2, 2010 from http://www.denny.co.uk/content/training-resources/books.php.

Stevens, Mark, 1996-2010, EXTREME MANAGEMENT: What They Teach at Harvard Business School's Advanced Management Program, Retrieved October 2, 2010 from http://www.bookreporter.com.

Trout, Jack with Rivkin, Steve, 2000-2008, Differentiate or Die, John Whiley and Sons, Inc., Hoboken, New Jersey.

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