Effective Business Strategies to Win the Competition

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Effective Business Strategies to Win the Competition

Currently, business competition is getting tougher, so it must be dealt with in a healthy manner and accordance with existing regulations. The existence of competitors or competitors in a business is normal. What needs to be done in winning the competition is to think and implement a special strategy so that consumers can switch to using your product instead of competitors. There are several effective business strategies that you can do to be able to win the competition easily. What are these strategies? Check out the complete information below.

Get to know the term strategy in business

Before knowing some important things that can be done in developing an effective business strategy and winning over competitors, you should first understand the terms business strategy. A business professor from Harvard Business School, Michael Porter, fundamentally explains the twofold strategy, namely doing what other business people do (more economically). And do things that other business people can’t. Both of these things for Michael have a great chance of being successful when applied. Point one means competing on the price aspect with competitors. While the second point, it could be more economical or not. In essence, according to Michael, the strategy is when a company can only achieve success when it has a unique position in its marketplace.

Then the professor of management studies at McGill University Henry Mintzberg in Montreal, Canada, described the strategy in the 5Ps, namely Plan, Ploy, Pattern, Position, and Perspective. The fundamental difference between the two views in elaborating strategy is that Michael’s approach feels more rigid and planned. Meanwhile, Henry’s view provides more room to learn, change, and adapt to the dynamics that occur in business. 5 effective strategies can be applied so that the business that is being worked on can continue to grow, namely:

1. Growth Strategy

Growth strategy means constantly introducing new features from existing products. Often companies are required to modify or be more innovative to continue to be competitive in their industry. If not, customers will run to competitors’ products that offer more sophisticated technology. Not only large companies, MSMEs can also adopt this growth business strategy. Sometimes, a company can find a new market for their product by accident. For example, a dab soap company conducted market research and the results showed their products were most popular with factory workers. That way, companies don’t need to focus on selling their products to large retailers but can focus on selling them in small shops or retail around factories or industrial areas.

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2. Product Differentiation Strategy

Product differentiation strategy is one of the most effective business strategies for MSMEs. Through this type of business strategy, companies can explore strategically the factors that differentiate products and services from competitors. The differentiating value in this strategy does not have to necessarily make the company spend more to capitalize it. Product differentiation can be born from how to do a business model, how to make a product, or apply an approach to services. And all of that does not have to incur additional costs if in-depth research is carried out carefully and more strategically.

3. Pricing Strategy

Pricing strategies often involve applying higher product prices than competitors, especially when it is in the initial product introduction phase. MSME players can use this strategy and turn it into an accelerated motor for reversing production capital and advertising that might have been done if it was implemented successfully. However, don’t forget to make sure that you do have something special on your product or service when implementing this strategy. If you are in a market environment where there are not many players or even you are the only ones there, then this strategy can be effective. Because customers will only see your brand.

4. Acquisition Strategy

Business people who have large enough capital can use this acquisition business strategy. Acquisition business strategy means buying one of the companies and/or additional product lines from an existing product. The advantage of this strategy is that with large capital, a company can be more flexible in assessing the business potential of the company to be acquired according to the vision of the company that owns the capital.

5. Content Strategy

In this increasingly sophisticated digital era, content strategy is an effective business strategy that must be carefully developed and implemented properly. When your business uses a clear business strategy through content, your content will work efficiently. This is because the content being developed will be more specific. This content strategy will at least involve developing blog content, email marketing, and activating social media that is relevant to your business. One of the most important aspects of this strategy is not only to produce and distribute content, but you must also be responsive to every interaction that occurs from each content.

How to Deal with Business Competition

1. Offer Competitive Prices

The price offered for your business product or service is not far from competitors’ prices. Product prices that are much higher than the market price will be difficult to develop a managed business. Unless the business you are building has a target market of the middle to upper class with the support of luxurious facilities and so on.

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2. Don’t Drop Competitors

Do not make a statement or issue an opinion that brings down competitors. If a customer entices you to reveal bad things about your competition, try not to help. Please answer reasonably, as long as you don’t care or seem indifferent to the customer’s heart.

3. Providing Good Service to Win Business Competition

Starting from making service SOPs and providing training to all your employees. Ask your employees to serve customers well, starting with a smile and ending with a smile again.

4. Expand your target market

The importance of expanding the market is like adding product types to planning new target markets. For example, if all this time your target is only teenagers, producing or adding products that are often used by housewives can be done to expand the market.

5. Do the Right Promotion

Before choosing the type of promotion for your business, research competitors first.

After understanding various effective business strategies, now you don’t need to hesitate to run and manage a business. With the right strategy, you can be sure that the business you are in will find it easier to achieve success.

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