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How can you develop a competitive strategy that is tailored to your company's industry needs?

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A competitive strategy is a plan that helps your company gain an advantage over your rivals in the market. It involves identifying your unique value proposition, analyzing your industry dynamics and competitive forces, and choosing the best position and actions to achieve your goals. In this article, we will show you how to develop a competitive strategy that is tailored to your company's industry needs, using a simple framework and some practical tips.

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Sam Eze, Jr., PMP?

Program and Project Management Professional || PM Trainer and Mentor || Managed Services Expert || Management…

1 Define your value proposition

Your value proposition is the core of your competitive strategy. It describes how you solve your customers' problems, what benefits you offer them, and why they should choose you over your competitors. To define your value proposition, you need to understand your target market, their needs and preferences, and how you can meet them better than anyone else. You can use tools like customer surveys, interviews, or personas to gather this information.

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Sam Eze, Jr., PMP?

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If your client is an individual, asking what his preferences are would be a great starting point. The next would be how to tailor your approach to meet, or perhaps exceed his expectations.

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Vincent Burruano

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Developing a thoughtful value proposition is critical to identifying your ideal client. Who can you best help? Too often our value propositions are too broad looking to attract a diverse client base. To be successful, it is often important to fine-tune your approach and be more specific in the areas you can provide value. Become a recognized expert in a few key areas that will distinguish you from others who are trying to attract a broad audience.

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2 Analyze your industry dynamics

Your industry dynamics are the external factors that affect your company's performance and competitiveness. They include the size, growth, profitability, and structure of your industry, as well as the trends, opportunities, and threats that shape it. To analyze your industry dynamics, you can use frameworks like Porter's Five Forces, PESTEL, or SWOT to identify the key drivers and challenges in your industry, and how they impact your company and your competitors.

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Sam Eze, Jr., PMP?

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PESTLE is external, SWOT is internal. It's important to understand how both internal and external factors can affect performance and effectiveness.

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3 Assess your competitive forces

Your competitive forces are the internal factors that influence your company's ability to compete and win in your industry. They include your strengths, weaknesses, capabilities, resources, and culture, as well as those of your competitors. To assess your competitive forces, you can use tools like VRIO, value chain, or core competencies to evaluate how you create and deliver value to your customers, and how you compare and differ from your competitors.

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Sam Eze, Jr., PMP?

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Keep abreast of market trends. Understand how competitors can use them to their advantage, and have an edge over you. Then, prepare accordingly

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4 Choose your competitive position

Your competitive position is the way you want to be perceived and differentiated by your customers and competitors in your industry. It reflects your value proposition, your industry dynamics, and your competitive forces. To choose your competitive position, you need to decide whether you want to pursue a cost leadership, differentiation, or focus strategy, and how you want to target your market segments. You can use tools like positioning maps, perceptual maps, or segmentation criteria to help you with this decision.

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Sam Eze, Jr., PMP?

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In using segmentation criteria, try to consider its application to local circumstances, especially as it relates to your organization. In geographic segmentation, an organization located in the north might not want to segment its market division based on influences in the south.

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5 Implement your competitive actions

Your competitive actions are the specific steps you take to execute your competitive strategy and achieve your competitive position. They involve setting your objectives, choosing your tactics, allocating your resources, and measuring your results. To implement your competitive actions, you need to align them with your value proposition, your industry dynamics, and your competitive forces. You can use tools like SMART goals, action plans, or balanced scorecards to help you with this process.

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Sam Eze, Jr., PMP?

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Target areas where you have an advantage over competitors. For example, take note of customer complaints on a new product launched by your competitor, and immediately release a product that addresses the need, possibly before your competitor realizes it

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6 Review and update your competitive strategy

Your competitive strategy is not a static document, but a dynamic and evolving plan that needs to be reviewed and updated regularly. You need to monitor your performance, feedback, and environment, and adjust your strategy accordingly. To review and update your competitive strategy, you need to use data and evidence to evaluate your outcomes, identify gaps and opportunities, and make changes as needed. You can use tools like KPIs, dashboards, or benchmarks to help you with this task.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you develop a competitive strategy that is tailored to your company's industry needs?

1

2

3

4

5

6

7

1 Define your value proposition

2 Analyze your industry dynamics

3 Assess your competitive forces

4 Choose your competitive position

5 Implement your competitive actions

6 Review and update your competitive strategy

7 Here’s what else to consider

Management Consulting

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How can you develop a competitive strategy that is tailored to your company's industry needs?

1

2

3

4

5

6

7

1 Define your value proposition

2 Analyze your industry dynamics

3 Assess your competitive forces

4 Choose your competitive position

5 Implement your competitive actions

6 Review and update your competitive strategy

7 Here’s what else to consider

Management Consulting

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