How Manufacturing SMEs Can Compete With Big Businesses? 5 Techniques To Follow

Competition is prevalent in all kinds of businesses and it never stops.

It can be incredibly challenging for manufacturing SMEs to compete with the larger businesses, particularly when they are operating in a competitive market.

While it will always be difficult to compete with businesses that have greater resources, budgets and brand reputation, there are a few ways in which a smaller manufacturer can compete at a higher level and with larger brands.

So, if you are looking to compete with the larger brands in your market then read on to find out how you can do this-

1. Provide Excellent Customer Service

One area in which large manufacturing companies often struggle is customer service, because it is a much larger company with a bigger staff and more customers.

As a smaller brand, you can focus on each individual customer and form an important connection which will be vital for retention while also improving brand reputation. You should also provide a few options of contact, including:

• Phone
• Email
• Live chat
• Social media

It is also helpful to seek feedback from your existing customers so that you are able to show that you value their opinion and then make improvements to your operations should you learn how it can be improved.

2. Invest In Staff

It is impossible to compete if you do not have a team of skilled, hardworking employees.

But sometimes it also is possible that your team is skilled but due to the shortage of appropriate business tools for their business they are not able to perform well.

This means that although it is important to find right people for the job, you should also focus on how you can keep present employees engaged through training, right business tools, development opportunities, providing a good work-life balance and comfortable working conditions.

3. Outsource

While it is important to have a team of skilled employees, you might also find it beneficial to outsource certain areas of the operations to experts/specialists.

This can lighten the load for your team, and it is cheaper than hiring more staff and it allows you to find experts to complete the work.

4. Keep Product Prices Reasonable

Reasonable pricing of its products is an important part of any business. Many researches suggest that a good pricing strategy has always been effective in the market.

No matter how busy you are, one of your objectives should always be to monitor the pricing strategy of your competitors so that you gain a competitive edge. To find time for this if needed you should automate other mundane business processes like data entry.

You should also keep in mind that offering an unreasonably low price is also not a smart move. It is not compulsory that you will get clients by lowering the value of your product when compared to your competitors. It hinders your ability to attract the right audience and grow as a business. So taking data driven decisions is most crucial.

5. Upgrade Equipment

In order to compete with the larger manufacturing companies, you will need to run a highly efficient operation and use the best equipment which will deliver the best results. Now most businesses in your shoes think of investing in ERPs as the next goal. But ERP implementation not only is difficult but is a slow process (2 years approx. ), something that your business cannot afford. So instead of ERP you should look look for a solution that is easy to use and is low on investment, like TranZact .This will help you to streamline and improve your business processes so that you can compete at a higher level.

Way Forward

It will always be hard for small manufacturing businesses to compete with the bigger brands in their industry, but it is not impossible.

These are some of the more effective strategies for competing with much larger brands and, when combined together, should deliver noticeable results and help you make your manufacturing business stand out.