The Race to Market Are you ever 3 steps ahead of your competition? Are you ever 3 steps behind your competition? Does the best price always win? Does the best delivery always win? Do you customize to often? Are you customer demands unrealistic? Do you lose jobs because competition makes unrealistic promises? Can you afford distribution? Can you not afford distribution? Is your product compared to others as a commodity? Are you truly giving your customers exceptional service? Are you making a living or building a business? Are you making the ROI that you should be?
The Race to Market The Old Strategy: 1. Compete in Existing Market Space 2. Beat the competition. 3. Exploit existing demand 4. Make the value/cost trade off (create greater value to customers at a higher cost or create reasonable value at a lower cost) 5. Align Company’s activities to differentiation or low cost. <ul><li>Find new ways to cut cost </li></ul><ul><li>2. Grow revenue by taking market share away </li></ul>
The Race to Market The Old Strategy: 1. Build a better product. 2. Build it faster than others. 3. Build it cheaper than others.
The Race to Market How do you do it? 1. Six Sigma 2. GE Workout 3. Lean Manufacturing 4. Benchmarking 5. Execution 6. Balance Scorecard 7. Theory of Constraints 8. Business Process Improvement 9. TQM, MRP, ZZZ, etc.
The Race to Market The New Strategy: 1. Create uncontested market space 2. Make competition irrelevant. 3. Create and capture demand Focus on non-customers Create and capture new demand 4. Break the value/cost trade off Seek greater value to customers and low cost simultaneously 5. Align Company’s activities of both differentiation and low cost. <ul><li>Value Innovation that focuses on: </li></ul><ul><ul><li>Utility, price, and cost positions </li></ul></ul>
The Race to Market We need to position a product so that it is without competition? And to do that: 1. It must provides a simple solution 2. Can be easily utilized/operated 3. Can be easily supplied 4. Can be supplemented with additional products? 5. Priced for the masses
The Race to Market <ul><li>Create a Strategy in Four Steps </li></ul><ul><li>Eliminate factors that the industry takes for granted but adds no perceived value to customers. </li></ul><ul><li>Reduce factors well below the industry’s standard to avoid the mistake of over delivering in order to beat the competition. </li></ul><ul><li>Raise factors well above the industry’s standard so your customer won’t have to make compromises. </li></ul><ul><li>4. Create new sources of value that the industry has never offered. </li></ul>Keep it simple, don’t complicate
The Race to Market References BLUE OCEAN STRATEGY How to Create Uncontested Market Space and Make the Competition Irrelevant By W. Chan Kim and Renée Mauborgne Mastering the Complex Sale: How to Compete and Win When the Stakes are High! By Jeff Thull The Prime Solution Close the Value Gap, Increase Margins, and Win the Complex Sale by Jeff Thull
Business901.com Product Launches Develop a launch program using a simple, affordable practical and repeatable process. The Race to Market