Helping startups get further, faster.

As entrepreneurs it’s easy for us to get caught up in the excitement of a new idea, without paying due respect to the competition. We have a tendency to think of our product as the “only one of it’s kind” and in a market, “where no one else is playing”.

Rarely is this true, but that doesn’t mean the idea won’t work.

Rather than be disheartened when you find a competitor, it should be encouraging, as it demonstrates there’s already a demand for the product or service you’re about to deliver.

Competitors also provide a rich source of information about the market you’re about to enter and allow you to assess the strengths and weaknesses of existing offerings in this market.

The trick to developing a competitive strategy is (1) knowing who to compete against and (2) how you intend to compete.

Once you’ve identified who you’re really competing against, you now have a much higher chance of success rather than convincing the market that you’re an entirely new proposition.

The next step is to work out a basis for competing. Will you offer friendlier service, longer operating hours, more technical support, a cooler brand, a better website, more interesting packaging, better warranties, an easier way to purchase etc?

One to be wary of however, is price! Unless you have the economies of scale that Bunning’s or WallMart competing on price is a dangerous tactic. If a competitor undercuts you, then you’re already out of business. A better strategy is focused on a unique benefit.

Luckily there’s no shortage of unique benefits you can deliver. A great tool for working out – how you’ll compete is the Buyer Utility map.

The model identifies 6 stages a buyer experiences when they purchase a product or service, and suggests 6 alternate ways to improve that experience, in all, 36 individual ways to improve a customers experience, or an unlimited combination of multiple benefits. As shown below:

Source: Knowing a Winning Business Idea When You See One. Harvard Business Review, Sep 2000.

To discuss how to apply this model to your business or idea, and begin capitalising on your unique benefits feel free to drop us a line, or call 03 9016 2609 to book a free one hour consultation.