Locking on to Your Competitive
Advantage and Market Position
Bullivant Houser Bailey’s
Emerging Business Group
Seminar Series
February 24, 2010
“The essence of strategy is choosing
what not to do.”
Michael Porter
Catalyst Strategies
Identifying and Catalyzing Growth Opportunities
www.catalyststrategies.com
1
Two “SIMPLE” questions are critical to success
What is the core reason why a
prospect should choose your
product or service?
Your “market promise”
(a.k.a. Point of Difference)
How will your company sustain
higher growth and more
profitability than competitors?
Your “secret sauce”
(a.k.a. Competitive Advantage)
2
Success Story: Ning Market Promise
“Ning is the social platform for the
world's interests and passions online.
Explore and express your interests,
discover new passions, and meet new
people around shared pursuits”
Steps to Define Your
Market Promise:
1.
2.
3
Define your target
Know them…
understand their needs
3.
Define their decision
criteria
4.
Distinguish between the
market ‘ante’ and what
can truly differentiate
5.
Map your competitors
6.
Pick the whitespace that
meets criteria for a
winning market promise
Criteria for a Winning Market Promise
Must be:
Single Minded
Clear
Compelling
Differentiated
Believable
Sustainable
Scalable
Is there one point of difference, versus a collection or fusion of multiple ideas? Is the
point of difference focused on one main problem or idea?
Is it obvious what is being promised? Easy to communicate? No jargon?
Does the promise directly address a critical problem for the target buyers and
influencers?
Can the point of difference be uniquely delivered by your company and not by major
competitors?
Can your company prove the claims in your point of difference?
Can the positioning flex and evolve to continue to be relevant in future? Can your
company own the differentiation over time versus being depend on short term or
narrow advantages in features?
Can this differentiation scale on a global basis (if relevant)?
4
Success Story: Ning Competitive Advantage
Chosen
Customer
Benefit
Value
(to Company)
Attribute
(Product,
Cost, Service,
Distribution etc.)
Steps to Define Your
Competitive Advantage:
Easily build your
own social
network
1.
Start with important
attributes of your
product/service
2.
Distinguish between the
market ‘ante’ and what
can truly differentiate
3.
Define the value to your
company of key
attributes
4.
Select one customer
benefit that comes from
your unique attributes
and value*
Scalable,
repeatable
model
Bullet proof
social
networking
platform
*Don’t get hung up on how your competitors have won (e.g., Facebook)
5
Potential Competitive Advantages
Cost Leadership
Product Characteristic
Differentiation
Product Breadth
Differentiation
Distribution
Differentiation
Niche Market Dominance
Customer Experience
Differentiation
•
Driving costs lower than industry norms based on efficiency, size,
scale, scope
•
Distinguishing products or services from others in the industry in a
compelling way that attracts target customers
Differences include quality, function, features, design
•
•
One stop shop – offering unmatched range of relevant products
and services to target customers
•
Creating distinctive access or availability to products or services via unique
distribution relationships, channels, or capabilities (e.g., direct marketing)
•
Outperforming competitors in a narrow market segment
Advantage can be achieved via segment-specific offerings,
services, servicing levels or model, etc.
•
•
Delivering uniquely streamlined, direct, proactive, consistent
customer experience for critical customers interactions
6
Key to Success: Integrating Your Competitive Advantage
and Market Position
Ning
“market promise”
1.9 Million Ning Networks
40 million registered users
$750MM valuation
Ning
“secret sauce”
7
About Catalyst Strategies
8
Catalyst Strategies
Identifies and catalyzes growth opportunities
Serves technology and services companies
Catalyzes commitment to the actions that
deliver tangible market results
9
Clients
10
Services
Solidify Your
Growth
Strategy
Innovate and
Differentiate
Products
Transform Your
Customer
Experience
11
Accelerate
Marketing
and Sales