Small businesses are established in response to market demand for a particular product or service. So, the question is, what happened when that demand slows or stops? What happens when a new and improved version of your product is introduced down the road?
The answer is this: You must innovate your business and offer extraordinary value by creating a “market dominating position.”
Every single choice you make when buying a product or service is going to represent a point of differentiation between one company and their competitors. For example, do you know why Dominos became a billion dollar company in a super crowded market in just a few years? It’s because they offered the same pizza as all of their competitors–they self-created a dominating market position, which was fast pizza specifically for hungry college students.
So, what makes your business different from your competitors as perceived by your targeted prospects and customers? The answer for many small businesses is the price.
Sometimes it’s okay to charge more than your competitors–if your product is worth it. For example, look at companies like Nike and Starbucks. They are selling their products about 4x higher than their competition, and they are leading in respective markets.
Obviously, the price isn’t the driving force here. These top selling companies have staked out a specific and targeted market dominating position.
When you create your market-dominating position, you will consistently get businesses and individuals to choose your business over your competitors. A dominating market position is any value-added customer perceived benefit or a combination of advantages that makes you different from your competitors.
It’s important to revisit the value that you offer your clients. Customers will be drawn to your competitor who frequently innovates their business so that they offer exceptional value. Everyone can add value to their business. The key to adding value is determining what your customers and target market perceive as valuable.
There are five steps in adding value to your business.
1. Determine your strategic position in the market
Determining this involves combining the skills your business has with the unmet needs of your targeted prospects and then designing your product or service to fulfill those needs
2. Determine your primary market dominating position
This position will provide a dominating advantage that separates you from your competitors.
3. Determine you’re supporting business model
What changes, if any do you need to consider making to your business to ensure you deliver consistently on your position and your promise?
4. Determine your secondary market dominating position
What additional competitive advantages does your business offer that your customers will perceive as being different from your competition?
5. Create your market dominating position statement or elevator pitch
In this pitch, you to state unequivocally what differentiates you from your competitors to your target market.
Written by Robert Ritch from his office in Franklin TN