What Are Your Competitive Advantages?

I highly recommend the book “Creating Competitive Advantage” by Jaynie L. Smith.  We must communicate reasons for our customers to choose us over our competitors.  To be effective, those reasons must be based on the needs and the desires of the market and we must consistently deliver on our commitments.

I’m fascinated with this topic because precious few business leaders can provide a clear answer to their competitive advantages.  Most default to vague, imprecise generalities such as “our level of service” or “good quality”.  My exposure to this book five years ago made a big impact on our company.

Possible areas to consider, per Smith, include:

1)  Carve out a new paradigm for your industry (listen to the market and find unique ways to meet their needs)

2)  Tout your celebrity status (if you have a list of impressive clients that will truly impress the market)

3)  Brag about your employees’ training and experience.  Even if the competition does the same thing, claim it before they do.

4)  Develop proprietary software to enable you to do what you do far more effectively.

5)  Turn disadvantages into competitive advantages.  Ask your employees to name your top competitive disadvantages and appoint teams to solve the problems.

6)  What does your competition do better than you?  If it is really important to the customer, what investment will you have to make to do it better than they can?

7)  Communicate, communicate, communicate your competitive advantages internally and externally continually.

You’ll be one of 500 companies that do so and you’ll grow as a result.

Do the right thing.  Make a difference.

Build a True Team

Create a culture of trust and openness within the organization by communicating regularly with your team.  Discuss company goals, including financial, departmental, strategic and tactical goals.  The leaders’ willingness to share the good and the not as good will contribute to a culture of trust, of teamwork, and of accountability.   

Celebrate successes together and work together through the more difficult times and challenges.  When the organization fully appreciates that everyone contributes to the company’s success, and that those contributions are genuinely noticed and appreciated, the organization begins to protect itself and begins developing into

 Build the kind of team that genuinely enjoys each other’s company and enjoys working together.   The holiday party should be a culmination of small celebrations throughout the year.   

 My favorite…set a financial goal that is a stretch goal, but that is attainable.  Accrue enough money during the year to take everyone and significant others on a trip to Mexico.  The return on investment is immeasurable. 

Do the right thing.  Make a difference.