How to make your Business Survive in a Hostile environment filled with competitors.

Placeholder ImageTo remain relevant to the business venture, one must always have the competitive advantage and have the growing potential of the business. In most of the instances many businesses fail to succeed because of some many and new entrant in the world of business. It is therefore appropriate to consider the following points that can make one dominate the hostile environment massed with competitors.

1. Target the area where you have to most to offer and gain.

It all starts with broadening your scope of thinking, assessing your own strengths, and focusing on areas where you bring the greatest advantage. For example, Apple already had the digital and file management expertise, and they recognized an unmet need with music sharing.

Equally important is the effort to put together, isolate, and motivate the best team for the journey ahead. Do you have the mix of skills, with the level of functional and hierarchical authority required?

You want to select people who are good listeners, are known to be thoughtful, and are willing to raise questions when others don’t.

2. Build an objective view of the strategic landscape.

When the team sees the strategic reality and agree on the need for change and growth, only then can you create real alignment and a collective will to make the shift.

If this is done properly, you won’t have to tell people to move to the new ocean strategy – they will viscerally feel it and do it.

3. Uncover hidden pain points that limit your industry.

This will help everyone identify the unexplored spaces where value is trapped and waiting to be unlocked. Pain points will be seen as blatant opportunities, rather than constraints. Remember that the total customer experience is now much broader than just product features and price.

Identifying all of your non-customers in the current space allows an assessment of the total demand landscape that lies outside the current industry understanding.

Airbnb realized there was an opportunity to extend the hospitality industry beyond the capital-intensive world of hotels and resorts, and hotels were a pain point for young travelers.

4. Reconstruct market boundaries to allow new solutions.

This is where you put random brainstorming aside and apply systematic logic to re-create markets and industry boundaries. The result is firsthand insight into practical ways to reframe existing industry problems and create break-through solutions that will excite a new class of customers.

5. Finalize your move with market tests and business models.

The goal of this step is to take the politics out of the commitment process, and obtain validation and feedback on the strategic options. What you want is a clear decision, validated by key stakeholders, with a wealth of insight on how to prevent gaps in execution.

Now is the time to tighten and refine your plan to maximize its market potential, and then formally launch it.

This ensures that the move you roll out generates not only a leap in value for buyers, but also quickly accelerates growth in your own business. It’s important to move while the team’s energy is high, and they are fully committed to the shift.

These steps are essentially the same, whether your business is mature, or a startup. I see more and more blue ocean efforts these days, but unfortunately not many have the discipline and rigor outlined here.

Perhaps it’s time to take a hard look at your own business growth strategy. It’s a lot more fun to systematically explore new territory, than to endlessly chum the existing sharks.

Once you have a Business Idea what’s Next?

Many people are always in the speed of starting a business with any idea at their disposal. This is one of the things that makes a business not grow to its full potential and eventually collapse. This blog post is important in noting some of the essential questions that when you answer them can allow you to start a business or drop an idea and focus on another ideas.
It is henceforth important for a real Entrepreneur to identify his/her idea in Business and take time to concentrate in building it.

Related articles: successful business ideas you can launch from your living room

Before you jump in the business consider the following questions.

Many economist have always dwelt in trying to answer the question of business failure. Meaning they concentrate on what makes a business stand and what makes it fail. The following are some of the questions that a new entrant in the business field should be focused on answering.

How big is the threat of new entrants?
If it was easy for you to get into the industry, it’ll be easy for your competitors as well.

How big is the threat of substitute products or services?
Beware of cheaper, faster, or more entrenched substitutes for what you make.

How much bargaining power do your customers have on price?
The bigger they are, the more they can squeeze you on price, or even force you to give away product as a “loss leader” to get in the door.

How much bargaining power do your suppliers have on price?
The fewer the suppliers of what you need, the more you’ll pay.

How many powerful competitors operate in your space?
Are they civil or warlike? The more vicious the competitors, the more money it will cost to compete.

This questions once answered successfully you will know if it is profitable to enter into a business or you will be faced with hostile environment.

Share widely!

Great Thinkers

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