If you don’t have a strategy for competing in your market, you could end up fighting a losing battle.
There are basically two ways you can go: You can compete by selling at low price. To be successful. you must live with small margins, sell to a broad market, and depend on big sales volume to earn decent profit. You must also hold your own costs to a bare minimum.
Or you can differentiate your company from your competitors, convince buyers that you provide goods or services they can’t easily get elsewhere, and sell to a smaller, specialized segment of the market – that is, be a big fish in a smaller pond. Your volume is less, but your margins are better, so your profit is healthy..
Many marketers don’t think about strategy, and never make up their minds which way to go. They get stuck in the middle, confusing the buyers, and never making the sales they’re capable of. If you get stuck in the middle it’s almost certain your profitability will suffer.
It’s the wise marketer who analyzes the market and the competition regularly, and decides which way leads to the best opportunities. And who recognizes that markets and competition change, and every smart company should stand ready to change focus.