What makes a business vibrant? What makes a company a survivor of the various battles undertaken during the everyday course of business? Why are you doing what you are doing?
It is something easy to answer but a hard thing to do…make yourself different.
Companies compete on three basic value propositions: operational excellence, product leadership, and customer knowledge. A value proposition is defined as “a promise of value to be delivered and acknowledged and a belief from the customer that value will be appealed and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.” (Wikipedia, 2014)
For example, if you are competing on the basis of product leadership, you believe that you can deliver the best, leading edge product which the consumer is going to attach value to it. A great example of that is Apple, even though that product leadership standing isn’t as strong today as just 3 years ago.
Not all value propositions are considered to be equal, but yet, are utilized today. Operational excellence is known as offering the least expensive product to market and being the weakest of the value propositions. However, Walmart has been able to make its business around that model.
Look at your value proposition and the value proposition of your direct and indirect competitors. If you are following the same proposition as another company, how are you making your company unique? Have you been able to create a value proposition which is known as a “Blue Ocean”? The best known company which has a Blue Ocean value proposition is Cirque de Soleil. They offer an adult-based circus shows that kids are also able to enjoy.
The uniqueness of your company is a major factor why it is operating today. If it was not unique, why would people be buying from you? Uniqueness allows a company to stand out and become a supplier of choice for businesses and consumers alike.
If you have any questions or feedback, please feel free to leave me a comment.