Is your business doing enough to achieve a Competitive Advantage? Read Jayadev’s column to find out if you are truly on the right path to success.
Only if you put in an effort to be different, will you bring home the trophy or else you will be running in circles. Repetitious behaviour is what we usually see as how the bulk of the businesses in India performs – they can be any industry, providers of garments, shoes, insurance, food, mobile phones or mobile service. They are offering just about the same range of products and services offered by others in the category and the offerings are similarly priced too – this theme holds true for small businesses and the really large ones too. Although many of them claim to be different, in their brochures and advertisements, there is no real ‘effort made’ to break free from the clutter. The formula movies from Bollywood fit into this category. It is the fear of failure that makes people join the rat-race.
Should we Complain?
For most people, it’s more like “let’s not rock the boat. It worked for them, so it will work for us too!” And then they complain about the lack of traction, poor returns and uncertainty in the market. How can a business expect loyalty or interest from customers when they do nothing to stand out in a crowded marketplace and make any effort to show the customer that they care? What is your business doing to achieve a Competitive Advantage?
The Recipe for Success!
– Today Rahumaniya Restaurant (Kethel’s Chicken), in Trivandrum, is just another restaurant serving Fried Chicken, but a few decades ago the founder had won the market by developing a unique pricing strategy. The more you ate the less you paid on an average – he reduced the cost per unit of fried chicken or fish based on the number of pieces the customer consumed. The connoisseur-owner used to get annoyed if the customer ate less – he enjoyed watching a good gourmand in action. This entrepreneur had created a unique model that was remembered and appreciated, good food that was priced differently. Innovation can be attempted not just on pricing, but also on the product, service, people and delivery models.
– The Mirchi and Mime Restaurant at Powai, Mumbai created differentiation by being good Corporate Citizens – all the wait staff in the restaurant are Hearing & Speech Impaired. Customers bought into this concept of Social Responsibility displayed by the owners.
–In Kerala, the Kochi Metro made a powerful statement by providing employment to transgenders. While it can be classified as a CSR activity, the organisation was sending a message to all other Corporates in the state to stand up and be counted as an equal- opportunity employer and they won the hearts of the populace too.
It is important for businesses in the steady state and for start-ups to show their customers that they solve problems in a special way – creating value for the customer in a unique and meaningful way.
For a better understanding, study the success stories of Apple, Dell, The Body Shop, Virgin Airlines and Nike on the international scene, companies like Zoho, Chumbak, Deccan Airlines and Fabindia in our own country. And closer home, we have the Casino Group (now called CGH Group), V-Guard and Technopark, Trivandrum.
A few things you can try in order to become “the-only-choice” for your customers
– Know who is your customer; choose them well
– Understand what problem of theirs can be solved by you in a unique way
– Select products and services that fit best with your (team’s) skills
– Innovate – if not on the product/service front can you work on price or delivery?
Don’t just be Different, but Stand Out
Don’t get stuck with one idea, ring in changes keeping your core values unchanged – know the pulse of the market and ring in the changes when needed. And be brave enough to give your strategy time to succeed. Spread the word about how you are different. Don’t give up too soon and re-join the rat race – that will be counter-productive. In the end, it is about value creation. The market loves companies that are innovative, different and daring – it pays to be different.
About the Writer
Sports and Birding are his passions. He can be reached at jayadevaksh@gmail.com
Credit – Photo by rawpixel.com on Unsplash