How to Outsmart Your Competition

Here’s an engaging interview I recommend with Harvard Business School strategist Michael Porter talking about the 5 Competitive Forces That Shape Strategy. If you decide not to watch it, here’s part of what he says:

These are the five competitive forces:

• Rivalry among existing competitors
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new entrants into the market
• Threat of substitute products or services

As a small service business owner, you face many of the same competitive forces as a large global company. But you have an advantage that they don’t have. You can more easily carve out a piece of the pie that you do better or more uniquely than anyone else. When you do that, you don’t really have competition as long as you stay on top of your game.

How can you carve out a piece of the pie so you don’t have to worry about competition? Here are 3 suggestions:

1. Communicate more clearly than anyone else in your field. That means listening as well as talking, asking as well as advising. Be more open and honest than your competitors.
2. Show your clients that you really care by building strong relationships and always giving extra value. The best way to add value in a service business is in the way you connect with your clients.
3. Provide a service that nobody else does. It may be just an extra touch added to your main service, but look for a problem or frustration that nobody else addresses, and provide a solution. You’ll wonder why you didn’t think to do it sooner.

If you want help thinking about how you could do these things faster or easier, sign up for a free 30 minute consultation and we’ll talk about it. Just email me using the Contact form and request a free consultation. I’ll send you details for signing up.

In the meantime, if you want to expand your thinking, watch the video.

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