My first post on this subject focused on who your competitors might be. Part 2 looked at developing your competitive strategy. As I work with CEOs, supporting them in developing their strategy, it rarely occurs to them to consider their competitors response to their new strategy, what risks they pose and what defensive responses might be. Why do this? Advance thinking will mean you are prepared and can be proactive to ensure you beat the competition rather than the other way around. Whenever you alter your strategy, consider the responses to these question.
1. Will my new strategy mean there are new competitors I need to be aware of? Responses: Assess the level of competitive strength each new player has on your strategy. What are they good at? How do they operate? The actions are similar to those mentioned in Part 2, Question 2.
2. How might my competitors react to my new strategy? Responses. Consider how they might react and what impacts that may have on your success in executing your strategy. Will they spend more on advertising? Develop stronger marketing messages? Copy your strategy? Try to tie customers into contracts to build/maintain their market share?
3. How will I know if and how they are reacting? Response. Of course they may not respond but it is not difficult to put a few “triggers” into the market place that would alert you to any action on their part. What could you easily monitor to alert you? Is it simply asking people in the market – customers, suppliers, industry experts? Watching the press?
4. What will your competitive response be if they do go on the offensive? Responses. Build tactical responses to act fast and support the execution of your new strategy. We often focus on what we need to do to grow. What new products, customers, markets we need to reach and what resources we will need to achieve our new strategy. Do we also consider what we may need to do when our competitors see us as a threat or our strategy as an attractive opportunity?
I also plan to run a teleclass on this subject, giving the £5 registration fee to my Charity Women V. Cancer. If you wish to be notified of the teleclass details please complete the form below.
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A few days ago I saw a fox my kitchen window at the bottom of my garden,we caught each other’s eye and at first he was suspicious but then realised I was ok and now he comes frequently near on the decking, just watching, knowing it is safe. I have written a little poem about the experience
‘once eye contact was made, the union of minds confirmed our love, our respect, the trust was built and I no longer fear, we look at each other and share our space, the space that knows no boundaries’