Taking on your competition is not an easy task, but you need to know how to do business with the big boys. The following tips and suggestions will help you in the future as your business develops and grows it is the strategies that you employ within the business that will make or break the business. Read the following article and tell me what you think.
Things You’ll Need:
1)Good Cognitive skills
2)Action plan for the next 12-24 months
3)Strategies to ensure that the action plans are successful
The strategies that you are about to go through will help you develop your business and increase profits and market share.
Low cost, High
Differentiation
Strategies.
· Dominant leader strategies for defending competitive position through low cost, high differentiation.
Research experience and intuition all indicate that the dominant market leaders, the company that stands out above the rest, has significant advantages in the market place, which it dominates. Basical
This means that market share and profitability are strongly related. This means that businesses with market share above 40% earn an average return on investment 3 times that of those with shares under
1. Marketing share is more important for infrequently purchased products than for frequently purchased ones.
2. Market share is more important to business when buyers are fragmented rather than concentrated.
Factors such as economies of scale, risk aversion by customers and market power are some of the intuitive explanations of the dominance/high profitability relationships.
The dominant market leader will at different times, consider both offensive and defensive strategies. Offensive moves are those strategic changes the market leader initiates. They may be threatening t
Offensive strategies include.
· Product packing and service innovation
· Development of new market segments
· Redefinition of the market to broaden its scope and position products more closely against broad substitutes, and
· Market development through product variety and distribution strategies to increase usage and widen availability
Only the market leaders should consider playing defence. Under certain market conditions the most profitable strategies are those that protect and defend the market share and profit base of the market
Defensive strategies include
· Blocking competitors by brand for brand matching, distribution coverage and price strategies to reduce their market share and profit potential
· Pre-emption of a competitor’s action by being first with a new product/services and distribution system
· Use of government regulations tariffs, import quotas or court action to increase a competitors cost or deny a market base, and
· Rumours about a competitors viability, service back-up or reliability of products/services
In practice, all these strategies are used frequently by leaders to defend their market position. Two main types of strategies for gaining maximum coverage and closing competitors out of opportunities
Market saturation, by offering proliferation of product to distributors and end users limits the opportunities for the competitors. British airways have been very successful with this strategy in the
Low cost,
Low differentiation
The banking industry is a good example of undifferentiated markets in which a number of large competitors exist, none of whom have a dominant share, but all of whom are seeking a leadership position.
1. Vision. How the business will change and improve in the future ahead of its competitors
2. Commitment. In every area of the business to achieve improvements in customer value or cost of operations
3. Innovation. In every area of the business to achieve improvements in customer value or cost of operations.
4. Long-term outlook. Allows commitment to longer term growth and profit goals
5. Continuing. Investment to renew and improve all assets, especially new products, existing brands and customer franchises
6. Persistent attack. Providing the overall focus of a company’s activity on fighting and winning, any defensive efforts is part of a long term plan that will culminate in a fresh attack, and
7. Speed of response. To changes in the customer needs or in the business environment, and quick counter-attack to competitive thrusts.
Lets put all of this together now with one more piece of information, which is of vital importance.
Choosing a value Positioning.
More for more
Companies can always be found that specialise in making the most upscale version of the products and charging a high price to cover their higher cost. Called luxury goods, such products claim to be be
More for the same.
Companies have been able to attack a more for the same brand by introducing a brand claiming comparable quality and performance but priced much lower. The Toyota Company introduced the new Lexus, with
The same for less.
When buying a product at less than the normal price you are making some savings, No matter what it is i.e. flat screen TV’s seem to be available at lower prices at some shops. Today people are able to
More for less.
Yes, the winning strategy for value positioning would be to offer prospects and customers more for less. This is the attraction of highly successful category killer big outlets. Toys R Us, for example
Deciding on the breadth of market coverage.
Monday, May 5, 2008
How to increase your market share and profits!
How to Earn Money in the Stock Market
The stock market is the center of the economy, but it's a wild roller coaster. Someone who invests in the right company at the right time can look at an early retirement, but the wrong investment can cause you to lose everything. Trying to earn money in the stock market is not for the cowardly or weak of heart.
Step1
Choose a company you wish to invest in. The newspaper's business section will list every company on the stock exchange, and what its price per share is.
Step2
Determine how many shares of your company you can or want to buy. Remember that you will have to include a stockbroker's commission to the total price.
Step3
Call a broker and tell him how many shares in what company you wish to buy. The broker will relay the purchase to a floor broker on Wall Street who will buy the share from the company for you.
Step4
Check your stock's price each day through the newspaper business section or online. By seeing how much the shares have gone up or down, you can determine if you want to keep the shares or sell them off
*Buy stocks when the price is low and sell when high. This is the golden rule of the stock market.
*Don't panic and sell if the stock starts dropping. If you stay long-term with a proven company, the good days will often outnumber the bad and you'll make money in the long run.
*Sell if your stock's price is skyrocketing. It will eventually come down, and hard.
*Buying into a new or expanding company can pay off, but there's great risk. The guy who invested in Starbucks early on made a fortune. Someone who invested in the first laser discs didn't do so well.
*Always remember: the stock market is the biggest game of toss-up. Nothing is guaranteed and getting in at any time is always a risk.
Friday, January 25, 2008
HOW TO MANAGE YOUR MONEY
Learning effective money management not only enables you to live comfortably within your means, but also helps you to increase your wealth. Use these money management tips to stay in control of your money!
$Set a Money Management Goal
Money management is a means to an end. However, make your goal practical and be sure the “end” is in clear sight. Although your money management goal may be to have a comfortable retirement, start small with objectives like paying off a credit card within X number of months or saving $X by the end of the year. In money management, like in any regimen, there’s nothing like the satisfaction of success to keep you on track!
$Know what you have
Before you can live within your means, you need to know what your means are. Start money management by taking stock of your money. You’ll probably be surprised at how rich you really are!
As well as the cash in your pocket or purse, include piggy bank cash, bank balances, and available credit from credit cards. (Lines of credit, such as overdraft protections and available credit from credit balances, are additional resources we can use to purchase goods and services. At first look, they appear to be a part of our money. However, credit always belongs to the creditor. When we tap into these financial resources, they decrease our spending power over the long haul with finance charges, fees, and interest that increase our debt.)
Go on a treasure hunt to find lost money. Look in coat and trouser pockets, through Birthday and other greeting cards, jewelry boxes, dresser drawers, under furniture cushions, behind and under furniture, in your freezer, and under your mattress!
Although our money is an asset and all of our assets are types of our money, generally we’re more inclined to think of assets as property.
However although all of our possessions are parts of our wealth that we can turn into cash, usually they are the types of our money that we want to protect from creditors. For instance, you probably don’t want to sell your car or cash in a valuable coin collection to pay a bill. Yet, the ability to convert property to cash is a good concept to remember in identifying and effectively managing your money.
Some assets like vehicles and appliances depreciate (decrease in value) over time. Yet, while they don’t increase spending power, you can turn them into cash.
Long-term assets like real estate holdings, investments, and personal property such as collections, artworks, and antiques appreciate (increase in value) over time and actually enable us to save money and increase our wealth.
$Track your income
$Track your spending
Once you know what money you have now and what income you can expect to get, it’s time to find out where your money goes. Take a month and track your spending down to the penny. Make your first purchase a small notebook and pen you can carry in purse or pocket.
Record everything! In addition to tracking the cash you spend, use your notebook to record every bill payment, check, debit, and credit card expenditure. Include the amount you paid, who you paid (or where you shopped), and the date you made the purchase.
After a couple of weeks, you’ll find yourself reconsidering if you really need that pack of gum or mid-morning café latte. However, this money management exercise is designed to show you how you usually spend your money. It’s important during this month not to deny yourself your usual pleasures, no matter how trivial they are.
Setting a realistic goal, knowing what you have, what you expect to earn, and tracking your spending are the basics of money management that enable you to control your money and make wise budgeting choices in the future.
