Competitive strategies include strengthening marketing power, improving product quality, reducing production costs, improving service standards, and establishing corporate image. However, it is almost impossible for us to be the best in the market in every aspect. When it comes to expanding a certain market or winning a certain customer, we need to focus on something. To this end, we must use some strategies to improve our resource utilization efficiency and competitive effectiveness.
The first is the market focus strategy. We can divide the market into advantageous markets, key markets to be developed, and wait-and-see markets. Advantageous markets refer to regional markets where companies have already gained certain control or have unique competitive advantages; key markets to be developed refer to markets where companies need to focus on breakthroughs in the next step, such as major global markets, emerging markets, etc.; wait-and-see markets refer to markets where competition is already very fierce, where companies do not currently have advantages or are not urgent, or immature markets. It is recommended that companies strengthen their advantageous markets, allocate limited resources and talents to a few markets (or customers) that have currently gained certain advantages, and make these markets (customers) deep, thorough, and professional. What does it mean to be deep, thorough, and professional? Here we provide several reference standards:
Know more than 80% of the importers, the top 5 importers, and the top 5 end users or distributors in the market;
The company occupies more than 10% of the market share and more than 30% of the quantity (or amount) of China’s exports to the market;
Visit customers in the region at least once every 2 years;
Be relatively clear about the top 5 foreign suppliers in the market and the main channels of these suppliers;
Customers are very satisfied with our products and services.
The second is the differentiation strategy. For example, improve packaging, refine product models, provide more supporting services, and launch special products or services that other suppliers do not have. In short, in terms of product quality, product categories, customer service, timely and flexible delivery, customer communication, value-added market information, channel policies, customer training, corporate image, etc., in areas where competitors have not done well or have not done well, provide customers with some new value, which will definitely attract some customers. And this is our most important strategy for key markets to be developed.
The third is the comprehensive cost strategy. In fact, as far as export-oriented products are concerned, cost-leading companies are often more likely to gain competitive advantages. This is mainly because international buyers are generally professional buyers, and it is often difficult for exporters’ products to have brand advantages in foreign markets. In addition, professional buyers are often very clear about the cost structure of suppliers. If there are more than two suppliers with equivalent quality, they tend to choose suppliers with lower costs and then put their own brands on them, rather than choosing suppliers with higher reputations. After all, there are too few Chinese brands with a certain degree of popularity in the global market. In the field of industrial products, the role of brands is relatively smaller, and price competitiveness is more important.
The fourth is the dynamic tracking strategy. When developing new products and determining priority markets, it is very important to track the dynamics of competitors. Although the development of new products and new markets by enterprises is based on market research, due to the limitations of market research methods, the conclusions drawn may have certain errors, and the market itself is dynamically changing, so research reports that take too long often lack timeliness. These realities that cannot be ignored require us to pay close attention to the market response of our own products, as well as the actions of competitors and excellent companies in other related industries, and be inspired by them to guide our own market behavior.