What is your strategy?

In a world where businesses are always trying to outdo one another, everyone is trying to find that “Holy Grail” (Business Strategy) that can lift their business into greatness. What can this strategy be? And, what do they really mean by it? A business strategy can be defined as the process that enables a firm to rise above their competition and become the dominant player. To be more specific, it is a competitive advantage in the way they run their business.

Here are two ways a firm can attempt to establish a competitive advantage in their industry:

Product/Service Differentiation - Creating a unique product that allows a firm to be the leader of that market. The uniqueness of that firm’s product allows them to be the only player in that market. Since no one can compete with them, the business has a good hold on the price and can be quite profitable.

Niche dominance – A firm with this approach will want to have a secure position in a certain market. This position allows the firm to basically control the market. What is great about this position is that it gives the company a lot of room to work and try new things without affecting their business.

Let’s take a look at Several Companies that seems to be nailing the business strategy right:

Product Differentiation

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In the comic industry, there is no one else that can dominate the market like these two companies can. How can anyone create a superhero that can compare to the list of characters they both have. The characters are not only well known, but they are unique and have been through quite a history. Can anyone really imitate Superman? Characters such as Batman, Spider-Man and many more, gives Marvel and DC that competitive advantage they need to control the market. This is something that isn’t only quite noticeable, but you can see that they acknowledge this type of strategy too. These characters were developed a long time ago, but their story and character are recycled for every generation to enjoy. This allows them to survive and thrive in this industry over so many years. A great example of this was when I was young they aired the Batman cartoon and as I grew up, they moved onto the Superman cartoon. Afterward, they went into Teen Titans and the Justice League. Now that I’m about to graduate college, they are showing a new version of the Batman cartoon. Remaking the cartoon isn’t the only thing they have going for them. A brand new cartoon basically means brand new comics and merchandise. These two companies have created characters of uniqueness that can’t be copied nor compete against, and by all means, they sure know how to use them.

Niche dominance

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When talking about dominance, I’m pretty sure these two companies will be somewhere floating around in your mind. A commercial area isn’t complete without the appearance of these two stores. Every other block can’t be complete without a Starbucks. I can’t even recall the last time I went into a mall without a McDonald’s. As a matter of fact, this isn’t just dominance, it is total domination! These two companies not only made their way into the market, but also the hearts of Americans. What they’ve done to dominate this market was redefine fast food and the way one enjoys a cup of coffee. In some aspects, they are pretty much a part of the culture of this society. Having such a nice position in their respective markets is not without its perks. With this dominance, these two companies can experiment and introduce new products without worrying about many negative side effects as other companies do. Their new products also have the advantage of a large market paying attention to them. In many ways, it helps solidify their new products much quicker. I remember when the “McGriddles” were first introduced. The promotion for it was everywhere and eventually, you just had to go try the thing. I had to admit it tasted pretty good and that’s probably the reason why it is still on their breakfast menu. Even further back in time, I recalled McDonald’s Ice Cream float on their soda. This was something that gained some traction but eventually I saw that it was pulled off their menu. A company such as McDonald’s goes to show that dominance means everything because a small mishap for their company would barely be a flinch, while smaller companies might not be able to afford product failures such as these.

As a result, developing a business strategy can result in many great things. To recognize the advantage you have over your competition and using it dominate the market is even better. That was something I saw in these several companies. They developed themselves into their market and exploited the advantage that was created by their strategy.