KEY POINT: There is a better way to compete today in a highly commoditized marketplace…going BEYOND DIFFERENTIATION™.
KEY QUESTION: Why is traditional DIFFERENTIATION (primarily your product or service) NOT DIFFERENTIATING you in the marketplace?
What do we all do when looking to buy something, either as a consumer or a business? We search, and search, and search some more?
WHY?
Because we want to find the product or service with the BEST PRICE, most READILY AVAILABLE, has the BEST TERMS, or has the BEST LOCATION…or some combination of these factors. Right? We all do it. And since the Internet is a part of our everyday life, it is relatively easy. Sure, it takes us some time, but we believe the rewards are worth it. It’s how the majority of people do business today. Not because they necessarily want to, but it has become “the way we do business.”
HERE’S THE PROBLEM FOR BUSINESSES…
When a customer evaluates you on the FOUR FACTORS listed above (Price, Terms, Availability, and Location), you are, by definition, a COMMODITY to the buyer. I know, the ugly “C” word. NO BUSINESS ON THE PLANET wants to be viewed as a commodity. When you do, it means you are competing heavily with other competitors and giving away margin and profitability. NO BUSINESS wants to give up either of these…but they do when they have to play the commodity game.
Today, unfortunately, the “barrier to entry” is virtually gone. Businesses have competitors showing up out of nowhere offering similar (or better) products and services that are CHEAPER, more READILY AVAILABLE, have BETTER TERMS, and offer a BETTER LOCATION. It happens all the time in almost every industry. Are you seeing this in your industry? My bet is your answer is a resounding YES! And you hate it…we all do. No one likes to have new (and existing) competitors beating them in these FOUR COMMODITY FACTORS. But it happens…all the time.
COMPETING IN THESE FOUR COMMODITY FACTORS ERODES AND KILLS BUSINESSES
When a business is forced to compete in the “FOUR COMMODITY FACTORS,” it is expensive. Bottom line, it lowers PROFITABILITY and ENTERPRISE VALUE while limiting their ability to SCALE. So why do we do it? Why don’t we find a better way to compete and win? Why don’t we find a way to get our organization out of the “commodity landscape” and rise above them? Most don’t because they don’t know how…until now. It doesn’t have to be this way!
The PRIMARY REASON DIFFERENTIATION ISN’T DIFFERENTIATING TODAY is because organizations have staked their future on their PRODUCTS and SERVICES…COMMODITIES. You might not think your product or services are commodities, but if you have to compete on PRICE, TERMS, AVAILABILITY, and LOCATION, they are commodities. If you can lose a customer at any moment because of one of these four factors, it is, by definition, a commodity. If this is how you are DIFFERENTIATING your organization today, it isn’t DIFFERENTIATING any longer because there is no more barrier to entry. It’s super easy for a competitor to show up with better products and services and force you to adjust one or more of the four factors.
NOW THERE IS A BETTER WAY TO ECLIPSE YOUR COMPETITORS AND LEAD YOUR MARKETPLACE…AND STOP COMPETING AS ANOTHER COMMODITY BUSINESS IN THE MARKETPLACE…GO BEYOND DIFFERENTIATION™.
Going BEYOND DIFFERENTIATION™ is an entirely different approach, mindset, and culture that allows companies to avoid playing in the commodity game. Why is it so different? Because it’s FOUNDATIONAL to the business…not a strategy or goal. It creates a foundation in your business that is extremely difficult for a competitor to copy or challenge. It changes the way you interact and treat your audience of customers, partners, vendors, prospects, and anyone else interested in what you do. And, perhaps the best part, it can be there for the life of your business…not some short-term flashy fix or system.
These are just a few reasons why some of the most successful businesses have gone Beyond Differentiation™ and eclipsing their competitors. They realized to be the leader, they needed to escape the grips of commoditization and elevate themselves above the pack. And it has paid off with higher profits, greater enterprise value, increased customer loyalty, and the ultimate reward of advocacy…where their audience goes out of their way to tell others they are THE ONLY ONE to buy from or work with. Isn’t that the place every business wants to be in their market? I believe it is…and so do many others.
In my next post/article, WHY IT’S TIME TO GO BEYOND DIFFERENTIATION™, I will share with you more details on what makes this FOUNDATION so incredibly powerful for a business. I will also share the key components of making this happen inside your business. My goal is to help give you the recipe and formula so more businesses can see how incredibly game-changing this can be and start their own Journey to GOING BEYOND DIFFERENTIATION in your own business. For now, I hope I have stirred some interest in you that there is a better way to build your business if you truly want to be the leader in your industry. If you want to read more before then, please visit WOM10.com. Until next time…
