100 GREAT BUSINESS IDEAS • 47-^ Constantly looking at all competitors: this keeps the business
lean and focused on what matters. In France, there has been
an established lower-cost competitor since 1981—the TGV
high-speed train. This has meant that many of the disciplines
needed for competing with low-cost operators have been
developed over many years.
-^ Using all available resources: competing has meant employing all
of the assets and advantages that a big industrial carrier has in
order to counter low-cost operators—including brand, market
position, and operational strengths. Often a competitor’s strategy
is to build market share with temporary low prices and then to
raise them. An active and patient approach can help to reduce or
remove the threat of competitors.
In practice
- Actively communicate your brand values—what it is that makes
your organization and product special and preferable. - Benchmark your business against other organizations.
- Meet with customers and understand their perceptions and
needs. - Understand, strengthen, and preserve the causes of success in
the business. - Find out why customers prefer you to your competitors.
- Review competitors’ strengths and weaknesses regularly.
Develop an action plan that, over time, will minimize these
strengths and exploit weaknesses. - Develop and refi ne products and the tactics used to sell, taking
into account your understanding of the competition.