1. Going Up Against the Big Guys Why Bigger isn’t Always Better A presentation to the CCIM-IREM Success Series 2009 October 17., 2009 Honolulu, Hawai’i Dr. Lowell “Duke” Kuehn 9812 Island View Lane, University Place, WA 98466 360.791.8450 duke@pnwconsult.com www.pnwconsult.comduke@pnwconsult.com

2. This material is copyrighted (2009) to Pacific Northwest Consulting Services, Inc, and Dr. Lowell “Duke” Kuehn. You are free to copy and distribute it as long as you correctly attribute its source don’t make any money off of it. I want folks to learn about and use these powerful tools, so give this presentation to anyone you think might find it helpful, For copies of similar presentations check out my website or blog: www.pnwconsult.comwww.pnwconsult.com www.dukeonline.blogspot.comwww.dukeonline.blogspot.com Duke October 17, 2009

3. Many metaphors: David and Goliath Jack and the Giant 1969 Super Bowl: Namath Jets beat Colts 1980 Olympics: US Hockey beats Soviets. Best may be one whose 65 th anniversary we celebrate next week: The Battle for Leyte Gulf, Samar Island October 25, 1944

4. Basic strategies for beating big competitors. 1. know and solidify your market position 2. know and slice off edge of their market position 3. pick your fights 4. exploit your advantages, their disadvantages 5. supplement your size 6. adopt better tools, faster 7. provide superior, customized service

5. This presentation builds upon two powerful concepts you need to understand absolutely and put into execution perfectly. Market PositionCompetitive Advantage Think of these as David’s slingshot and the rock.

6. Market Position Imagine the market you operate in as a three dimensional space and the business you conduct and the clients your serve define that space. Each side of the cube describes some feature of your business. For example: class B office buildings located on the south end of town several medical facilities All Types of Space You = Class B office buildings ALL TYPES BUSINESS You = medical You occupy a specific space in the cube… that’s your POSITION or NICHE. ALLLOCATIONSALLLOCATIONS YOU=SouthEndYOU=SouthEnd

7. All Types of Space ALL TYPES BUSINESS B Medical S. End ALLLOCATIONSALLLOCATIONS Take a second, think about your niche. Defined? Known? Unassailable?

8. Better to think of your position as a FORTRESS.

9. In your market your competitors occupy their own positions and you need to face all of them, big or small. They will and do compete for position and they WILL try to squeeze you out.

10. Competitive Advantage (or disadvantage). B Medical S. End The market position you occupy possesses certain advantages by virtue of: DEFENSIVE SAFETY POTENTIAL for GROWTH To compete, you need to know this for yourself as well as any competitors near your position.

11. When you master and apply these the concepts of market position and competitive advantage you are ready to take on ANYBODY, not just the big boys. You can conduct a competitive analysis and figure out where and when to compete (or not). FirmDefensive Strength Growth Potential Weakness US Inc.South End Medical Big Guy 1Whole CityWherever they want Electronics Big Guy 2North EndGovernmentMedical Medium GuyWestsideMedicalClass B Small GuySouth EndMedicalManufacturing

12. So Rule # 1: Know and solidify your market position.

13. Rule # 2: Know competitor’s market position and slice off the sides that are vulnerable.

14. Rule # 3: Pick your fights.

15. Rule # 4: Exploit your advantages, their disadvantages.

16. Rule # 5: Supplement your size.

17. Rule # 6: Adopt better tools, faster.

18. Rule # 7: Provide superior, customized service.

19. GOOD LUCK! For a copy of this presentation, send an e-mail to Duke Kuehn, duke@pnwconsult.com

20. Just can’t get enough of this? Notes from Duke's Casebook Volume 5, Issue 1 The Cynical and Resistant EditionMay 2008 Give me a card or send me an e-mail and I’ll add you to my list. duke@pnwconsult.com Check out my website and blog for more material and resources: www.pnwconsult.comwww.pnwconsult.com www.dukeonline.blogspot.comwww.dukeonline.blogspot.com Tomorrow, Tomorrow, Tomorrow… Planning Can’t Wait, Do it NOW! The Facilitator’s Toolbox Tricks to Overcome Cynicism The World’s Very Best Margarita Recipe