1. Chapter 3: Action Step 3 Choose a Winning Strategy: How will you distinguish your product or service from others?

2. The Two Fundamental Strategies Low-Cost Leadership –Sell at a lower price than your competition –Be certain you can still make a profit Differentiation –Identify the needs of your customers –Meet them better than your competition

3. Examples of Strong Competitive Advantages Patent Government granted license or monopoly An effective or de facto monopoly Strong name brand Speed…in service or delivery

4. Other Competitive Advantages Lower price Great service Positive image or brand Good reputation High status image

5. SWOT Analysis: Tool for Seeing the Competitive Advantages of an Existing Business InternalExternal PositivesStrengthsOpportunities NegativesWeaknessesThreats

6. Anticipate an Exit Strategy Give to family members Sell to competitor Sell to employee(s) Sell to someone else Close Other? Go public?

7. Best Strategies for Emerging Industries Bold, win-early strategy Product, or service superiority Superserve niche markets Pick the winning technology early Build early brand loyalty

8. Best Strategies for Maturing Industries Reduce cost Focus on major customers Expand to new markets Purchase rivals

9. Best Strategies for Stagnant or Declining Industries Focus on niches, especially growing niches Differentiate your product or service Innovate Reduce cost as much as possible

10. Best Strategies for Fragmented Industries Focus on a local market Specialize Create formula facilities Keep costs down

11. Best Strategies for Industries with Dominant Leaders Focus on the long term…it may take a long time to beat the big guys Take risks with new products or services Know the market you are serving better than anyone else