STRATEGY
Why Being "Better" Isn't Enough: The Art of Market Domination
If I asked you why a customer should buy from you instead of your competitor, and your answer is "we have better service" or "we are honest," you are in trouble. Everyone says that.
If you cannot differentiate yourself, you are a commodity. And commodities are bought based on one thing only: Lowest Price.
The "Domino's" Lesson
How did Domino's Pizza become a billion-euro giant? Did they make the best pizza? No. Did they have the best menu? No.
They dominated because they created a Market Dominating Position (MDP): "Fresh, hot pizza delivered in 30 minutes or less or it's free". They solved a specific problem (hungry students) with a specific promise (speed).
The "Nike" Effect
Years ago, Nike sold the Air Jordan 3 for €150. Target sold an excellent imitation for €40. Nike outsold them 10 to 1. Why? Because Nike wasn't selling shoes. They were selling status, performance, and "being the best athlete." Target was just selling footwear.
How to Build Your Fortress
You need an MDP that makes you the only logical choice.
The Dry Cleaner
If you offer pick-up and delivery, you are the only choice for busy professionals.
The Builder
If you bundle a home security system into the price, you make the competitor's house look like a bad deal.
You must stop competing on price. You must compete on Value. If you don't differentiate, you die.
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