Replicating competitors’ moves is not a strategy. Most of us try to imitate what one or more of the industry players have already initiated. This way you can achieve competitive parity at best, and a market where competition gets bloodier by the day. Price war is what we get to.
But, replication is the easiest means of implementation.
So replicate, but not what your competitors do, but draw parallel from what similar firms in other industry sectors are doing. You may have to customize what has proved successful for others - who are in the same bracket as you are in, but only in a different industry - to suit your markets.
Comparison of various financial and non-financial parameters will help in identifying a similar firm outside our industry. Apart from a simple comparison of quantified parameters, other aspects of business such as geographical spread, nature of competition, nature of products, risk factors and other value chain considerations can also be compared to zero down on similar firm.
A close comparison and study of strategic initiatives in such a firm can provide much required insights and options for charting a new strategic direction for the company.
No comments:
Post a Comment