tag:blogger.com,1999:blog-5992589118367356822012-02-16T04:54:23.202-07:00Dave Millerhttp://www.blogger.com/profile/01487960400967294420noreply@blogger.comBlogger21100tag:blogger.com,1999:blog-599258911836735682.post-52115080582097256082011-10-18T11:56:00.000-07:002011-10-18T11:56:22.806-07:00Businesses succeed because their customers perceive that they receive value from dealing with a specific provider.&nbsp; This perception becomes the basis for the compny's competitive advantage.&nbsp; It&nbsp;becomes their vlaue porpostion.&nbsp; <br /><br />In developing their business plan an organization needs to focus on their competitive advantage as viewed by the customers.&nbsp; What is the value proposition that you will be delivering to your customers.&nbsp; You must clearly articulate your competitive advantage and use that to understand your potential customers and how they value the goods or services that you will deliver.<br /><br />Once you clearly understand your value proposition you can use that to determine the price that your customer will be willing to pay to receive the value you are delivering.&nbsp; During my career I have successfully utilized some sage advice I got from a mentor “price is set in the market place, it bears no relationship to cost, the only thing costs tell you is if you want to be in that business”.&nbsp; If the price you customers are willing to pay does not provide solid margin then you cannot have a profitable business.<br /><br />Sustainability relates to your ability to maintain your competitive advantage over time.&nbsp; If you are wildly successful will your competitors be able to easily provide the same perceived advantage.&nbsp; That does not mean that your competitive advantage cannot change and be enhanced over time.&nbsp; It clearly must adapt to changing market conditions and customer needs.&nbsp; In dealing with start up companies I frequently see them say their competitive advantage is price.&nbsp; My question will always be "are you be the low cost supplier"?&nbsp; If not and you become successful what will the low cost supplier do----lower their price to meet your competitive threat and take the market back.&nbsp; Not a sustainable advantage!!<br /><br />I hope that you now see how important it is to clearly define your sustainable competitive advantage in order to successfully grow your business.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/599258911836735682-5211508058209725608?l=strategictransitions.blogspot.com' alt='' /></div>Dave Millerhttp://www.blogger.com/profile/01487960400967294420noreply@blogger.comtag:blogger.com,1999:blog-599258911836735682.post-81058231434598224822011-09-17T07:50:00.001-07:002011-10-18T11:51:24.683-07:00<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Getting an investment from an Angel investor starts with an understanding of what type of investment will get their attention. </span></div><a href="http://strategictransitions.blogspot.com/2011/09/angel-investor-investment-criteria.html#more">Read more »</a><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/599258911836735682-8105823143459822482?l=strategictransitions.blogspot.com' alt='' /></div>Dave Millerhttp://www.blogger.com/profile/01487960400967294420noreply@blogger.com