Due to the intensification and dynamics of competition, it is essential that companies develop a clear strategy that is adapted to the industry environment. This is the only way to achieve corporate goals and generate long-term competitive advantages. Early strategic planning and regular analysis of the industry, its trends and the competitive structure are curcial for the success of a company. Which strategy promises optimal success depends on the desired market coverage and the company’s desired goals. The question is whether performance or cost advantages can be played off against the competition.
Our approach
Situation
Deciding between the mass market strategies of cost leadership or differentiation for overall market coverage, or between the segmentation strategies of niche or low-price strategy for partial market coverage, means setting a clear direction for companies to achieve their corporate goals. Only this decision sets the course for a successful strategy. Companies that try to take advantage of several strategies, e.g., being equally cost leader, differentiated and able to push through a price increase, have often failed in the past.
Target
The goal is to define a strategy that is individually tailored to the client organization to create a unique competitive position. Furthermore, a subsequent successful implementation of the chosen strategy is aimed at.
Solution
The experienced team of consultants at ensign advisory has comprehensive industry know-how and therefore offers great support in the selection of a suitable competitive strategy and its subsequent implementation.
To support the clients, our consultants conduct a detailed analysis of the client organization, the industry structure, and all relevant players, as well as the most important competitive forces. Thereby current trends and changes are considered and incorporated into the strategic planning. Furthermore, the target market gets identified to select the most promising strategy for the organization.
If the target market consists of the total market, our consultants analyze whether competitive advantages can be reached from performance advantages, e.g. by increased quality or differentiation of the products and therefore the differentiation strategy could be the fitting strategy. Alternatively, cost advantages could be gained through an aggressive pricing strategy and therefore the cost leadership strategy could be the most profitable one. If, on the other hand, sub-market coverage is focused on, our consultants jointly select a suitable segmentation strategy. Depending on the client’s objective, the niche or low-price strategy could be chosen.
If cost advantages are to be created in a sub-market, we help to optimize the processes to be able to offer the corresponding product at a lower price or to launch it more effectively on the market in order to displace the competition. If the focus is to be placed on a niche, our consultants also help to expand the organization’s unique selling proposition and thus create performance advantages.
Result
Our consultants provide support in identifying the appropriate strategy so that our clients can position themselves optimally in the market and among the competition. As part of the implementation of the differentiation strategy, we help clients to set themselves apart from the existing range by means of special product features. In addition, we support them in establishing and sustainably securing an appropriate image by establishing a unique brand. To implement the cost leadership strategy, we assist to make production facilities and processes more efficient and thus to achieve the targeted cost reduction. In this way, products can be offered at lower prices while still generating a profit. In the context of the niche strategy, our consultants help to better understand the needs of the end consumer and to align the product range accordingly, thus giving our clients a competitive advantage.
Our core competencies
Generation of Sustainable Competitive Analyses
Our team of consultants helps clients to answer the central questions of competitive analysis and to strategically align the organization accordingly. Together with our clients, we analyze how many competitors are already operating in the relevant markets and what goals they are pursuing. Furthermore, we identify the organizational strengths with which our clients can create competitive advantages. Considering the organizational weaknesses, we will find the competitive strategy that is most effective for our clients.
Selection of the Appropriate Competitive Strategy
Based on detailed analyses, we select the most promising strategy for our clients to position their organization in the market and to make it competitive in the long term. Additionally, support to find answers to the questions of how the client organization should face the competition, what goals the organization is pursuing, and what measures are necessary to achieve these goals.
Implementation of the Competitive Strategy
Once the right competitive strategy has been selected, our consultants support our clients to implement the identified measures to achieve the set targets. Our consultants thereby support in making the organizational processes, production facilities and internal structures more efficient, in filling vacant positions, in making make-or-buy decisions and/or in strengthening the (brand) image. ensign advisory is a competent partner throughout the entire implementation process.
Systematic Market Research and Market Analysis
Due to our many years of experience in line and consulting functions, we have a deep understanding of a wide variety of industries as well as the relevant markets and current developments. Combined with our systematic approach and industry insights, we are ideally placed to use market research and analysis to compile the information that is crucial to the development of a successful corporate strategy.
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