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.
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.
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.
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.
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.
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