Competitive advantage is everything. It’s how you win new business. It’s how you thrive and stay alive in the marketplace. And a competitive strategy is one that helps you bring visibility to those advantages that you’ve developed.
So, in this video blog, I’m going to talk about three competitive strategies in particular. And the first is a cost advantage strategy. Now, this is pretty simple. It’s where you enter the market as the lowest-cost provider of the service that you provide, and here is the double-edged sword to this. This strategy works when you’re in a commoditized environment and lowest cost is valued by your audience.
But that’s also why it’s a very short-lived strategy. Technology allows a lot of newcomers to this space, and they can easily out seat you as the lowest-cost provider. The second is a differentiation strategy. Now, trying to find out how you are truly and meaningfully differentiated in the marketplace is super challenging for professional services firms as a whole, but it is a top way that high-growth firms enter the marketplace.
And we found in our own research that high-growth firms are three times more likely to adopt this as a strategy. And a third strategy that I want to talk to you about is around specialization. Focusing on a niche specialization is a common practice of high-growth firms. And they’re tending to specialize around things like solving a specialized problem or working with a specific role within their target audience.
So, these three strategies are the top strategies we find that help professional services firms take advantage of their own competitive advantage. And if you’d like to find out more, I encourage you to check out a course we developed on this called The Visible Firm. And you can find it in Hinge University.
Hope to see you there.