Image Source: Pexels
Why are some companies so successful whilst others find it difficult to even compete? Brand recognition and loyalty is just part of it but what other key elements underline highly successful companies? How can your business adopt them so that you too can become a highly successful organization?
Here are three success secrets employed by profitable companies.
- Competitive Advantage – Competitive advantage can be defined as the combination of differentiation and cost advantage. Differentiation advantage is when a company can offer a better quality of product or service at the same price as its competitors. Cost advantage is when a company offers a competitive service or product but at a much reduced price compared to its competition. Both of these offers the company a USP and a competitive advantage over the market.
- Positional Advantage – unlike a competitive advantage, a positional advantage is when a company’s success is driven by their high position within an industry and not necessarily by price point or quality (although this positional advantage can soon be lost if quality is substandard). This high position is normally achieved either by barriers to entry for competition such as high fixed start-up costs or good brand recognition that positions the company as an industry leader. Such an advantage requires constant monitoring and managing as consumers can and do switch brand loyalty and often a smaller company can offer better deals to customers as they have fewer overheads so this position should never be taken for granted.
- Excellent Management – company management is a key part of what makes a company successful as it is often the decision made and action taken by management that keeps competitive and positional advantages working to drive new business. Experience is key; and experienced team at the helm of a business can not only help the company respond to changing markets but also help nurture the future generation of business leaders. Creativity is also an important factor and often even inexperienced management teams have led companies to the top thanks to a good amount of creativity and confidence (and a little bit of luck!)
- Efficient organizational structure – a good management team is important for strong leadership. This leadership however needs a tight and efficient company structure underneath in order to deliver a quality service or product. A well thought out and executed organizational strategy, design and structure are three vital ingredients of a successful business and a happy workforce. To find out more visit Pingboard
- Setting standards – another marker of a successful company is its ability to lead the market by setting the standards for quality, efficiency and delivery in whatever industry it operates. Owning the label ‘industry standard’ is an accolade that helps a company define its positional and competitive advantages. It can only be achieved if the management team are willing to look ahead at how quality, innovation and customer service will need to change to keep up with and compete in a changing market. Being a market leader is very difficult to maintain unless you are willing to push boundaries as a company and continue to maintain all of the other elements that gained you the market position in the first place.