clients

Why is it that some companies achieve sustained high growth year on year in both their revenues and profits and some companies wilt and die?

The companies that wilt and die do so because they are too wrapped up in the conventional approach of attempting to stay ahead of the competition where as market leaders pay very little attention to what their rivals are doing. They would rather channel their energies into making themselves the market leaders that others must aspire to through the use of a strategic logic called value innovation.

Value Innovation brings together key ideas from a variety of sources, and has four key stages, which when mixed together come up with the recipe for successful business and client retention.

1) Avoid going head to head with your competitors.

Market research suggests that innovation rarely occurs when a company is at loggerheads with a competitor for the lions share of the same market place. Trying to be better at what your competitor does well often leads to a negative impact on your costs and margins due to price pressure. Instead search for a market that is not saturated with competition and be the best there is at what you do.

2) Assess your companys Value Curves

Value Curves are a reflection of your services in comparison to your competitors as seen through the eyes of your clients. The curves show the aspects of your services that your client actually cares about, these aspects are known as value elements and are shown on the horizontal axis of your graph. You will find the results of the the relative level of offering from your competitors on the vertical axis.

3) The formal process for assisting analysts whilst exploring likely approaches to new value curves known as the analysis of the Six Paths

- Path 1 – Looking at the industry

- Path 2 – Looking at strategic groups

- Path 3 – Look at the chain of purchase

- Path 4 – Review complimentary offerings

- Path 5 – Does it have an emotional or functional appeal

- Path 6 – Research time trends

4) Day In The Life Of Interviews (DILO)

An in depth interview with your client base to assess and establish the 6 paths