going up against the big guys why bigger isn’t always better a presentation to the ccim-irem...
TRANSCRIPT
Going Up Against the Big GuysWhy Bigger isn’t Always Better
A presentation to the CCIM-IREM Success Series 2009October 17., 2009 Honolulu, Hawai’i
Dr. Lowell “Duke” Kuehn
9812 Island View Lane, University Place, WA 98466 360.791.8450 [email protected] www.pnwconsult.com
This material is copyrighted (2009) to Pacific Northwest Consulting Services, Inc, and Dr. Lowell “Duke” Kuehn.
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• you correctly attribute its source• don’t make any money off of it.
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Duke
October 17, 2009
Many metaphors:
David and GoliathJack and the Giant1969 Super Bowl: Namath Jets beat
Colts1980 Olympics: US Hockey beats
Soviets.
Best may be one whose 65th anniversary we celebrate next week:
The Battle for Leyte Gulf, Samar Island
October 25, 1944
Basic strategies for beating big competitors.
1. know and solidify your market position2. know and slice off edge of their market position3. pick your fights4. exploit your advantages, their disadvantages5. supplement your size6. adopt better tools, faster7. provide superior, customized service
This presentation builds upon two powerful concepts you need to understand absolutely and put into execution perfectly.
Market Position Competitive Advantage
Think of these as David’s slingshot and the rock.
Market PositionImagine the market you operate in as a three dimensional space and the business you conduct and the clients your serve define that space.
Each side of the cube describes some feature of your business.
For example:
• class B office buildings• located on the south end of town• several medical facilities
All Types of SpaceYou = Class B office buildings
ALL TY
PES BUSIN
ESS
Yo
u = medica
l
You occupy a specific space in the cube… that’s your POSITION or NICHE.
ALL
LOCATIONS
YOU=
South
End
All Types of Space
ALL TY
PES BUSIN
ESS
BMedicalS. End
ALL
LOCATIONS
Take a second,think about your niche.
Defined?Known?Unassailable?
Better to think of your position as a FORTRESS.
In your market your competitors occupy their own positions and you need to face all of them, big or small.
They will and do compete for position and they WILL try to squeeze you out.
Competitive Advantage (or disadvantage).
BMedicalS. End
The market position you occupy possesses certain advantages by virtue of:
DEFENSIVE SAFETYPOTENTIAL for GROWTH
To compete, you need to know this for yourself as well as any competitors near your position.
When you master and apply these the conceptsof market position and competitive advantage you are ready to take on ANYBODY, not just the big boys.
You can conduct a competitive analysis and figure out where and when to compete (or not).
Firm Defensive Strength
Growth Potential
Weakness
US Inc. South End South End Medical
Big Guy 1 Whole City Wherever they want
Electronics
Big Guy 2 North End Government Medical
Medium Guy Westside Medical Class B
Small Guy South End Medical Manufacturing
So
Rule # 1: Know and solidify your market position.
Rule # 2: Know competitor’s market position and slice off the sides that are vulnerable.
Rule # 3: Pick your fights.
Rule # 4: Exploit your advantages, their disadvantages.
Rule # 5: Supplement your size.
Rule # 6: Adopt better tools, faster.
Rule # 7: Provide superior, customized service.
GOOD LUCK!
For a copy of this presentation, send ane-mail to Duke Kuehn,
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Notes from Duke's CasebookVolume 5, Issue 1 The Cynical and Resistant Edition May 2008
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