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Strategies for Success: Navigating Competition in Business

Chapter Four discusses becoming a player in business through strategic partnerships and competitive tactics. Key insights include understanding market dynamics before entering and how to leverage relationships with customers, suppliers, and even competitors. This section offers practical strategies for securing payments for bids, minimizing hidden costs, and enhancing market positioning. It emphasizes the importance of collaboration and creating win-win scenarios to foster a larger market presence, ultimately advocating for smart competition in various business arenas.

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Strategies for Success: Navigating Competition in Business

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  1. Chapter Four“Players” Jennifer Mele and Molly Patrick

  2. Becoming a Player Bittersweet Success: Holland Sweetener & Monsanto Another Coal Porter: Norfolk Southern & CSX -Should have sold competition -Could have been “Paid to Play”

  3. Becoming a Player Cont… • Answering the Call: McCaw & BellSouth -Both companies were “Paid to Play” -BellSouth recognized who stood to gain • Look at the whole market before you enter -competition is valuable, don’t give it away -get paid to play

  4. 7 Ways to Get Paid to Play • Ask for contributions toward your bidding expenses. • Ask for a guaranteed sales contract • Ask for a last-look provision • Ask for better access to information • Ask to deal with someone else • Ask to bid on additional pieces of business • Ask the customer what he would pay

  5. 8 Hidden Costs of Bidding • Better uses of your time • When you win business, you lose money • The incumbent can retaliate • Your existing customers will want a better deal • New customers will use the low price as a benchmark • Competitors will also use low price as a benchmark • It doesn’t help to give your customers’ competitors a better cost position • Don’t destroy your competitors’ glass house

  6. Calling all Players • What to do when a customer wants you to match a bid… - People make up bids - Remind the customer of your track record - If customer values the relationship, you won’t need to meet it entirely - May be better to let them go

  7. Bringing in Other Players • Bringing in Customers • Bringing in Suppliers • Bringing in Complementors • Bringing in Competitors

  8. Customers Why bring in customers? - it’s a bigger pie - more sales - more profits - lowers the added value of all the existing ones

  9. Customers How to bring in customers - educate the market - pay them to play - stimulate complementary products - become your own customer

  10. Suppliers Why bring in suppliers? - no one supplier is essential - buyer becomes stronger How to bring in suppliers - pay them to play - form buying coalitions - become your own supplier

  11. Complementors Why bring in complementors - raises your added value - the more the merrier How to bring in complementors - form a buying coalition of behalf of customers - pay them to play - become your own

  12. Competitors Why bring in competitors - pushes you to be your best - increases customer interest How to bring in competitors - license your technology - create second sources - promote internal competition

  13. Changing the Players • Who stands to gain from your entry? • Should you play? • Changing the players - customers - suppliers - complementors - competitors

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