Marketplace Strategies you can adopt when creating your products
The Vendasta Vendor Centre offers you the ability to create your own product and distribute it to over 3 million businesses. How then should I pick a strategy for a winner product, with careful crafting of strategies.
Michael E. Porter’s in his book discussed 3 competitive strategies we can apply before creating our products:
- Cost leadership strategy: focuses on increasing profits by reducing operating costs and charging lower prices. To implement this strategy successfully you will need to be able to keep the cost of your products low. It’s essential that you beat your competitors on cost so you’ll need to continually monitor and reduce your product costs.
- The differentiation strategy: focuses on making your product or a service attractive and unique in comparison to those of your competitors for example you might specialize in a particular feature or unique service be renowned for your excellent customer service or have a highly valued brand image you will need to be creative and innovative and be able to provide high-quality products or services for this strategy to work. Sales and marketing also play a vital role in this strategy for it to be successful and you need to make sure that you stay ahead of new trends in your industry. Agility is very important here.
- The focus strategy: concentrates on developing products or services for a niche market using this strategy requires a deep understanding of your customers needs, your aim will be to meet these needs by providing that “special something extra” that customers can’t get anywhere else you also need to decide whether to adopt cost leadership or differentiation strategies. This is because the focus strategy is not normally enough to win substantial market share on its own, choosing the right strategy for your product is crucial to gaining a competitive edge over your rivals.
By using porter’s generic strategies model you’ll be able to identify the strategy that you need to put in place to make your products successful. Try it now and start creating and packaging your products with Vendasta.