Most companies, especially the ones of small and medium size, have to cope with a clever competition, even at the international level. The continuous and increasing difficulties they encounter are pushing entrepreneurs to rethink their strategies, questioning the entire work. To make correct action plans, companies must take care to differentiate from competitors and to implement initiatives that meet their business. These initiatives must have distinctive features, such as to attract customers and generate a competitive advantage. The latter is the system to increase the company’s profitability, as new customers produce a greater volume of sales. Next, let us see how to improve the company’s competitiveness.
The first step to improve the company’s competitiveness is to aim for a benefit based on cost containment. It represents a pivotal point to compete in today’s complex economy. Cutting costs, in fact, makes the company more competitive. The management methods to reduce extra costs must involve all business functions, from beginning to end. We have to analyze carefully the excess inventory, any inefficiency of transport, product defects and so on.
The companies often focus only on sales, forgetting that the primary goal should be customer satisfaction. In fact, without a focus on customer needs, the company may hinder the competitiveness of the company. You must always think that everything that is not strictly related to customer satisfaction is not essential. Based on this line of thought, you can also eliminate all the extra costs associated with it.
Another strong point is to provide an exemplary service. In fact, customer service is not an accessory, but an integral part of the product itself. To excel in this, we must focus first and foremost on simplicity and clarity, and then over time too, as you must be prepared first and most of the competition. In addition, you need to focus on readiness, as you have to understand the customer’s needs and offer the ideal solution because the service must begin with a consultation prior to the sale and post-sales support to end.
Finally, in addition to analyzing the factors within the company itself, to improve competitiveness you need to project your services outside company boundaries, leveraging on the resources of others. In fact, having to deal with an international competition, small and medium-sized enterprises may resort to strategic alliances, based on common skills and goals. In this way, even small companies with limited resources can become competitive. Such alliances can be laid between competing companies but also between companies of different sectors.