Many small companies face stiff competition in an attempt to penetrate a competitor dominated market with their product.
Some are bought out by larger firms , some smaller firms may even activate the intention for a possible buy out. I figure the basis for this among other things might be cash.
Maybe you are not influencing the market because you think you are not 'known'.
-
Well, NO, you need more of strategy than cash.
Don't wait for cash before you compete--Battlefield is what I call the current market place. Whether you are in the FMCG industry, energies or clothing you need to be a tactical to succeed.
Sit tight, I am going to school you.
This is the first strategy to enable your firm be a force to contend with in the market place. Send shivers down the spine of major industry players, let them have nightmares and get them to throw money at you for a possible buyout.
I am going to help you discover new sales strategies which you may call the saleXTRACT.
These strategies are based on military principle carefully coined or moduled to describe the current market place.
Lets Start with Attrition.
Attrition -
The action or process of gradually reducing the strength or effectiveness of someone or something through sustained attack or pressure.
The gradual reduction of a workforce by employees' leaving and not being replaced rather than by their being laid off.
Lets stick to the first definition. Definition (1)
Definition (1)- redefined: the action or process of reducing the market share or competitiveness of a market leader through sustained market manipulation by another firm usually market follower or entrant.
TACTICS-ATTRITION(m+c+s)
.Manoeuvre--------------------------m MIV=(mx+cx+s)/M........... Market Impact Value
.Concentration of Force............c let x=your measurable effort
.Surprise...................................s M=market share
Market Impact Value--the extent to which you can affect the behaviour of a superior competitor is
Formula Explained
The extent to which you can affect the behaviour of a superior competitor directly depends on your measurable effort in m,c and s divided by the Value of the market share of your competitor.
The LOWER the MIV index the greater the tendency to cause a stir in the competitors sales activity thereby gaining a market share.
Manoeuvre--be versatile, quickly provide tailored customer service and narrow down on what customers really want.
Concentration of Force- narrow your sales target and be aggressive towards sales, generate leads, hit the numbers, followup, make calls that bring in sales
Surprise--develop sales methods that baffle competitors, sell in a unique way.
Measuring your Efforts
Simply measure your efforts with set targets and assign values to your success.
Manoeuvre may measured with customer satisfaction rate on a scale of 0 to 10
Concentration of force may be total converted sales over sales leads say 1 converted sales to 10 sales leads
Surprise ---not sure hmm... lets say lets make it a constant say 0.01 so s=0.01
Illustration
company z is a market entrant or smaller firm compared to Z with estimated market share of 20%
Measuring the MIV(before implementing SalesXTRACT-attrition)
zm=5-----------average customer satisfaction rate
zc=0.1----------1 converted sales to 10 leads
zs=0.01--------constant at 0.01
calculating the MIV
MIV(z)=(5+0.1+0.01)/0.2 = 25.5----------NOT GOOD (A)
Measuring the MIV (after implementing SalesXTRACT-attrition)
zm=9---------------high customer satisfaction rate
zc=8----------------8 converted sales to 10 leads because you have narrowed your
zs=0.01------------constant at 0.01
calculating the MIV
MIV(z)=(9+8+0.01)/0.2=17.01--------------BEST (B)
From the calculations above this clearly shows that firm z after implementing the XTRACTcan affect the behaviour of Z.
STRATEGY CONCENTRATION
You are not in to takeover, you are in to cause a stir and or bite a piece of the cake.
BOTTOM LINE
Just structure your firm to bring your MIV down closer to 1
