Question: What makes a company successful?

Price isnt everything

It appears some companies are still stuck in the dark ages of competing solely on price and unique selling points (USPs). Others have moved on, realizing that pricing is a short term tactical issue rather than a long term success differentiator The rapidity of market and technological change means that what is unique and undercuts the competition today will be leapfrogged tomorrow.

Its not what you do, but the way that you do it
The survey reveals that having the best minds on the job, being flexible and adapting to the market and business innovation are key differentiators for successful businesses (Figure 4). It is these attributes that enable them to constantly put themselves into the customers agenda and mindset, and to create a seamless interface between the customers objectives and the delivery This very much reflects the idea of creating customer delight. World class service is all about delivering that unexpected added value to the customer experience. The challenge, and the secret of success, is to keep it moving forward because todays delight becomes tomorrows expectation. The successful companies constantly push out the barriers this is where business and management innovation come to the fore. The concept of business innovation is fast gaining ground as it is increasingly recognized as being the key to building sustainable advantage. Exceptionally successful companies have found ways of harnessing innovation and creativity in everything they do, to ensure not only that the products or services that they sell are constantly refreshed, but also that their business and management processes are dynamic and mobile. It is this characteristic in businesses that enables them to achieve the necessary flexibility to adapt to rapidly changing market conditions New products and services can be reverse engineered and eventually copied. They may delight the customer now but for how long? Really creative processes, however, are far more difficult for competitors to copy because they are hidden within the inner workings of the firm.

Winning the sale

It is the value proposition that underpins the brand, rather than the brand itself they focus on to achieve high levels of customer retention

Lessons for business

A good internal innovation culture is typically backed up by recognizing the importance of brand, design, R&D and other investments that turn creative ideas into product and service reality. The lessons for firms is clear: foster creativity and innovation internally, think well ahead about market changes and opportunities, and be prepared to invest and keep investing if you want to build your competitive advantage

10 ways to create competitive advantage

1. Gain an integral understanding of the needs of the customer and make sure that the business is structured at every level to deliver them. 2. Do everything possible to enhance the customer experience at every interaction with the business. 3. Focus on developing an environment of corporate maturity within which the creativity of staff can be released ensure that performance expectations are clearly communicated. 4. Ensure that reward structures are aligned with strategic objectives so that staffs are incentivised to behave in ways that contribute effectively to business achievement. 5. The speed of change means that while quality of product remains important it is the way in which the business interfaces with its customers that will differentiate one business from another. 6. Dont scramble to be first to market at all costs if this would mean compromising quality or processes. It is better to be third with a flawless product than first with a substandard one. 7. Respond strategically, not just tactically to market demand. Tactical, decisions are necessarily short-term and must be part of a longer-term strategy. 8. Dont customize and try to compete on price at the same time; and never customize unless it delivers margin 9. Its always more cost effective to understand your market and to be responsive and flexible to changing market needs. 10. As a strategy, dont compete on price, compete on service delivery. Recognize that if you are lucky enough to be able to compete on price as a short-term tactic, this will not be sustainable in todays market conditions. In conclusion, be hungry, dont wait for others, and take charge of the agenda. These would be the overriding messages for businesses that wish to create sustainable competitive advantage

What makes these companies so different? (successful)

They Hire The Best: Successful companies know that finding the right person for the position is more important than filling the spot. They are willing to pay a little extra to find that right person instead of being "penny wise but pound foolish". The right manager will save the companies hundreds of thousands of dollars worth of productivity. Ensuring the right candidate does require background checks, employment checks, drug screens and references. They Don't Micromanage: If you have hired the right people for the position you don't need to micromanage them. Micromanaging causes employees to be less creative and less productive. Successful employees know how to do their jobs and can be creative if they are given the opportunity to be so. Micromanaging only forces them into a little bottle where little new and innovative approaches can be developed. They Live Customer Service: The industrial societies of yesteryear have been replaced by the service society. Thus, customer service is hugely important in attracting and maintaining customers. Successful companies treat customers well, resolve their issues quickly and fulfill their promises. They Have a Culture: Strong companies have a strong "can do" culture which encourages people to get the job done. They don't say "we can't" but prefer to say "how". Encouraging this culture come from the company literature, through verbal communications and the expectations of employees They Know their Customer: Most successful companies don't try and sell to everyone and their brother. Instead, they conduct market research on their most lucrative customers and sell to them. They target their marketing to attract the most lucrative customers who are likely to keep returning.

They are Globalized: Even though a company can function pretty well in a national economy the most successful companies can compete worldwide. They do this through the use of telecommunications strategies, virtual offices and catering their services to the culture they are selling in. They are Price Sensitive: Strong companies know what they can charge and offering premium services for their premium products. They earn a higher margin of profits and brand their products. Having a brand name allows people to recognize their products as superior

Tips for Running a Successful Small Business

Get and keep a competitive edge: Building a competitive edge into the fabric of your business is crucially important to long-term success. Some ways to get this edge are by knowing more than your competitors, making a product that is hard or impossible to imitate, being able to produce or distribute your product more efficiently, having a better location, or offering superior customer service. One way to hold on to your competitive edge is to protect your trade secrets -- confidential information that gives you a competitive advantage in the marketplace. Examples of trade secrets include customer lists, survey methods, marketing strategies, and manufacturing techniques. To protect your trade secrets under the law, you need to take steps to keep the information confidential. This includes marking documents "Confidential," using passwords to protect computer information, using nondisclosure and/or noncompete agreements, and limiting access to employees with a reasonable need to know the trade secrets. Another way to keep your competitive edge is to react quickly to bad news. Once you see that your business faces some kind of adversity, you need to come up with a plan to deal with it immediately. This may involve moving your offices, introducing a new product or service, or developing a better way to reach customers. Hire and keep good people: Your goal should be to hire and retain truly excellent employees -- not just reasonably competent ones. A highly competent and truly enthusiastic employee is at least two and sometimes even three times as valuable as a person of average skills. To create a stable and happy workforce, it's essential not only that your employees (and independent contractors) believe they are being fairly treated, but that your business is worthy of respect. Employees and contractors who like their work will represent you well on and off the job. And customers will more likely be loyal to an upbeat business -- and are more likely to recommend it to their friends