The world is changing—fast.  If you are a business owner, you know how quickly your company can become commoditized. 

Commoditization can mean lower prices, lower margins, and (if you don’t do something about it soon), the demise of your business.

Over the last several months, I have discussed the notion of commodization with several hundred successful entrepreneurs.  We have discussed this phenomenon in our TABBoards and are developing specific tools and strategies to address it.   Many owners see great opportunities in hyper-rapid change, others are petrified.  Just about all agree that if they do not lead and stay differentiated, that they can quickly get trampled.  The question is HOW.  Here are a few tips to prevent you and your company from becoming a commodity:

1.  Develop a Proactive De-Commodization Strategy:    If you think your product or service is so unique that you are immune, you may want to think again.  Over one million people have viewed the Did You Know 3.0 video.  If you haven’t seen it, please take 5 minutes to check it out on YouTube.   Those who have watched it are struck not only by the speed at which the world is changing, but also the rate with which this speed of change is increasing.  In your business planning, make sure to incorporate the fact that commodization happens 10 to 1000 times quicker in the Information Age than in previous generations.

• Develop an Innovation Mentality:  This is not an easy feat.  It requires an unconditional commitment from the owner and from the entire leadership team.  Changing the way people think can be tough, but the rewards of developing an Innovation Mentality will be well worth the effort in the face of changing marketplace that all businesses face today.

• Develop a World Class Sales Organization:  Your competitors are the biggest readers of your website and marketing material. If a product or service is valuable and there is a decent sized market for it, someone, somewhere will soon be trying to duplicate it.   An effective, differentiated, scalable Sales Culture is something that can not be duplicated.  I have developed a simple checklist you can use to create a high-performance World Class Sales Team.  If you’d like a copy, click here and write “WCSO Checklist” in the Subject line.  

• Develop your Reputation by Becoming Your Industry’s Most Trusted Advisor:  Products and services can be copied quickly, but overcoming your reputation as being the most trusted source is difficult.

• Become a TAB Member:  Many of you who are reading this are already members of The Alternative Board and have developed an edge over your competitors by virtue of the proprietary TAB process.  This process includes peer learning, accountability coaching, effective planning tools, operational and financial assessments, business education and much more.  If you are not a TAB member, but have an interest in learning more or seeing if you qualify for membership, call 512-331-1822 or click here.

In our rapidly changing global economy, the great idea that you worked so hard to develop into a business advantage can likely be re-engineered in India, China, or a host of other places that can deliver your product or service at a fraction or your cost.   An idea that took years to pirate a generation ago can today be re-manufactured and delivered in a period of weeks or months.   By following these simple steps, you can create an amazing competitive advantage for your company.   

Copyright ©   Joe Zente  2009.   All Rights Reserved.

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