Introduction
In a rapidly changing and complex world, the strategies for how organisations compete are critical for their continued survival and growth. The way in which a company competes can be the difference between success and failure in a competitive environment, and sometimes even more importantly, the difference between achieving extraordinary success versus a moderate one.
In the current market, new and emerging industries are seeing an unprecedented level of competition, as companies adopt ever more strategic approaches to their long-term success. This article will discuss the various strategies available to organisations when competing in new and emerging industries, and the importance of leveraging both traditional and modern strategies in order to maximise competitive advantage.
Traditional Strategies
One of the most important aspects of competition in new and emerging industries is the ability to utilise traditional competitive strategies. These strategies, which have been used since the dawn of commerce, can still be used successfully in today’s highly competitive markets.
For example, ‘cost leadership’ is still a popular strategy for new and emerging businesses. This involves cutting costs as much as possible, either by increasing efficiency, reducing overhead, and/or using suppliers who offer better prices than competitors. Companies can also employ ‘differentiation’, whereby they create a unique positioning for themselves that sets them apart from their competitors. That might involve offering a different product or service, or establishing a strong brand identity.
In terms of pricing, ‘penetration pricing’ can be useful in getting a foothold in a new industry. This involves setting prices low in order to attract customers quickly and maintain a high market share. However, pricing can also be used as a strategic weapon, such as ‘premium pricing’. This involves setting intentionally high prices in order to attract high-value customers, while also signalling a sense of exclusivity.
Modern Strategies
In addition to traditional strategies, there are a variety of modern strategies that organisations can employ when competing in new and emerging industries. These strategies are often focused on developing and leveraging a business’ online presence.
One of the most important modern strategies is ‘digital marketing’. This involves leveraging digital channels such as search engines, social media, and email to build an online presence and drive traffic to a business’ website. Companies can also embrace ‘content marketing’, which involves creating and sharing valuable content with potential and existing customers in order to build brand awareness and trust.
Building an audience through social media is also a powerful way to gain a competitive edge. Companies can grow their followers and engage with them through activities such as competitions and promotions. Another important strategy is customer retention, which involves creating loyalty programs, rewards, and customer service initiatives to keep customers coming back.
Conclusion
Organisations competing in new and emerging industries need to be both creative and strategic when it comes to their competitive strategies. Leveraging traditional strategies such as cost leadership, differentiation, and pricing is essential for success, but businesses need to make sure that they also employ modern strategies such as digital marketing, content marketing, and customer retention in order to maximise their competitive advantage. Doing so will enable the business to stay ahead of the competition and continue to achieve success.
