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"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
How Successful Companies Adapt to Global Competition
By: Peter Koeppel
Published: 10/06 - ERA |
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The global marketplace is changing rapidly and competition is fiercer than ever. Asian
companies are beginning to eclipse U.S. and European rivals in a range of industries, according to Business Week.
Toyota will soon surpass General Motors as the largest auto manufacturer and the market cap of
several Indian service companies are now approaching the size of General Motors. In a recent issue, Business Week
explored ways that successful companies are adapting and staying ahead of the competition, which is information any
direct marketer could benefit from.
Differentiation
Industries are under attack from competition that didn't exist a few years ago. For example, eBay is taking on the
major telecommunications companies through their free Internet phone service Skype. Google's email and word-processing
services are taking on Microsoft and Google's advertising services are challenging Madison Avenue. Instead of
fixating on competitors, companies that are standing out in the global marketplace are finding ways of
differentiating themselves by creating new markets. In today's business environment it's sometimes more important to
be unique rather than the biggest player in your industry. Whole Foods is an example of a smaller grocery retailer
that found a profitable niche and brand loyalty among a group of customers interested in a healthier and more
eco-friendly lifestyle. (Business Week).
Developing New Markets
Cirque du Soleil, Apple and Starbucks are examples of companies that created new markets and have reaped the
rewards from creating innovative products, according to Business Week. How profitable can it be creating a new
market vs. developing a product that is merely a brand extension? Research contained in a book Blue Ocean
Strategy by W. Chan Kim and Renee Mauborgne showed that "86% of product launches that were line extensions accounted
for 39% of the profits from all new-business launches from 108 companies tracked, but the remaining 14% of product
launches that represented new markets accounted for 61% of profits!" (Business Week) The lesson here is that you
don't have to be mega brand to be profitable.
Customer Service, Personalization and Efficiency
Understand what your customers want and use that information to your advantage. Google instantly surveys millions
of consumers and businesses that have websites that link with one another. This allows them to produce better
search results than their competitors, according to Business Week.
The trend towards mass producing products is also declining. Successful companies like Dell and Land's End are
supplying customers with customized computers and clothing, rather than trying to mass produce products appealing
to the broadest audience. It's also not enough to differentiate your company today by just being the low cost
producer. But it is important to be efficient, in order to remain competitive, according to Business Week.
Competition is constantly evolving in today's marketplace and the companies and their leaders that are in touch with the
ways that winners are differentiating themselves are going to stay a step ahead of the competition.
Click Here to view the entire article
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