• Innovative Strategies That Create More Profits

Month: March 2025

Why Do So Many “Great’ New Product Ideas Fail?

Posted on by harborcapitalgroupinc

Estimates are that about 80% of new companies fail. There are many reasons for this, but one of the big ones is inadequate research and false facts.

Research often starts by asking family and friends about the idea. Since they don’t want to be negative, they generally say it is a good idea. Since they are not your target audience, you have only false facts.

You may contact several people you think have the problem you solve. You tell them you have a great solution to their problem and ask their opinion.

You get many different answers, from “No, we don’t have that problem” to “Yeah, it sounds like a reasonable solution.” He is not committing to anything so that he can be more positive.

You got your answer: Yes, they have the problem. Bingo! Since you don’t have a solution to sell now, you have more positive facts.

However, the problem is that you didn’t ask how they solve the problem now or how much it costs to solve it—critical questions. They may live with the problem, or the cost to solve it is minor.

Don’t tell them your great solution because they may think you are just there to sell them something. You are there to find out if they have the problem, and if so, how they solve it—and at what cost.

They may even give you some ideas on how to solve the problem. Or tell you about a different problem they need to solve.

If your research is successful, you can create or adapt your solution to one that solves their problem at the same or less cost. Now that you’ve solved the problem and have the actual facts, you need to be successful.

Visit my website or my QuickInsights for more information on creating a competitive advantage, or email me with any questions or comments—positive or negative. I would also like to learn more.

Cheers, Jim Zitek
Create Distinctive Competitive Advantages That Attract Buyers.

Clarifying Confusion: How Competitive Advantage and Positioning Work Together.

Posted on by harborcapitalgroupinc

 Confusion often arises between competitive advantage and a positioning strategy because both concepts are deeply intertwined and critical to a company’s strategy, yet they address different aspects of business success.

Understanding why people mix them up can help clarify the roles each plays in the marketplace. 

A Competitive Advantage is a unique, sustainable product or service that the competitor lacks. A positioning strategy communicates the benefits of that competitive advantage.

However, there are exceptions, like in niche markets, where a positioning strategy may be a marketing strategy aimed at different segments of the market.

A Competitive Advantage is having a unique product or service that competitors do not offer.   However, competitive advantages can also result from other aspects, such as superior technology, cost structures, brand loyalty, or operational efficiencies.

A competitive advantage’s key characteristic is that competitors should not be able to replicate or attain it quickly.

A Positioning Strategy focuses on how a product or service is perceived in the target audience’s mind. It’s about your product’s image and identity in relation to competitors. This strategy is crucial because it helps communicate the benefits derived from the company’s competitive advantage.

To successfully position your product, you need a memorable concept for people to remember. Then, stick with it.

Niche Markets and Positioning

In specific niche markets, a positioning strategy may vary, as a product’s usage or perception will be specific to that audience segment. In these cases, the competitive advantage might be how well the product is adapted to that niche segment’s particular needs and expectations.  

Conclusion

Competitive advantages relate to unique products or services and positioning strategies.

Visit my website or my QuickInsights for more information on creating a competitive advantage, or email me with any questions or comments—positive or negative. 

 

 Cheers,  Jim Zitek

I help companies create distinctive competitive advantages.

 

The Journey To a Competitive Advantage.

Posted on by harborcapitalgroupinc

Achieving a competitive advantage requires a strategic and creative approach that’s based on understanding the problem, your goals, and your timing. I have identified the basic steps to give you an idea of the process required.

The following are the structured steps and the kind of questions I will ask to get the information needed to solve the problem and then create the strategy and creative advantage. Please contact me if you have any questions. I’m happy to clarify anything.

1. Assess Internal Capabilities: Understand the company’s current position, strengths, and weaknesses.
  • What are our core competencies?
  • Where do we excel in comparison to our competitors?
  • What are our weaknesses or areas where we lag behind
2. Analyze the Competitive Landscape: Understand the market and competitor strategies clearly.
  • Who are our main competitors?
  • Which strategies are they using to attract customers?
  • How are our competitors positioning themselves in the market?
3. Understand Customer Needs and Preferences: Understand the target audience to tailor offerings to their needs.
  • Who are our current and potential customers?
  • What do customers value most in our products/services?
  • Are there customer needs that are currently unmet by the market?
4. Identify Market Trends and Technological Changes: Stay ahead of industry trends and technological developments.
  • What are the emerging trends in our industry?
  • How could new technologies disrupt our business model?
  • What opportunities can we leverage from these trends and technologies?
5. Develop Unique Value Propositions: Differentiate the company’s offerings to create a competitive advantage.
  • What can we offer that no one else can?
  • How can we differentiate our offer in a way that adds value to our customers?
  • What unique selling point will get the buyer to switch to our brand?
6.  Build Strong Branding and Marketing Strategies: Create powerful branding and marketing strategies that resonate with customers.
  • What is our brand identity, and how does the market perceive it?
  • How can we strengthen our brand recognition and loyalty?
  • What marketing channels are effective in reaching our target audience?
7. Monitor Performance and Adapt Strategies. Continuously monitor performance and adapt strategies as needed.
  • What metrics will we use to measure our competitive advantage?
  • How often will we review our strategies and performance?
  • What mechanisms do we have to adapt quickly to market or competitive changes?

By addressing these steps and asking many questions, we can identify and develop long-term, sustainable competitive advantages. This approach also enables a dynamic strategy that can adapt to market and customer preference changes, thereby maintaining a leading position in the industry.

Why Lateral Thinking Unlocks Creativity To Solve Complex Problems

Posted on by harborcapitalgroupinc

Lateral thinking is a creative method that approaches problems indirectly to solve a problem rather than following the standard step-by-step approach. Lateral thinking can help solve complex problems because it encourages you to:

Break free from established patterns: Lateral thinking entails re-examining assumptions and looking for hidden constraints that may limit potential solutions. By challenging what is typically “taken for granted,” new possibilities can emerge.

Combine disparate ideas: Traditional thinking follows a sequential path based on past experiences or well-known strategies. Lateral thinking invites you to explore unusual connections, blending ideas from different fields or contexts. Blending ideas can spark innovative answers that might be overlooked when working strictly within conventional boundaries.

Reframe the question: Sometimes, how a problem is formulated can limit the solutions you see. By using lateral thinking, you can reframe the question—asking, for example, “Why are we approaching this from that angle?” Reframing can open the door to various potential solutions or fresh directions.

Encourage open-mindedness: Lateral thinking makes space for “mistakes” or “wild” suggestions that might initially seem unfeasible. Even when these ideas are not workable, they can lead to unexpected insights or help refine more practical solutions.

Foster a creative mindset: Problem-solving often improves when you allow free exploration without immediately dismissing unconventional approaches. Lateral thinking methods—like brainstorming, mind-mapping, or asking provocative questions—cultivate that creative mindset, ensuring that a broader range of angles are considered.

Using lateral thinking techniques in addition to vertical thinking techniques helps you overcome rigid mental frameworks, spot new solutions, and tackle complex problems more effectively.

Visit my website or my QuickInsights for more information on creating a competitive advantage, or email me with any questions or comments—positive or negative. I would also like to learn more.

 

 Cheers,  Jim Zitek

I help B2B companies create their unique competitive advantage.