Author: 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.

Do “Moat” Strategies Boost Growth and Profitability?

A “moat” is what Warren Buffet calls a competitive advantage and is one of the first things he looks for when evaluating a stock. Why? A competitive advantage indicates the company will likely generate growth and profit for an extended time.

Profitability depends on the industry, the nature of the advantage (e.g., patented technology, substantial brand equity, cost leadership, network effects), and the company’s execution. However, there are some consistent patterns:

Above-Average Returns on Capital. Companies that establish a clear competitive advantage often earn a Return on Invested Capital (ROIC) significantly above their industry’s and anywhere from 10–20 percentage points higher than the median.

Higher Profit Margins: A well-defended advantage (for example, a patented innovation or robust network effects) can allow 2–3 times the margin of competitors lacking the same differentiators. 

Sustained Outperformance: Research tracking public companies with identifiable “economic moats” (sustainable competitive advantages) often shows they outperform market averages in total shareholder return over multi-year periods.

Greater Pricing Power: A strong competitive edge can translate directly into pricing power. This leads to more stable and higher profit margins relative to peers. Top-tier B2B suppliers typically charge premium prices without losing market share.

 Lower Customer Acquisition Costs: Companies with brand loyalty or superior product-market fit often enjoy lower acquisition and retention costs. Over time, those savings bolster profitability and offer an advantage against competitors struggling to gain traction.

Net: While exact figures vary, the overarching theme is clear: firms that build, nurture, and protect a genuine competitive advantage consistently demonstrate higher profitability and stronger financial performance than those operating without a competitive advantage.  

You can visit my website for more information on creating a competitive advantage or email me any questions or comments — positive or negative.   – I would also like to learn more. 

You can also get more short,  2-minute reads, like this one on my website at “Quick Insights.”

Cheers,  Jim Zitek

I help B2B companies create their unique competitive advantage.

In an age of limitless options and instant gratification, a significant differentiator is a competitive advantage that prioritizes the needs, preferences, and experiences of the buyers who matter most.

Unlike a standard approach, a customer-centric competitive advantage requires continuous engagement, empathy, and a willingness to tailor offerings as customers’ requirements evolve. This ensures that you become the brand of choice because you don’t just focus on selling something—you focus on solving something.

This customer-centric, competitive advantage ensures you become the brand of choice by prioritizing customer needs, experiences, and relationships above all else. In other words, you don’t just focus on selling something—you focus on solving something.

How a Customer-Centric Competitive Advantage Delivers Results.

Increased Loyalty: Customers are much more likely to become loyal when they feel valued by personalized service and prompt support. Over time, this loyalty will elevate each customer’s lifetime value and boost overall profitability.

Higher Customer Lifetime Value: Focusing on customer needs builds trust, leading to repeat purchases, upgraded subscriptions, and cross-selling opportunities. Over time, this deep engagement elevates each customer’s lifetime value and boosts overall profitability.

Organic, Word-of-Mouth Growth: Satisfied customers tell about their positive experiences with friends, family, and social networks—an invaluable form of organic marketing.  Authentic testimonials from delighted customers can amplify your reach without the high costs of traditional advertising.

Defensible Market Position: A robust, loyal customer base insulates you against competitive threats. Rivals may try lower prices or new features, but a deeply engaged customer community is less likely to defect when it feels a brand truly listens to and addresses its needs.

Adopting a customer-centric competitive advantage isn’t about superficial gestures—it’s about building a business that thrives on continuous dialogue, empathy, and innovation.

You can visit my website for more information on creating a competitive advantage or email me with any questions or comments—positive or negative.   I also like to learn.  

You can also get more short-to-the-point messages like this one on my website at “Quick Insights.”

Cheers,  Jim Zitek

I help B2B companies create a competitive advantage that delivers more profits.

In today’s crowded marketplace, just being competitive isn’t enough. You need a powerful and creative competitive advantage strategy to achieve lasting profitability. 

Below are five proven strategies for building and maintaining a powerful competitive advantage, which can help you stand out in a crowded market.

A Differentiation Strategy that increases your pricing power. A higher perceived value translates directly into healthier profit margins.

Customer Loyalty Strategy that reduces your acquisition costs. Loyalty reduces the need to spend on attracting new prospects, lowering overall marketing costs while boosting profitability.

A Cost Leadership Strategy creates operational efficiency. By operating more efficiently, businesses reduce overhead expenses and increase profit per unit sold.

Niche Focus Strategy to Increase Market Share. This strategy often leads to better product-market fit, enabling you to capture a larger niche slice and earn premium pricing.

Innovation Strategy Secures Long-Term Profitability. Innovative companies often use patented technologies or proprietary know-how, creating barriers for competitors and ensuring long-term revenues and profits.

A clear, well-executed Competitive Advantage Strategy fuels profit growth by making a business more resilient, efficient, and valuable in customers’ eyes. 

Also, as consumer needs and market dynamics evolve, regularly revisiting and refining that strategy ensures you stay profitable and remain one step ahead of the competition.

You can visit my website for more information on creating a competitive advantage or email me any questions or comments — positive or negative.   – I would also like to learn more. 

You can also get more short-to-the-point messages like this one  on my website at “Quick Insights.”

Cheers,  Jim Zitek

I help B2B companies create their unique competitive advantage.

Because a Competitive Advantage gives a company a unique edge, it allows it to outperform its rivals, which plays a pivotal role in how investors evaluate potential opportunities.  

Whether it is cost leadership, strong brand recognition, patented technology, or superior customer service, a company’s competitive advantage influences everything from its profit margin to its long-term growth trajectory. Following are a few examples.

Stability and Predictability of Earnings: When a company commands a distinctive advantage in its market, it typically enjoys more stable earnings. 

Pricing Power and Profit Margins: A competitive advantage often confers pricing power. 

Long-Term Growth Prospects: A competitive advantage typically aligns with sustained growth potential. Without it, a company might experience early success but risk losing market share once rivals catch up or new entrants appear.

Premium Valuations: Because competitive advantages can lead to above-average returns, companies that possess them often trade at premium valuations. 

Reduced Downside Risk: Companies with a strong niche or enjoy strong consumer loyalty tend to see less severe revenue declines when recessions hit.

A competitive advantage has significant value for investors. It’s a key indicator of a company’s potential to generate consistent profits, maintain growth, and mitigate risk. 

Note: Competitive advantage is one of the first three metrics that Warren Buffet looks for when evaluating a stock.  

You can visit my website for more information on creating a competitive advantage or email me any questions or comments — positive or negative.   – I would also like to learn more. 

You can also get more short-to-the-point messages like this one  on my website at “Quick Insights.”

Cheers,  Jim Zitek

I help B2B companies create their unique competitive advantage.

 Creative techniques can be tremendously helpful in decision-making because they open new perspectives, foster fresh thinking, and break us out of habitual ruts. By applying creativity to decision-making, you can uncover innovative solutions, identify hidden risks, and see a broader range of possible outcomes.

Following are three of the many ways that creative techniques can help.

Expand Your Options. Don’t limit yourself to the obvious choices. Many creative techniques, like SCAMPER (Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, Reverse), can help you generate a larger pool of ideas. The more options you have, the more likely you discover non-obvious solutions.

Identify Hidden Assumptions. Creative tools like lateral thinking enable you to shift perspectives, break free from entrenched patterns or assumptions, and generate fresh ideas and innovative solutions. Challenging assumptions opens the door to breakthrough ideas that you might otherwise dismiss too quickly.

Increase Collaboration. Group creativity sessions like brainstorming can energize and expand options. When people feel safe sharing offbeat ideas, a richer collection of perspectives emerges, leading to more informed, well-rounded decisions.

Those are only a few creative techniques you can use to expand your perspective and challenge your assumptions to make better decisions. It is estimated that you only have to be correct 53% of the time to beat the CEOs of major companies.

You can visit my website for more information on creating a competitive advantage or email me any questions or comments — positive or negative.   – I would also like to learn more.

You can also get more short-to-the-point messages on my website at Quick Insights.”

Cheers,  Jim Zitek

I help B2B companies create their unique competitive advantage.

Many people are confused about the differences between these two concepts.  They are related but not the same. 

A value proposition explains how the company’s product or service solves a specific problem, delivers benefits, or fulfills the needs of a target customer. It highlights the unique value the company offers.

A value proposition is broad-based and concerned with what customers gain and how to attract customers. It may not be unique, but it must resonate with customers. The value proposition is critical for engaging your target audience and building trust. It answers: “Why should I buy from you?“

A competitive advantage focuses on the company and its position relative to competitors. It has a unique characteristic or purpose that allows the product or service to outperform its competitors. It represents the company’s ability to deliver superior value or operate more efficiently than competitors.  

A competitive advantage is more narrow and focuses on how to outperform competitors and highlight specific strengths relative to rivals. It answers the question, Why should I choose you over others?” It allows you to defend your position in the marketplace.

You can visit my website or my QuickInsights for more information on creating a competitive advantage or email me any questions or comments — positive or negative – I like to learn also.

Cheers,  Jim Zitek

I help companies create their unique competitive advantage and increase profits.