Yes. Obvious & TRUE.
Price is the ONLY differentiation your company ofter to the customers? Think Twice about your business strategy. Today cut throat competition forces many businesses to merely compete on price. However this strategy may get u immediate business but will not take you long way in business.
Thin margin to get business is riskier than more margin but less business. Mere volume is without adequate profitability is company on steroids. High on workout and low on proteins. As with high workout muscles break down in our body & without adequate protein it cant be built , similarly with high turnover without adequate margin , business breaks down. Yes unsustainable activities without capability to invest for future sustainable activities like research and innovation or talent attraction and retention.
Secondly most critical are the differential factors that will decide the business volume other than price. What value you can design within your product. We buy branded products by paying premium. What differentiation brand offers ?? Comfort and confidence that product is of reasonable quality, customer service would be good if not outstanding, complaint would be handled professionally and with care, reasonable exchange policy and service centers.
Therefore when Price has become a major deciding factor, offering a WOW !!!! factors in your product and service design is very critical to become & remain competitive. Compete on WOW factors, there is not many players there. Brands like Apple , Virgin , Starbucks, Amazon { In India unfortunately service excellence and WOW factors are missing from product and service design ( pl share brands which matches best in the world brands in customer experience & service excellence ) } rare yet or hence sustainable. Customer will stay with these brands irrespective of price of their offerings.
Next time when you get the deal merely on the basis of price, its an ALARM, think inward and check your business strategy and product and service design. It requires IMMEDIATE attention { & action too} .
Therefore when Price has become a major deciding factor, offering a WOW !!!! factors in your product and service design is very critical to become & remain competitive. Compete on WOW factors, there is not many players there. Brands like Apple , Virgin , Starbucks, Amazon { In India unfortunately service excellence and WOW factors are missing from product and service design ( pl share brands which matches best in the world brands in customer experience & service excellence ) } rare yet or hence sustainable. Customer will stay with these brands irrespective of price of their offerings.
Next time when you get the deal merely on the basis of price, its an ALARM, think inward and check your business strategy and product and service design. It requires IMMEDIATE attention { & action too} .
