actively courting potential clients. After working with a few law firms, I realized I could easily develop a strategic position, a specialty, in marketing law firms. Eureka!
There was just one hitch: I was bored out of my mind. Even though there was an excellent fit with industry trends, market needs, competitive openings, and my skills, the work just wasn’t a good fit with my interests. Instead, I chose to differentiate my practice on the basis of the nature of the service I offered—business plan development—rather than the market segment.
Your company’s strategic position can be based on your market niche, type of product or service, quality of customer service, pricing, convenience, or anything else that will significantly distinguish you in a meaningful way from the others out there who offer similar services or products. There’s no one “right” position, and your positioning will change and evolve over time. But defining your strategic position is a critical way to answer that nagging question, “What business are you in?”
Finding Your Niche
We’re all familiar with the concept of specialists. If you discover you have a heart disease, for instance, you’re going to make an appointment with a cardiologist. After all, you want a doctor who has specific knowledge and experience with your particular problem and concerns. But have you ever thought about becoming a specialist yourself—finding a specific niche for your business to serve?
Imagine, for instance, that you wanted to start a housecleaning service. In most communities, there are hundreds of housecleaners. You’d have lots of competition.
But what if you specialized? What if you only used natural or non-toxic products? Then, you might name your business something like “Healthy House Non-Toxic Cleaners.” You’d advertise in publications or join organizations serving customers who are particularly concerned about keeping their homes safe—perhaps parents of young children or animal owners. Assuming there were enough such potential customers in your community, you’d have an instant way to set yourself apart from the competition.
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