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MSME

If you want to be a leader in a competitive market, do these 8 things

While testing an unproven market can be expensive and risky on one hand, on the other hand, there are clear signals about where opportunities lie.

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Here’s why you need to know your business’s competition, If you want to be a leader in a competitive market, do these 8 things
  • There is always room for a unique business model in a competitive industry.
  • The key to competition is product differentiation.
  • Being a market leader means excelling in the dimensions of people, strategy, execution, and purpose.
  • Excelling in the people category means businesses must have staff that incorporate a blend of drive, intelligence, and character.
  • Market leaders have a strategy of offering products and services in simple yet memorable ways.
  • Market leaders that have purpose connect the work they do with a larger vision that improves the world itself.

While testing an unproven market can be expensive and risky on one hand, on the other hand, there are clear signals about where opportunities lie. Hundreds of competitors can make good products. So what else is required? Here are the tips for standing tall in your competitive market and becoming a bigger fish in an already large pond.

Here’s why you need to know your business’ competition, If you want to be a leader in a competitive market, do these 8 things

Develop a new product

One of the most effective ways to break into a saturated or oversaturated market is by offering a product that is new to the industry or improving upon one that already exists. The goal is to offer something that will raise demand in the market and allow your business to take market share away from competitors. Be ready to look beyond what your business currently offers; you may be able to break into the industry by creating a product that improves upon one that the competition offers.

Simplify the buying process

Simplifying the buying process can attract and retain customers because it reduces time wastage. As a smart strategy, you are better off seeking additional payment methods like an e-commerce website or the use of a mobile app. Both approaches will ease your customer’s shopping experience and ultimately increase your revenue.

Focus on customer feedback

Focus on staying consistent when it comes to listening to your customers, instead of investing a lot in analytic consultations and tools. Pay attention to what your customers complain the most about and have a social media management team to track the brand mentions on social media platforms. People appreciate when they can reach and talk to your company directly and they don’t hesitate to be direct regarding all the shortcomings of your business or product. Your reputation plays a vital role in your business growth. The more effort you make to ensure customer satisfaction, the more chances you will have of gaining favorable reputation. That is why you need to listen to what your customers have to say about your work and use the feedback to fix certain issues and improve your product.

[READ MORE: This simple advice could help solve your investment challenges)

The key to competition is product differentiation

Act a ‘purple cow’. Define your strengths and what makes you different and leverage them to gain a competitive edge. Whether you’re reinventing industry standards, creating a new business model or improving a process, differentiating yourself is one of the most effective ways to thrive. To figure out what opportunities you have to brand yourself in a way that sets you apart, answer the following questions:

  • Are there any needs or desires of my target market that are not currently being marketed by any of my competitors that I could market?
  • Are there any subgroups within this target market that could be focused on?
  • What marketing or branding opportunities are none of my competitors taking advantage of?
  • What marketing tactics or branding efforts are overdone?
  • Are there any promotional, branding, or experiential tactics used in other industries that are not being used in mine?

Stay on top of trends

No matter how saturated the market, consumer demand is never stagnant and keeping your finger on the pulse of the industry keeps you relevant and poised for success. Smart businesses act on these trends and update their inventories accordingly. Always keep an eye open for market changes and opportunities that may allow you to outperform your competitors. Customers appreciate businesses that anticipate their needs and provide them with surprising products or services that they weren’t even aware they needed.

Hotflex

Lower your prices

In order to gain a competitive edge, it is of absolute importance to lower your prices. If your products are clearly superior, it is okay if they cost more. However, you need a new plan if you offer the same product as your competitors. On the other hand, your prices cannot drop forever, because at one point you will start losing money.

Add value

Offering incentives and value-added services is another smart strategy to consider when preparing to enter an oversaturated market. Are you offering frequent buyer programs, reward levels, or dedicated personnel? Not only does adding value attract a larger audience, but it also strengthens customer retention, which leads to long-term growth. Customers want to ensure that they are getting their money’s worth, so they’re always on the lookout for the best and most cost-effective solutions. If they perceive more value in your goods than your competitors’, they are likely to pay more for your services/products. By offering small perks to loyal customers, for example, you encourage future purchases, generating growth.

Essential soft skills that will help you succeed in your business

Focus on having a sales culture

Are you by the book or does your company have a signature style when it comes to sales? How do you treat your customers differently from the way your competitors treat them? Establishing your own culture ensures your company will stand out.

[READ ALSO: Simple tips to help you choose a side business in 2020)

Conclusion

Penetrating an oversaturated market poses its own unique set of challenges and rewards. With each passing day, new businesses emerge, making the marketplace more crowded than it already was. As such, staying competitive and relevant may seem borderline impossible. But, where most people see a roadblock, savvy entrepreneurs see an opportunity. Highlight what makes you different, always look for new customer needs and demands and ensure that your products deliver high value, and you will gain a competitive advantage.

 

Jaiz bank

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    Interview

    What Enterprises must do to build a resilient brand in Nigeria

    SMEs and businesses that want to survive must think beyond growth to remain in business and the only way to that is to build a resilient business.

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    Olatunde Olajide is an Associate Partner at Verraki Africa, a tech firm that provides business solutions to drive inclusive high-quality growth for the nation’s Small and Medium Enterprises, big firms, and governments.

    In this interview with Nairametrics, Olajide urges SMEs and other enterprises to improve their technology resilience and build resilient organisations. Excerpts:

    What is the biggest technology gap you have seen in the response of businesses to the pandemic?

    I will like to answer this question from the perspective of how some industries have reacted. I think it was clear that several industries were more ahead of the curve than others in terms of digital readiness. For example, we know that the banking sector already put in play digital offerings on digital channels, ahead of the pandemic, and so it was easy for them to easily upgrade some of the services and just maintain that during the pandemic.

    We also know that the telecommunications industry was also digitally ahead, with digital channels and offerings.

    What sectors were taken unawares?

    Unfortunately, it wasn’t the same experience for other industries, e.g education. There was a World Bank survey last year that tried to understand the impact of the pandemic on education, and the results revealed that only one-third of the sample survey of primary and secondary school students were able to engage in any form of virtual education during the lockdown.

    The ability to participate in a virtual class was dependent on several factors. First, is the hurdle of cost, which may be less of an issue for pupils in private schools, but a significant challenge for the bulk of students who are in public schools. During the lockdown, the government eventually came up with several initiatives, e.g., for students to listen to the radio and television. But at the beginning, it was not too easy and it took some weeks of catching up for that sector to even make any headway regarding their readiness.

    The health sector also experienced some delays. During the lockdown, it was almost impossible to have consultations done, till after they were able to use the channels that we typically use for communication to start consultations.

    Can these gaps be bridged?

    These gaps are still very much with us but to a large extent, we can say that they are gradually being bridged.

    Hotflex

    What other technological challenges have your observed?

    Security is a clear area of challenge. Working from home entails that employees sign in and work from different locations with the resultant challenges of unsecured Wi-Fi and likely security breaches.

    How would you describe the last decade in terms of the Tech space?

    Over the last decade, the world has seen several disasters. We saw the tsunami that happened in Japan about 10 years ago and the level of destruction on live television. We also saw how Ebola ravaged Africa between 2014 and 2016 and disrupted education at the time, for about three months. We also had Occupy Nigeria in 2012, the #EndSars protests in 2020, and the biggest pandemic we have experienced, COVID-19.

    So, we have had a decade of disruptions, disasters, and unplanned incidents and I think it is obvious that the world will continue to see these disruptions in several ways. No one thought of COVID-19 and the incredible extent to which it would disrupt life as we knew it.

    One of the focus of your firm is resilience. Why is the message of resilience pertinent at this point?

    SMEs and businesses that want to survive must think beyond growth to remain in business, and the only way to that is to build a resilient business. Let me quickly illustrate with the analogy of a camel. A camel is an animal typically found in the desert, but it has evolved as an animal that survives in extremely hot and cold weather, interestingly. And that’s how businesses need to be built and modelled for the long run.

    Are you saying enterprises should not aim at becoming unicorns in a short time?

    While it is good to grow very quickly, and become a unicorn in a short time, it is increasingly more important – given the trends we are seeing – to build a resilient business.

    More organizations must think, “How am I going to survive whatever is going to come next? What is coming after COVID-19 and how do I survive it? How would I maintain my business? How do I diversify my focus and make sure that my products are accessible across different geographies?

    How do I build a diversified strong team where I can attract and get the best talents regardless of wherever they are, to do the work we need them to do? How do I embed the message of resilience into the business model?”

    Jaiz bank

    These are questions every business and entrepreneur must begin to ask and answer. That’s why this message is very important; organizations need to start thinking along these lines to embed resilience into every fabric of the organization to be able to survive existential threats.

    So, going further, resilience then means sustainability, safety, adaptation, flexibility, and long-term thinking. Several enterprises and governments are beginning to prepare resiliently, e.g., the Lagos State Government has a Resilience Office.

    How is technology resilience different from disaster recovery?

    Disaster recovery is essentially what it is. There is a disaster, so how do I recover from it? Resilience is different in the sense that you think through the systems to withstand the disaster and continue your business and operations without shutting down.

    Resilience is the ability of the systems you have put in place to withstand operational stress, cyber attacks, and any kind of change that may come in. As Niyi Yusuf mentioned recently, the level of technology resilience of an organization is more or less equivalent to the resilience of the business. And this more so in this period where businesses are pivoting to digital.

    The unrelenting nature of cyber attacks is also important. Statistics show that every day, hackers are devising new ways to infiltrate security systems. Cyber attacks come in different shapes, forms, sizes, etc.

    As you are investing in technology to improve the security of your environment, hackers are also investing in developing different ways to penetrate the security of your enterprise.

    Business leaders must think of building technology infrastructure that is resilient, flexible, easily adaptable, and can enable the business to make changes as quickly as possible.

    Another reason is because of digitalization. When the 2008 financial crisis came, there were significant regulatory changes and now we have seen regulatory changes as well with the likes of fintech and all that. With increasing digitization, a lot of organizations are leveraging fintech, fintech products, building their digital products, and all that.

    app

    Customers’ expectations are also dynamic. Today, most people have smartphones and can do transactions with them. Organizations should be able to provide services regardless of the device their customers use.

    What should MSMEs/ corporates/ do to build technology resilience?

    To build technology resilience, the first thing is to evolve your business model to become flexible and resilient. I think SMEs have that advantage of learning over businesses that may be struggling to adapt.

    But they are several angles from which we can look at this. First thing is that resilience begins with the people, so you need to make sure you get the right people and build the right capability in the team to be able to manage the resilient infrastructure that you are going to put in place.

    When we talk about capability, we are talking about skills, know-how, incremental hiring, contracting, etc. Every organization also deals with vendors and these vendors contribute to your delivery of services, both internally and externally.

    So, corporate and SMEs should focus on vendor management. Also, it is important to think about the culture of resilience and making resilience a part of the DNA by integrating it into the people in the organizations, the systems, the processes, the goals, objectives; essentially working resilience into everything about the business.

    Organizations should also improve their processes. At the beginning of the pandemic, some organisations had digital solutions. Unfortunately, the solutions were designed in such a way that, you couldn’t use them outside the office.

    They had to re-architect the solutions to enable their workers to use the infrastructure outside the office, which took some time. Corporates and MSMEs need to have flexibility in mind when designing their processes to be able to ensure that these changes do not impact their businesses.

    How does Verraki support its clients on their digital resilience journey?

    As advisors, we have to be ahead of the curve in terms of technology capabilities. At the beginning of the pandemic, two of our clients approached us to help them on their digital resilience journey. One was upgrading a digital product and needed help on quality assurance to ensure that the project was delivered. We also had another client that realized the need to digitize during the pandemic and started that process.

    We supported the client with conducting quality assurance by conducting reviews of their DevOps application development and delivery processes on Azure Cloud, as well as Azure Stack infrastructure setup, and provided recommendations on the whole end-to-end Azure application development process.

    We also provide thought leadership and practical experience/scenarios that resonate with our clients. Because of these, they see us as a trusted partner for solutions designed to improve business and digital resilience.

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    MSME

    FG to support MSME contribution to economy to boost development – Minister

    The Minister said that the FG has schemes aimed at improving the post-pandemic climate for SMEs in Nigeria.

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    FG releases new details on MSMEs support scheme, budgets N200 billion for loans, FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

    The Federal Government declared that it is working with stakeholders to improve MSME participation in the economy through improving the business climate which will create jobs.

    This was disclosed by Amb. Mariam Katagum, Minister of State for Industry, Trade and Investment, at the 7th EMPRETEC Global Summit,  on Tuesday, themed “The Role of Entrepreneurship, MSME and EMPRETEC in post-COVID-19 Resurgence.”

    The Minister stated that the MSME sector of the economy is the growth engine of any economy which contributes to its development, job creation and export, amongst others.

    “An MSMEs survey indicates that Nigeria’s SMEs contribute nearly 50 percent of the country’s GDP and account for over 80 percent of employment. No doubt, the sector is pivotal to Nigeria’s growth, including reducing poverty and unemployment levels.

    It has, therefore, become more apparent that supporting entrepreneurs and small businesses by creating opportunities for MSMEs to thrive is essential for increasing productivity, creating jobs, and boosting our economy.

    This is why the Government is working with stakeholders across all sectors, to create the enabling environment for entrepreneurs and MSMEs to ensure that they grow now and into the future,” she stated.

    On economic sustainability

    The Minister said that the FG has schemes aimed at improving the post-pandemic climate for SMEs in Nigeria. She also disclosed that the FG launched the National Policy on Micro, Small and Medium Enterprises (MSMEs), a framework for the resolution of the challenges faced by the sector.

    The programmes launched by the FG includes the Survival Fund and Guaranteed Off-take Schemes, operated by a Steering Committee in the Ministry of Industry, Trade and Investment.

    Hotflex

    “The Government of Nigeria had, prior to the outbreak of COVID-19, initiated the MSMEs Clinics scheme as a strategy, aimed at providing support for the MSMEs in the country.

    At the clinics, operators in the MSMEs space are engaged by regulators and business advisory experts, on issues ranging from entrepreneurship, skill development, finance, quality & standards, and on how to facilitate and grow their businesses and enterprises,” she added.

    What you should know 

    Nigeria’s unemployment rate as of the end of 2020 rose to 33.3% from 27.1% recorded as of Q2 2020, indicating that about 23,187,389 (23.2 million) Nigerians remain unemployed.

    A combination of both the unemployment and underemployment rate for the reference period gave a figure of 56.1%. This means that 33.3% of the labour force in Nigeria or 23,187,389 persons either did nothing or worked for less than 20 hours a week, making them unemployed by our definition in Nigeria.

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