4 Essential Factors to Assess a Company’s Ability to Become a Supercompetitor
Organizations use a variety of strategies to achieve Competitive Advantage and surpass their competitors. Leading multinationals with a broad range of product or service offerings have historically utilized positions, assets, and economies of scale as sources of Competitive Advantage.
Leading business players, today, use a very different approach to gaining Competitive Advantage. Today’s market leaders are using critical competences to compete with their rivals. Instead of depending on short-term growth opportunities, they put more of an emphasis on creating distinctive, long-lasting capabilities. Their approach is creating a single, powerful value proposition based on a select few core capabilities. They are practically transforming their entire enterprises during the course.
These market leaders are categorized as “Supercompetitors” because of their distinctive skills, power, and capacity to change the nature of their sector. Supercompetitors leverage the ideal combination of processes, systems, insights, and resource configuration across various units to develop distinctive competencies to generate results relevant to the business. To stay ahead of the curve, some Supercompetitors use Mergers or Acquisitions.
Supercompetitors are aware that the success of such transactions hinges on a capabilities fit — their goods or services should enhance the acquired company’s offerings. They sell off companies where their skills don’t mesh well or where the new partner wouldn’t benefit from their skills.
There are three main categories of Supercompetitors:
- Innovator — frequently releasing new offerings.
- Value Player — offering low-cost products.
- Aggregator — selling products developed by others.
Supercompetitors have the potential to alter market dynamics. Other businesses must restructure their portfolios, conduct a thorough analysis of the market, and concentrate on the value propositions in which they excel if they are to compete with Supercompetitors. A thorough assessment of a company’s ability to become a Supercompetitor in an industry should be based on these four essential factors:
- Analysis of the industry and its change potential
- Analysis of upcoming Supercompetitors and their core competencies
- Assessing the Future State
- Devising a Strategic Plan
The assessment gives the organizations the ability to understand where they and their rivals stand in the race to become Supercompetitors in the future.
Let’s delve more deeply into the Supercompetitors evaluation’s crucial components.
The first step in evaluating a company to become a Supercompetitor is to do a thorough analysis of the industry. To assess their sector and determine whether their company has the potential to become a Supercompetitor, leadership needs to find answers to several critical answers. For example:
• Are your leaders the same as they were ten years ago? Are newcomers assuming leadership roles within the company?
• Are rivals gravitating toward distinctive value propositions, and only a select few are succeeding in each one?
• Are leading companies using the same strategies to compete as the pioneers of the past?
• Are business conglomerates splitting up into multiple businesses?
• Rather than assets or product portfolios, are capabilities the driving force behind the success of the top companies in a certain sector?
• Do industry pioneers have scalable capabilities? Is scaling without rising costs possible?
• Are existing capabilities creating product or service differentiation?
Evaluating the competition’s strength is the next step in the assessment process to determine which businesses have the potential to become Supercompetitors. Leaders need to be able to identify potential Supercompetitors in their respective businesses and learn more about their critical skills, talents, and structural qualities that give them the advantage to take the top spot. For a thorough analysis, at least 3 to 5 Supercompetitors from the relevant industry should be chosen.
Interested in learning more about the other critical elements of the Supercompetitors potential evaluation? You can download an editable PowerPoint presentation on Supercompetitors here on the Flevy documents marketplace.
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