This week we talk about the key concept you need to know to understand business strategy. Check it out!
VIDEO SUMMARY
There is one main idea, that comes up over and over when you study business strategy. That idea is “Celebrate Your Unique Qualities.” Now you might be saying, “That is it? What is the big deal?” I encourage you not to take this concept for granted. Your ability to think in this mindset, is one of the biggest differences between successful business people… and everyone else.
I want to talk through a simple example to show you what I mean. Imagine you are operating a business in a certain market, and you have three other main competitors. All four companies sell a very similar type of product. You see this scenario play out in the business world all the time. What happens is intense price competition. If any one company tries to raise their price, the buyers in the market will just go buy from the other three companies, because the products are virtually the same. So all four companies are stuck at the market price. Now imagine your company develops a unique feature on your product. You are now able to raise your price, because you are adding new value to the market, and people are willing to pay more. The other three companies are still stuck at the lower price, because there is nothing that differentiates them in the market. What this example shows is that your unique qualities, if they are adding value, directly relates to how much money you can make.
This idea of “Celebrate Your Unique Qualities” is one of the central ideas of business strategy. This actually involves a lot. You need to answer these questions:
- What makes your business unique?
- How does that add value to your customer?
- How does that compare with your competitors?
The reason you have to study the concept of “Celebrating your Unique Qualities” is because it is not the normal way people think. In fact, society does the opposite of this. In society, you have tremendous pressure to conform and be the status quo. If you remember back to when you were in high school. There was tremendous pressure to fit in. If you wanted to be accepted, you had to dress a certain way, look a certain way, and act a certain way. If you are different somehow, you feel like an outcast. Your unique qualities become a source of shame, or something you try to hide. Eventually we all leave high school, and we still do the same thing. We bring all those lessons with us. You want to live in a certain type of house, and have a certain type of job, and wear a certain type of clothes. This is one of the great tragedies. Those things that make you different is not something to be ashamed of. It is what makes you great. It makes you special. All that time we spent in high school trying to fit in, we should have spent celebrating the very things that made us stand out.
My point is that your success in business requires you to break out of the mindset of conformity. That is what business strategy is helping you do. It helps you answer these critical questions:
- What are your unique qualities?
- What is it that makes you special?
- What is it that makes you stand out from everybody else?
When you can identify this and celebrate it in your business that is going to translate into success. Because your competitors are going to be stuck trying to sell the same product as everybody else. When you start studying business strategy, you will start seeing this play out in the market. It is the companies who take advantage of what makes them unique, that translates into more money.
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Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.