FULL ARTICLE HERE: Make it difficult for your competitors to succeed: Create tough barriers to entry.
Make it difficult for your competitors to succeed: Create tough barriers to entry
Written by Chipo Mapungwana
Making your market impenetrable is one of the best defences against competition. When you don’t want your competitors to succeed, a key strategy is to make is impossible for them to enter and succeed in the market that you are trading in.
So what can you do, to discourage competitors from entering your markets?
1. Reduce your costs of production.
Black and Decker has mastered the science of leveraging on its economies of scale accruing from its use of research and development, technology and its strategic manufacturing and production systems. Each of Black and Decker’s factories around the world produces one product for the global market. The production costs thus become unbeatable and as Black and Decker is not keen to increase its prices, there is not much room for copy cats to manoeuvre.
2. Master technology and quality.
This is the strategy being used by companies like Procter and Gamble as well as Gillette , L’Oreal cosmetics and 3M. These companies are top of their game in utilising technology for competitive advantage. They constantly innovate and have therefore remained the benchmark and reference point in their markets in terms of quality. Technology , in the long run reduces your operating costs and enhances the quality of your products…..
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