Every business aims to be a sales leader. Each business wants to increase its sales and be the leader in whatever domain it operates in, hence being the market leader and becoming a force. Businesses do innovate as they grow and many dynamics change for them, but a cash rich business is always the one which stands firm across dynamics and times and strong and stable sales are one of the strongest reason for a sound, growth oriented business.
How should the SMEs work towards a sales leadership?
SMEs are small and emerging businesses and hence cannot compete with market leaders due to their sheer scale and size and the execution capability they possess. Also, its not operationally possible for SMEs to aim for a market wide sales leadership across its bigger competitors even by creating a great price differential, which anyway is a negative start for the emerging businesses.
What the SMEs should aim at doing is to create and establish a Category Leadership. If an emerging business does not have a market leadership, it must try finding a category which it is strong in and in which it can create a strong differential as compared to the competitors in the market. Each vertical can further be sub-categorized and an SME can always innovate and aim to create a leadership position in that particular sub category.
Defining competition
If you are an SME which develops software and if you aim to be a market leader in software, then you might as well consider Microsoft as a potential competitor OR you can do a little more homework in terms of understanding your core strengths and your customers and hence position and categorize your offering to say you are one of the strongest software creators for the BFSI sector. This reduces your effective competitive landscape to only those companies which are doing software for the BFSI sector and also helps the market take note of you and the value that you deliver.
Market size in a niche is always smaller
It is actually not true. If you are able to create a powerful recall and standing with customers in a particular niche, the word of mouth is powerful enough in that circle to ensure that your business automatically gets noticed, which further impacts your sales in the positive. In the age of the internet the market size is always growing as defined by the Long Tail which proves that there is consumption at the farthest ends of the un-explored markets which the SMEs generally don't take note of as they don't have the outreach mediums and the bigger businesses leave them as they might not be the best target audience for them.
Disruptive Innovation
What is really required of the SMEs to be leaders in a particular niche, in which the larger players can always enter, is to play on their strengths and create disruptive innovations which actually help the customers solve business challenges. SMEs have the flexibility of experimenting with various business models and come up with newer offerings quickly while being close to their customers. This is one advantage they can always leverage which can enable them to be swift in action and hence be faster than established companies to move up the value chain.
Team IndiaMART Knowledge Services is committed to enable SMEs with tools, tips and techniques to help them reach up the value chain and hence achieve the next level of growth. For more information on how you can create new opportunities for your business, drop in a comment to this post and we will get in touch with you!
How should the SMEs work towards a sales leadership?
SMEs are small and emerging businesses and hence cannot compete with market leaders due to their sheer scale and size and the execution capability they possess. Also, its not operationally possible for SMEs to aim for a market wide sales leadership across its bigger competitors even by creating a great price differential, which anyway is a negative start for the emerging businesses.
What the SMEs should aim at doing is to create and establish a Category Leadership. If an emerging business does not have a market leadership, it must try finding a category which it is strong in and in which it can create a strong differential as compared to the competitors in the market. Each vertical can further be sub-categorized and an SME can always innovate and aim to create a leadership position in that particular sub category.
Defining competition
If you are an SME which develops software and if you aim to be a market leader in software, then you might as well consider Microsoft as a potential competitor OR you can do a little more homework in terms of understanding your core strengths and your customers and hence position and categorize your offering to say you are one of the strongest software creators for the BFSI sector. This reduces your effective competitive landscape to only those companies which are doing software for the BFSI sector and also helps the market take note of you and the value that you deliver.
Market size in a niche is always smaller
It is actually not true. If you are able to create a powerful recall and standing with customers in a particular niche, the word of mouth is powerful enough in that circle to ensure that your business automatically gets noticed, which further impacts your sales in the positive. In the age of the internet the market size is always growing as defined by the Long Tail which proves that there is consumption at the farthest ends of the un-explored markets which the SMEs generally don't take note of as they don't have the outreach mediums and the bigger businesses leave them as they might not be the best target audience for them.
Disruptive Innovation
What is really required of the SMEs to be leaders in a particular niche, in which the larger players can always enter, is to play on their strengths and create disruptive innovations which actually help the customers solve business challenges. SMEs have the flexibility of experimenting with various business models and come up with newer offerings quickly while being close to their customers. This is one advantage they can always leverage which can enable them to be swift in action and hence be faster than established companies to move up the value chain.
Team IndiaMART Knowledge Services is committed to enable SMEs with tools, tips and techniques to help them reach up the value chain and hence achieve the next level of growth. For more information on how you can create new opportunities for your business, drop in a comment to this post and we will get in touch with you!
This is a focused write up
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