Going Up Against the Big Guys Why Bigger isn’t Always Better A presentation to the CCIM-IREM Success Series 2009 October 17., 2009 Honolulu, Hawai’i Dr.

Going Up Against the Big GuysWhy Bigger isn’t Always Better

A presentation to the CCIM-IREM Success Series 2009October 17., 2009 Honolulu, Hawai’i

Dr. Lowell “Duke” Kuehn

9812 Island View Lane, University Place, WA 98466 360.791.8450 [email protected] www.pnwconsult.com

This material is copyrighted (2009) to Pacific Northwest Consulting Services, Inc, and Dr. Lowell “Duke” Kuehn.

You are free to copy and distribute it as long as

• you correctly attribute its source• don’t make any money off of it.

I want folks to learn about and use these powerful tools, so give this presentation to anyone you think might find it helpful,

For copies of similar presentations check out my website or blog:

www.pnwconsult.com www.dukeonline.blogspot.com

Duke

October 17, 2009

Many metaphors:

David and GoliathJack and the Giant1969 Super Bowl: Namath Jets beat

Colts1980 Olympics: US Hockey beats

Soviets.

Best may be one whose 65th anniversary we celebrate next week:

The Battle for Leyte Gulf, Samar Island

October 25, 1944

Basic strategies for beating big competitors.

1. know and solidify your market position2. know and slice off edge of their market position3. pick your fights4. exploit your advantages, their disadvantages5. supplement your size6. adopt better tools, faster7. provide superior, customized service

This presentation builds upon two powerful concepts you need to understand absolutely and put into execution perfectly.

Market Position Competitive Advantage

Think of these as David’s slingshot and the rock.

Market PositionImagine the market you operate in as a three dimensional space and the business you conduct and the clients your serve define that space.

Each side of the cube describes some feature of your business.

For example:

• class B office buildings• located on the south end of town• several medical facilities

All Types of SpaceYou = Class B office buildings

ALL TY

PES BUSIN

ESS

Yo

u = medica

l

You occupy a specific space in the cube… that’s your POSITION or NICHE.

ALL

LOCATIONS

YOU=

South

End

All Types of Space

ALL TY

PES BUSIN

ESS

BMedicalS. End

ALL

LOCATIONS

Take a second,think about your niche.

Defined?Known?Unassailable?

Better to think of your position as a FORTRESS.

In your market your competitors occupy their own positions and you need to face all of them, big or small.

They will and do compete for position and they WILL try to squeeze you out.

Competitive Advantage (or disadvantage).

BMedicalS. End

The market position you occupy possesses certain advantages by virtue of:

DEFENSIVE SAFETYPOTENTIAL for GROWTH

To compete, you need to know this for yourself as well as any competitors near your position.

When you master and apply these the conceptsof market position and competitive advantage you are ready to take on ANYBODY, not just the big boys.

You can conduct a competitive analysis and figure out where and when to compete (or not).

Firm Defensive Strength

Growth Potential

Weakness

US Inc. South End South End Medical

Big Guy 1 Whole City Wherever they want

Electronics

Big Guy 2 North End Government Medical

Medium Guy Westside Medical Class B

Small Guy South End Medical Manufacturing

So

Rule # 1: Know and solidify your market position.

Rule # 2: Know competitor’s market position and slice off the sides that are vulnerable.

Rule # 3: Pick your fights.

Rule # 4: Exploit your advantages, their disadvantages.

Rule # 5: Supplement your size.

Rule # 6: Adopt better tools, faster.

Rule # 7: Provide superior, customized service.

GOOD LUCK!

For a copy of this presentation, send ane-mail to Duke Kuehn,

[email protected]

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Notes from Duke's CasebookVolume 5, Issue 1 The Cynical and Resistant Edition May 2008

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