In other words: How to prevent the competition from telling everyone about your weakness.
The Verizon map ads seem to appear on TV every 10 minutes. Their unrelenting message caused AT&T to fight back with Luke Wilson ads that just don’t work. Why? Because Verizon found the glaring weakness of their competitor and cleverly got the word out to potential customers while the AT&T ads are just attacks on a competitor. Sour grapes does not gain market share.
What is AT&T going to do about this?
AT&T Will Spend $2 Billion To Improve Wireless Network http://bit.ly/d8db63
Now they are making upgrades they should’ve done before. Instead of gaining momentum with upgrades it appears they got caught with their pants down and appear to be reacting to the competitor’s ads. Meaning, instead of gaining customers for the upgrades they appear to be simply trying to keep the customers they have. That is a dramatically different return for a $2 billion investment.
How could they have prevented this from happening?
1. Be honest with yourself about shortfalls
When I work with organizations on strategic planning we often discuss the problems they have in-house and problems the competitors have. Which list do you imagine is longer? Many executives are blind to their own in-house problems and seem more focused on justifying why their situation is like it is.
You must take the objective look at where your competitors are beating you. If you can’t see it, get someone to help you. Because, if you are myopic enough to miss your weak spots, don’t worry your competitor will show them to you and all the customers you have or had.
Identify the critical areas you must improve quickly to be more competitive. Remember, sometimes you have to ask someone outside of the family whether your baby is ugly or not.
2. Know when the game has changed
People with knowledge have a great understanding of how to be successful in the way things used to be. Still advertising in the phone book? Still think social media is for fun and games? Still think if you build it they will come?
How do you know when the game has changed? When the traffic patterns in front of your location (that you rely on for business) reduces to a mere shadow of what it once was, you need to recognize you are in a new game. Once upon a time people wanted a bank branch on every corner, now they want those services on their phone.
AT&T fell asleep on the importance of 3G upgrades and it gave the advantage to their competition. How has your game changed? New technology? New competitors? Your energy isn’t what it used to be and the job is more demanding now than it ever has been? These are all import things to evaluate because the game changes daily, and last time I checked it isn’t getting any easier.
Once you can grab an understanding of how the game is played today, you have half the battle over. The next step is what you are going to do about it.
3. Proactive is under your control, reactive is under their control
I used to have a picture on my wall of a stampede with the caption: “If you don’t make dust, you eat dust.” The ones in the front only make dust, the rest are eating dust. Making proactive change and getting in front of the curve is where success happens. Once upon a time in the 90’s the economy was so good everyone did well regardless where you were in the herd. Not today.
Today only those who are proactive in making changes, anticipate customer needs, and take the risk to be in front are the only ones making the success we all used to see. Laying back and following the lead of others means by the time you “arrive” the customers have already moved on. That is how fast business is traveling. Are you being proactive or are you like AT&T having to spend too much money to simply keep what you have?
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