Listening to John Oliver’s take on Net Neutrality, he brought up how Comcast and Time Warner compete with each other – Comcast does not offer their services in a same state if Time Warner is already established in that state and vice-versa.
While this ‘arrangement’ is good for these companies, it isn’t good for the public. Creating a monopoly comes with a high price for the public. The biggest cost is no choice, which means you will pay top dollar for that service. In addition, monopoly controls the messages you receive and gives power to other companies that you may or may not want to support.
Living in Quebec is no better, all we have is Bell and Videotron.
As a small business, how does this information help you to reduce the competition’s position with your target market?
Competing as The Small Company
Target a certain location: Just like Comcast and Time Warner, target a certain state/province or city and own it. Get the local media to notice you, build a community and know your target market intimately.
Go where the competition is not there: It may take more work to enter a new market but if the competition is not serving it, take the time to review it carefully because this may prove to be a great opportunity for your business. Remember, if you are unsure about how to move forward, call us!
Implement pricing strategy: There are certain pricing strategies you can implement to get ‘in the market fast’. Of course, like everything else, you need to do your analysis first before implementing this type of strategy.
Collaborate for collective impact: A growing trend is to putting aside self-interests and collaborate with competitors and other leaders in your industry to build new products and advance shared objectives. A perfect example of this collaboration is with the top 12 Public Relations Firms in Canada; they got together and created a council to promote the business of public relations and at the same time it helps to advance their share objectives, to keep and win clients.
What Not To Do
Create a pricing agreement with competition: While Comcast and Time Warner’s market entry planning looks more like a pre-agreement than strategy, I suspect they didn’t call each other to agree on pricing. Price fixing is against the law.
Promote your company as the only guy in town: Just like Comcast and Time Warner, they never promote, “Hey, we’re the only cable company in Boston!”. Instead they advertise, “Switch to us!”
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