Markets in which there are too many competitors, companies have to differentiate themselves in order to be able to survive in such an industry. There can be two general ways this can be done; either through product differentiation, which is where you offer a new product or a new version of a product, which does not currently exist, or by price differentiation. The latter is when a company is competing on price by making it slightly more affordable for customers. Jack Rochel, the CEO and president of Epsilon Electronics Inc. also knows of another strategy in which companies can create a whole new playing field free of competitors.
Competing in the tech industry like Jack is could be tough to stay relevant. This method is known as the blue ocean strategy. Authors Renée Mauborgne and W. Chan Kim have called it that which is also the name of their book. Instead of competing in the red ocean where it is tough for companies to stay afloat with all the competition out there, it is best to create somewhat of a sub-industry. For example, Cirque du Soleil is a circus but they came up with the idea to steer away from the traditional shows their competitors offer. Circuses were a thing of the past anyway but Cirque du Soleil found a way to make it modern and interesting again.
But before companies come up with a strategic plan, they have to first come up with a compelling value proposition. This has to be in a form of a short pitch explaining the benefits your product or service is offering the buyer and has to show why it is superior to competitors’ products. It is a vital component in how to shape your strategy. The focus of your value proposition should be on what customers want but presented in a way as though you are explaining why you do what you do. Jack Rochel has always focused on what Simon Sinek explained in his video “Start with Why”. This way of thinking can give you a significant edge in your promotional material by giving customers a good reason to purchase your product. If companies focus too much marketing messages explaining what they do, it will only get them so far.
While it is important to work on a company’s value proposition, Jack Rochel also knows the importance of marketing yourself and coming up with your own value proposition. If you don’t know why you should be hired for a job, then why should people hire you. Working on a strategy in order to increase your chances of getting hired will make all the difference.
Either for companies or individuals, anyone should be working on value propositions stating the benefits of their services. It should state the specific benefits offered to the user.