With the emergence of technologies, market disruptions and
quick turnaround times, it is becoming challenging to sustain long term
competitiveness. Operators are exploring fresh competitive advantages with
shorter lifespans at the consumer end. However, the resilience is created by
building up internal strengths and adaptability. With innovative and more
integrated supply chain, companies’ jump quickly from one competitive position
to another creating new one and depreciating the old ones at the same time
matching rivals.
For telecommunication industry
most customers are unable to identify specific features that they are willing
to pay for and most product features are not easy to gripe the benefit of
pricing in a highly competitive markets. In a highly tempestuous and highly
competitive industry such as telecom, the overall usefulness of a strategy can
be reapt by following a step by step approach:
Step 1: Build a
position map
The challenge operators are
facing is that they need to think beyond typical business lines to expand, yet
make sure that the revenue is protecting to a large degree in conventional
voice services. In order to protect the revenue market share operator must
specify the boundaries of the market in which they operate. With the changing
technologies tracking the entire market or a specific customer need segment is
a key question to answer. Changing the frame of analysis with respect to the
customers, products, pricing versus the benefits provides the basis for
plotting the competitive benefits vis-รก-vis the desired position map especially
now when the price war is nearly over. This step helps penetrating the fog that
shroud the competitive landscape and help the company locate their unique
competitive space beyond the typical voice share.
Step 2: Translating
intangible – convert Customer Experience into Value
When interpreted within the
context of customer the position map can very well be translated into the
customer value. While the entire product may not be translated into the
customer’s preference, focusing on the intangible benefits retaining the large
chunk of customers by focusing on offering the intangible benefits. Once they
have identified what benefits appeal to customers, operators can use the information
to decide which features to develop, at what cost, and how soon they must
create the next differentiator. In current telecom scenario how customer
experience is mapped across the journey with the operator is more valuable as
compared to the overall satisfaction the customer with the service. When mapped
correctly customer experience can provide a great insight about what products
will reap the most value and for which features customers will be willing to
pay.
Step 3: Product
mapping across customer segments
As the revenue streams for telecom operator are shifting
from gradually from voice and text messaging and basic VAS to data services.
Operator’s readiness to address the quick changes in the customer demand
becomes imperative to secure the target market. In the wake of the changes in
the market demands the primary offering of the operator become the platform for
offering new products and verticals addressing a particular customer segment.
Step 4: Deliver Value
across all channels
As the price lines are becoming steeper the need for unified
experience across all distribution channels is required to maintain the
competitive advantage. Customer is now more in position to demand the identical
and seamless experience shift while they move from one channel another. From
physical channels / distribution points to the social media and web based and
now the emerging curve of apps telecom service provider now need to have more
insight about customers’ experience across all channels to create value across
the entire supply chain. Similarly the emergence of two-sided business model is
making it even more critical to have the similar value created for all business
stakeholders.
Step 5: Identify the
clean field to sweep the rivals
After securing the primary platform for major customer
segment operators’ clear strategy to seize the new fields ensures the early
territory margins. A successful competitive positioning helps in identifying
those untapped areas in the field where competitors. Also operators’ need more
industry insight to preempt the competitors actions more easily and place their
competitive products to capture the larger untapped territory when the field is
still new.
Step 6: Hold the mind
share
Customer insight and industry analytics at the same time
play crucial role to not only maintain the market share but creating a larger
mind share by addressing the market needs quicker than their competitors.
Business intelligence on one hand plays a very important role in securing the
existing territory while exploring the new opportunities. In doing so, however,
a critical analysis of customers’ expectations, behaviors, profile and intended
usage coupled with the mapping of their existing experience help maintaining
the position at the same time preparing the ground for the new position in
future.
All in all, rather than leaving the market positioning to
chance, it is imperative to establish a strong strategy and build the execution
plan around the position that the company wants to hold.
While companies are focused on making a competitive strategy
it is far more important to execute it effectively too. Reinforcing the
strategy and aligning all business processes with the strategy is the key
factor especially at higher organizational levels. At all levels, incentives
must support short-term objectives that are related logically to longer-term
strategic ends – creating the right balance between overall company
performance, functional performance and individuals performance and behavioral
assessment.
The popularity of programs such as the Balanced Scorecard
and other management-by-objectives approaches to goal setting also suggests
that efforts are being made to ensure that short-term measures of performance
are consistent with desired strategic outcomes. This means not only individual
or a functional performance, but also rewards cooperation among the individuals
or teams involved.