Sunday, November 05, 2006

What is the best?

"Managers who think there is one best company and one best set of processes set themselves up for destructive competition. "The worst error is to compete with your competition on the same things," Porter said. "That only leads to escalation, which leads to lower prices or higher costs unless the competitor is inept." Companies should strive to be unique, he added. Managers should be asking, "How can you deliver a unique value to meet an important set of needs for an important set of customers?"

That is partially true.
You do not necessarily need to be the best to be successful, but you certainly need to be the "best advertised".
There are two main kinds of products:

1) The Mass market product.

2) The niche market product.

It depends on the size of your company, on the power of communication on the budget for sponsoring it.
In the first case the revenues come from the number, in the second on the added value.
In the first case you have to compete with many, in the second, just few and if you are luckily good or the best in that field, with nobody.

It is true that there is just one Ferrari, but it is also true that there are only 365 days in a year and if you earn $1000 a month you will choose a Chinese car.
This is right thinking and right thinking IS right marketing

There is no best product as there is no best marketing or best strategy.
But there is the need to choose to do what you can and the best you can.