To succeed you have to make the most of what you have got and explore different ways to create a competitive advantage.
One obvious route is to examine any potential economies of scale: how can you focus and use your expertise and specialism to do more of perhaps fewer things at a lower cost than the others.
A less obvious strategy is to explore any potential economies of scope.
What do we mean by this?
Unlike economies of scale where you look to do one thing very well in large volumes, economies of scope is about doing lots of things under one roof.
And for many small to medium businesses and organisations this could actually be the most relevant and profitable way ahead.
Whether it is better cross-selling of similar products, to a corner store offering an ATM facility, at the heart of this approach is having a relationship with a customer and asking how can you obtain more value from the relationship?
What you are doing for your customer is reducing their total cost of a product or service. They may have a host of different add-on costs: the time and money to search, locate alternatives, purchasing and receiving costs, after sales.
By offering an economy of scope you are reducing the total cost to your customer – and that is not just money but also time and reducing stress and anxiety.
Offering economies of scope can also make you more valuable to your customer and make them more likely to stay with you.
At SERIOUS for example, we work with our clients to get them the reputation they deserve and also put them in the spotlight of potential customers.
Yet we now do more than this. We now work with a growing number of clients addressing their challenge of what is called their ‘Talent Brand’ – how can you make them as attractive as possible to new recruits and retain their best staff?
We now also offer Brand Story workshops to get to the very heart of their business and its strategy, or create content marketing programmes to maximise the values of their insights, knowledge and experiences.
What economies of scope can you offer your customers? How can you provide a benefit to reduce their total cost in money, time and reduced stress and anxiety to your customers?
Andy Green, SERIOUS Director of Creativity