Competing on value

Value-driven companies are making strong gains in both market share and shareholder value. How can your company compete?

 
As value players gain share, at varying speeds, within industries and across the economy, they are creating attention-grabbing amounts of shareholder value. As they gain share, they transform consumer attitudes about the need for trade-offs between price and quality, thus changing the nature of competition.

 
To compete with value-based rivals, mainstream companies must reconsider the perennial routes to business success: finding sources of differentiation and managing costs and prices effectively. New product and service categories, formats, and the like can help. But flawless execution is crucial for competing with value players. To succeed, CEOs will have to focus their organizations on the development of superior customer insights, effective pricing and promotions, and frontline efficiencies. The big challenges will be diagnosing where a company's capabilities fall short and then building the needed skills quickly.

For more about how to address these challenges and contend against value-driven competitors, read "When your competitor delivers more for less." (Premium)