Jan. 21, 2025

Market Dominance Mastery: Creating Uncontested Market Space

Show Notes
Transcript

A strategic blueprint for moving beyond competition to create and dominate new market categories, changing your business from a market player to a market definer.

Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).

Powerful Business Strategies Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.

Become a supporter of this podcast: https://www.spreaker.com/podcast/powerful-business-strategies--6198916/support.

WEBVTT

1
00:00:00.040 --> 00:00:02.279
The topics and opinions express in the following show are

2
00:00:02.279 --> 00:00:03.919
solely those of the hosts and their guests and not

3
00:00:03.960 --> 00:00:06.839
those of W FOURCY Radio. It's employees are affiliates. We

4
00:00:06.919 --> 00:00:10.000
make no recommendations or endorsements for radio show programs, services,

5
00:00:10.039 --> 00:00:12.359
or products mentioned on air or on our web. No

6
00:00:12.480 --> 00:00:15.640
liability explicitor implied shall be extended to W FOURCY Radio

7
00:00:15.720 --> 00:00:18.440
or it's employees are affiliates. Any questions or comments should

8
00:00:18.480 --> 00:00:20.800
be directed to those show hosts. Thank you for choosing

9
00:00:20.960 --> 00:00:23.280
W FOURCY Radio.

10
00:00:27.160 --> 00:00:30.719
Welcome to Powerful Business Strategies, where you will find out

11
00:00:30.760 --> 00:00:34.079
that everything you have ever learned about growing your business

12
00:00:34.359 --> 00:00:38.159
is wrong. Finally, a show where you'll learn the right

13
00:00:38.200 --> 00:00:41.520
way to grow your business by learning business and financial

14
00:00:41.560 --> 00:00:46.159
strategies that your competition isn't doing And now here is

15
00:00:46.240 --> 00:00:52.000
your host. President of NeXTSTEP CFO Michael Barbarita and joining

16
00:00:52.079 --> 00:00:56.600
Michael for today's show as an executive moderator is chooky obio.

17
00:01:00.799 --> 00:01:04.400
Yes, this is chookey, and I believe that gratitude is

18
00:01:04.719 --> 00:01:08.480
undefeated and growth is about the next step. It is

19
00:01:08.519 --> 00:01:11.439
an honor for me to moderate today's discussion with my

20
00:01:11.480 --> 00:01:12.959
good friend Michael.

21
00:01:13.040 --> 00:01:15.879
Michael how are you fantastic, Choky? How are you?

22
00:01:16.319 --> 00:01:17.319
I am doing well?

23
00:01:17.799 --> 00:01:20.400
Excellent, excellent, And as Chokey said, my name is Michael

24
00:01:20.400 --> 00:01:23.799
Barberita of Next Step CFO and next Step CFO is

25
00:01:23.840 --> 00:01:28.599
a fractional CFO and strategic implementation firm, and business owners

26
00:01:28.680 --> 00:01:31.760
hire us to double their profit through implementing business and

27
00:01:31.799 --> 00:01:36.719
financial strategies that their competition isn't doing. Our vision is

28
00:01:36.760 --> 00:01:40.319
to ensure overwhelmed business owners achieve the time, freedom, and

29
00:01:40.480 --> 00:01:43.799
consistent profits to build a legacy and live the life

30
00:01:43.799 --> 00:01:47.120
they desire. Our mission is dedicated to guiding small business

31
00:01:47.159 --> 00:01:51.879
owners to leveraging their time, exploding their profit, and build

32
00:01:52.040 --> 00:01:55.959
a meaningful legacy. The show Powerful Business Strategies in our

33
00:01:55.959 --> 00:01:58.840
book of the same name, is a step toward accomplishing

34
00:01:58.879 --> 00:02:01.640
that vision and mission. With that, I handed back to

35
00:02:01.680 --> 00:02:04.719
our my co author and moderator to the show today,

36
00:02:04.879 --> 00:02:05.560
Chicky Obio.

37
00:02:06.040 --> 00:02:06.760
Michael, thank you.

38
00:02:06.799 --> 00:02:12.360
Look, I'm really energized by today's episode titled Market Dominance

39
00:02:12.520 --> 00:02:20.159
Masterrey creating uncontested market space and Michael has some practical

40
00:02:20.199 --> 00:02:24.199
insights for us today and really two things before we

41
00:02:24.240 --> 00:02:24.879
get started.

42
00:02:25.000 --> 00:02:27.439
First, just a quick disclaimer, Michael.

43
00:02:27.240 --> 00:02:31.120
And I are both affiliated with a number of different organizations,

44
00:02:31.120 --> 00:02:35.039
and I currently serve as the managing director of Business

45
00:02:35.039 --> 00:02:39.159
Development for Veta Price, a global business focused law firm.

46
00:02:39.319 --> 00:02:42.280
In addition to that, it's truly an honor to collaborate

47
00:02:42.759 --> 00:02:47.479
with Michael to moderate business roundtables really coast to coast

48
00:02:47.560 --> 00:02:52.159
and just document the insights from those business roundtables with

49
00:02:52.199 --> 00:02:55.879
business owners across the country, and we document this as

50
00:02:55.919 --> 00:02:59.319
part of our book called Powerful Business Strategies. Now, please

51
00:02:59.400 --> 00:03:02.919
note that the view expressed on this show our personal

52
00:03:03.080 --> 00:03:08.479
views based on those successful business roundtable conversations as well

53
00:03:08.479 --> 00:03:12.439
as our work with business owners. But look, my mission

54
00:03:12.520 --> 00:03:15.599
is a fearless moderators to ask the right questions to

55
00:03:15.680 --> 00:03:20.159
help you the listener learn the best business strategies that

56
00:03:20.199 --> 00:03:21.680
the competition isn't doing.

57
00:03:21.719 --> 00:03:23.960
So with that, back over to Michael.

58
00:03:24.120 --> 00:03:27.080
Thank you, jukey to Gay. So here's something that I'd

59
00:03:27.159 --> 00:03:30.400
like to share. If you have a business problem that

60
00:03:30.439 --> 00:03:33.039
you would like us to answer. Our business question or

61
00:03:33.240 --> 00:03:36.680
strategy that you'd like to ask about, please email us

62
00:03:36.680 --> 00:03:41.120
at ask at NEXTSTEPCFO dot net. It doesn't matter what

63
00:03:41.240 --> 00:03:44.280
the business problem is or the question and we'll answer

64
00:03:44.319 --> 00:03:46.919
it for you. There are a couple things we ask

65
00:03:47.039 --> 00:03:50.280
though Number one please state whether it is something we

66
00:03:50.360 --> 00:03:53.159
can answer on the air or if it's confidential, and

67
00:03:53.199 --> 00:03:55.520
of course if it's confidential, we won't put it on

68
00:03:55.560 --> 00:03:58.960
the air. And number two please provide your phone number

69
00:03:59.360 --> 00:04:02.879
because business problems can be complex and we might need

70
00:04:02.919 --> 00:04:08.240
more context or clarity are surrounding your question. And that

71
00:04:08.319 --> 00:04:12.159
email address again is ask at next STEPSDFO dot net.

72
00:04:12.479 --> 00:04:14.159
I do want to point out that we've had a

73
00:04:14.199 --> 00:04:20.319
couple uh business problems that we've answered, but they requested confidentiality,

74
00:04:20.720 --> 00:04:26.680
which we will always always honor. So for today's inspirational minute,

75
00:04:26.720 --> 00:04:30.120
you know, to every business owner listening right now, this

76
00:04:30.199 --> 00:04:33.480
is this is your moment of recognition. In a world

77
00:04:33.519 --> 00:04:37.519
where everyone talks about problems, you're out there creating solutions.

78
00:04:37.839 --> 00:04:42.040
What others see obstacles, you see opportunities. What others back

79
00:04:42.079 --> 00:04:45.639
away from challenges, You step forward with courage and conviction.

80
00:04:46.480 --> 00:04:50.040
We're not You're not just running a business. You're creating possibilities.

81
00:04:50.519 --> 00:04:54.600
You know, your sleepless nights turn into somebody else's job opportunity,

82
00:04:55.279 --> 00:05:00.079
Your risk becomes someone else's steady paycheck. Your vision it

83
00:05:00.079 --> 00:05:03.920
becomes a community's growth. While others depend on the path

84
00:05:04.000 --> 00:05:07.920
that exists. You're out there blazing new trails, definding new categories,

85
00:05:08.439 --> 00:05:13.600
and creating new possibilities. The headlines might celebrate big Tech

86
00:05:13.639 --> 00:05:17.439
and Wall Street, but you, the business owners on Main

87
00:05:17.519 --> 00:05:20.399
street across the country, you are the real heroes of

88
00:05:20.399 --> 00:05:23.720
our economy. You are the ones taking personal risks to

89
00:05:23.720 --> 00:05:27.720
solve real problems. You're the ones turning ideas into reality,

90
00:05:28.279 --> 00:05:35.040
dreams into jobs and excuse me and challenges into opportunities.

91
00:05:35.519 --> 00:05:38.560
Take pride in knowing that every decision you make, every

92
00:05:38.639 --> 00:05:42.360
risk you take, every challenge you overcome, is contributing to

93
00:05:42.439 --> 00:05:46.600
something bigger than yourself. You're the innovators, the job creators,

94
00:05:46.639 --> 00:05:51.480
the problem solvers our world desperately needs. This is your moment.

95
00:05:52.279 --> 00:05:57.319
You are seen, you are valued, you are appreciated. Keep

96
00:05:57.360 --> 00:06:02.199
pushing forward, keep breaking barriers, keep transforming problems into opportunities,

97
00:06:02.199 --> 00:06:05.800
because what you do matters not just to your business,

98
00:06:06.360 --> 00:06:11.759
but to every single life you touch through your business.

99
00:06:14.680 --> 00:06:20.399
If you look at any industry, they didn't just enter

100
00:06:20.439 --> 00:06:25.680
a market, they created one. They didn't fight for market share,

101
00:06:25.879 --> 00:06:31.399
They made the market share fight irrelevant. This is about

102
00:06:31.439 --> 00:06:35.879
being better than your competition. It's about It's about making

103
00:06:35.920 --> 00:06:40.079
your competition irrelevant because every business has the potential to

104
00:06:40.079 --> 00:06:45.279
define its own category, to create its own uncontested market space.

105
00:06:45.879 --> 00:06:49.920
Today you'll learn how to stop competing and stop dominating.

106
00:06:50.000 --> 00:06:55.120
Because true market leaders don't join the game, they change

107
00:06:55.160 --> 00:07:01.120
the rules entirely. And so today with diving deep into

108
00:07:01.160 --> 00:07:06.759
a strategy that transforms businesses from market participants into market definers,

109
00:07:06.920 --> 00:07:10.600
true market dominance, if you will. And here's a shocking reality.

110
00:07:10.720 --> 00:07:14.079
Ninety percent of businesses are stuck in what we call

111
00:07:15.120 --> 00:07:21.040
competitive quicksand the more they struggle to compete, the deeper

112
00:07:21.079 --> 00:07:25.920
they sink. They're fighting for small advantages and oversaturated markets,

113
00:07:25.959 --> 00:07:32.720
while the real opportunities lie in creating entirely new market spaces. Today,

114
00:07:32.759 --> 00:07:36.399
I'm going to share our category dominance framework, a systematic

115
00:07:36.439 --> 00:07:40.560
approach for creating and dominating new market categories, and we'll

116
00:07:40.600 --> 00:07:45.839
cover why traditional competitive strategies are becoming less effective. We'll

117
00:07:45.839 --> 00:07:50.680
cover how to identify and create new market categories. We'll

118
00:07:50.720 --> 00:07:53.920
talk about the four pillars of market dominance and how

119
00:07:53.959 --> 00:07:57.680
to make your competition irrelevant. Most importantly, i'll share some

120
00:07:57.759 --> 00:08:01.279
case studies of businesses that have successfully implemented these strategies,

121
00:08:01.439 --> 00:08:05.639
including specific test steps that they took. And let's begin

122
00:08:06.040 --> 00:08:11.959
by understanding why traditional competitive strategies are failing and what's

123
00:08:12.000 --> 00:08:16.399
replacing them. So let's dive deep into this framework that

124
00:08:16.439 --> 00:08:22.240
we call Category Creation framework and understand each component in detail.

125
00:08:22.800 --> 00:08:30.279
And the framework has essentially five four actually four essential components.

126
00:08:30.759 --> 00:08:36.720
The first the first is category identification, which involves five areas.

127
00:08:37.159 --> 00:08:41.000
Number one, market gap analysis, so that you have to

128
00:08:41.039 --> 00:08:45.519
make a systematic study of unmet needs. When you look

129
00:08:45.519 --> 00:08:48.919
at a market, you have to find the gaps, and

130
00:08:49.320 --> 00:08:52.600
you have to have unfilled customer demands and you have

131
00:08:52.720 --> 00:08:56.120
service gaps in the current market landscape. No matter what

132
00:08:56.200 --> 00:08:58.919
the industry, there are gaps. You have to find them.

133
00:09:00.080 --> 00:09:05.240
Customer pain point mapping. That's a detailed documentation of customer frustrations,

134
00:09:05.720 --> 00:09:11.320
challenges and problems that aren't being adequately addressed by existing solutions.

135
00:09:12.080 --> 00:09:17.000
Kind of a customer avatar, if you will. Technology trend

136
00:09:17.080 --> 00:09:22.600
assessment an evaluation of emerging technologies that could enable new

137
00:09:22.639 --> 00:09:29.440
solutions or create new market opportunities. Competitive landscape evaluation a

138
00:09:29.519 --> 00:09:35.679
comprehensive analysis of competitor offerings, capabilities, and limitations to identify

139
00:09:35.799 --> 00:09:42.600
underserved areas. And then future state visioning a strategic projection

140
00:09:42.840 --> 00:09:46.799
of where the market is heading and what solutions will

141
00:09:46.840 --> 00:09:52.000
be needed in the coming years. So then the second

142
00:09:52.080 --> 00:09:56.759
part of this category creation framework is what we call

143
00:09:56.879 --> 00:10:02.120
category definition and it includes category parameter settings such as

144
00:10:02.200 --> 00:10:06.480
clear definition of what is and what isn't included in

145
00:10:06.519 --> 00:10:13.000
your new category to establish distinct boundaries. Value proposition development,

146
00:10:13.120 --> 00:10:16.639
so creation of a unique and compelling value statement that

147
00:10:16.799 --> 00:10:24.039
clearly articulates why your category matters. Market sizing and validation.

148
00:10:24.200 --> 00:10:27.720
This is a quantitative analysis of the potential market size

149
00:10:28.120 --> 00:10:35.000
and verification that sufficient demand exists. Entry barrier identification that's

150
00:10:35.039 --> 00:10:39.600
an assessment of obstacles that might prevent others from easily

151
00:10:39.759 --> 00:10:44.679
entering your category. And then scaling requirement planning, so this

152
00:10:44.759 --> 00:10:50.080
is strategic planning for the resources, systems, and capabilities needed

153
00:10:50.120 --> 00:10:54.960
to grow within your category. Then the third step is

154
00:10:55.039 --> 00:10:59.200
category ownership and it's established through thought leadership development, which

155
00:10:59.240 --> 00:11:03.200
is creation and development of authoritative content that positions you

156
00:11:03.320 --> 00:11:09.639
as the category expert. Methodology creation the development of proprietary

157
00:11:09.720 --> 00:11:13.840
processes and approaches that define how things should be done

158
00:11:13.879 --> 00:11:18.879
in your category. Standard setting so in its establishment of

159
00:11:19.000 --> 00:11:25.200
benchmarks and best practices that others in the category must follow,

160
00:11:26.399 --> 00:11:30.639
and this partnership, building strategic relationships with key players who

161
00:11:30.720 --> 00:11:34.600
can help validate and strengthen your category position, and then

162
00:11:34.679 --> 00:11:37.960
market education. This is the systematic effort to teach customers

163
00:11:38.440 --> 00:11:44.120
why your category matters and how it differs from existing solutions. No,

164
00:11:44.440 --> 00:11:50.399
it's just simply all about finding that differentiation and a

165
00:11:50.440 --> 00:11:53.840
deep analysis of your industry is the first place you

166
00:11:53.879 --> 00:11:58.559
need to go. The fourth step here in this category

167
00:11:59.600 --> 00:12:05.679
frame work is category defense through intellectual property protection, which

168
00:12:05.720 --> 00:12:09.840
is legal safeguards for your unique methodologies and processes and technologies.

169
00:12:10.200 --> 00:12:13.720
You want to be able to either patent or trademark

170
00:12:13.799 --> 00:12:16.639
or both. Whatever it is that you come up with

171
00:12:17.000 --> 00:12:23.960
that represents a differentiation in the industry. Strategic partnerships, exclusive

172
00:12:24.000 --> 00:12:28.759
relationships with key suppliers, distributors, or complementary service providers needs

173
00:12:28.799 --> 00:12:33.320
to be established if you're going to try to be

174
00:12:33.480 --> 00:12:39.159
different in your particular market. Customer lock in strategies, creation

175
00:12:39.240 --> 00:12:43.200
of switching costs and integrated solutions that make it difficult

176
00:12:43.200 --> 00:12:48.679
for customers to leave. Continuous innovation, ongoing development of new

177
00:12:48.679 --> 00:12:52.039
features and capabilities that keep you ahead of potential competitors.

178
00:12:52.440 --> 00:12:56.759
And market position reinforcement, which of regular activities that strengthen

179
00:12:56.799 --> 00:13:00.519
your leadership position and make it harder for others to compete.

180
00:13:01.159 --> 00:13:04.799
So let me share a detailed case study that brings

181
00:13:04.840 --> 00:13:09.840
this framework to life. So a small manufacturing consultancy competing

182
00:13:09.919 --> 00:13:14.720
in the crowded process improvement space. The revenue was about

183
00:13:14.720 --> 00:13:18.440
two point two million annually. It was stagnant margins were

184
00:13:18.480 --> 00:13:23.360
shrinking due to intense competition, not unlike what other business

185
00:13:23.360 --> 00:13:27.799
owners are experiencing in so many industries. They implemented the

186
00:13:27.840 --> 00:13:33.159
category creation framework with detailed analysis at each step. So

187
00:13:33.200 --> 00:13:37.879
if your recall step one was category identification, they analyzed

188
00:13:37.919 --> 00:13:43.720
three areas, three cares that's unmet market needs. Why. They

189
00:13:43.720 --> 00:13:48.519
conducted extensive interviews with two hundred mid sized manufacturers who

190
00:13:48.519 --> 00:13:54.240
identified pain points and existing solutions that weren't being addressed.

191
00:13:54.919 --> 00:14:00.000
And this revealed that while big manufacturers had sophisticated analytics system,

192
00:14:00.759 --> 00:14:09.159
mid sized companies were underserved industry blind spots. It's another

193
00:14:09.200 --> 00:14:11.519
thing that this company went to why. They mapped the

194
00:14:11.720 --> 00:14:16.879
entire industry solution landscape and found that while individual components

195
00:14:16.879 --> 00:14:21.440
existed like data analytics, maintenance planning, and process improvement, no

196
00:14:21.480 --> 00:14:26.279
one was integrating them. Specifically from mid sized manufacturers that

197
00:14:26.480 --> 00:14:32.320
was the gap. This gap represented a significant opportunity. So

198
00:14:32.519 --> 00:14:37.039
all of the big companies were being serviced through this

199
00:14:37.320 --> 00:14:43.720
process that this company discovered, but they weren't servicing mid

200
00:14:43.799 --> 00:14:53.039
sized businesses. Emerging technologies why well, they analyzed emerging AI

201
00:14:52.360 --> 00:14:58.639
and other technologies to identify capabilities that could be applied

202
00:14:58.639 --> 00:15:03.440
to manufacturing process in new ways, and this technological assessment

203
00:15:03.720 --> 00:15:08.879
helped them create barriers to entry for potential competitors to

204
00:15:08.879 --> 00:15:14.519
come in. Step two was category definition. They created a

205
00:15:14.559 --> 00:15:21.200
new category called predictive manufacturing intelligence with specific characteristics so

206
00:15:21.240 --> 00:15:24.080
it was real time. This was real time performance monitoring.

207
00:15:24.159 --> 00:15:28.360
Why do they need that? Traditional systems provided delayed data,

208
00:15:28.440 --> 00:15:32.159
But their research showed that immediate feedback could reduce downtime

209
00:15:32.200 --> 00:15:35.559
by forty seven percent and this became a key differentiator

210
00:15:35.639 --> 00:15:40.759
in their product and their category definition. They also had

211
00:15:41.000 --> 00:15:47.840
predictive maintenance algorithms. Why well, they developed custom algorithms specifically

212
00:15:47.879 --> 00:15:53.039
for mid sized manufacturing equipment, filling a gap between expensive

213
00:15:53.240 --> 00:15:57.879
enterprise solution and basic maintenance schedules. And this targeted approach

214
00:15:57.919 --> 00:16:02.320
addressed a specific market need while creating a barrier to entry.

215
00:16:03.440 --> 00:16:06.159
So this company did a lot of research on where

216
00:16:06.200 --> 00:16:11.759
the gaps were custom return on investment tracking. Why Well,

217
00:16:11.840 --> 00:16:16.559
they needed they created industry specific ROI metrics that spoke

218
00:16:16.600 --> 00:16:21.000
directly to those mid sized manufacturers' concerns, making their value

219
00:16:21.000 --> 00:16:25.480
proposition clear and measurable, and this helped overcome the natural

220
00:16:25.519 --> 00:16:32.879
resistance to adopting new technologies. Implementation support Why Well. Their

221
00:16:32.919 --> 00:16:36.720
research showed that midsize manufacturers often lacked the internal resources

222
00:16:37.039 --> 00:16:42.159
for complex system implementation, and by including comprehensive support, they

223
00:16:42.200 --> 00:16:48.399
removed a major adoption barrier. Very well thought out, Yes,

224
00:16:49.320 --> 00:16:54.120
step three category ownership that they establshed, and they established

225
00:16:54.120 --> 00:16:59.360
ownership through proprietary methodology development. Why Well, they created and

226
00:16:59.519 --> 00:17:05.079
trade more marked their mid market manufacturing optimization process, establishing

227
00:17:05.119 --> 00:17:09.480
themselves as the category creator and setting the standards that

228
00:17:09.599 --> 00:17:15.160
others would have to follow. Industry specific case studies. Why Well,

229
00:17:16.039 --> 00:17:20.880
they documented detailed success stories focusing on mid sized manufacturers,

230
00:17:20.920 --> 00:17:25.799
creating credibility and creating a library of evidence that their

231
00:17:25.839 --> 00:17:29.519
approach worked specifically for that target market of those mid

232
00:17:29.640 --> 00:17:35.599
sized manufacturers. Thought leadership content Well, They published monthly industry

233
00:17:35.640 --> 00:17:40.200
research reports and prediction pieces, positioning themselves is that go

234
00:17:40.279 --> 00:17:43.599
to expert in their new category and making it difficult

235
00:17:43.720 --> 00:17:48.759
for others to claim leadership in that category, and then

236
00:17:48.839 --> 00:17:53.480
category specific language creation. Why Well, They're developing promoted specific

237
00:17:54.279 --> 00:17:57.880
terms and metrics for their category, making for their category,

238
00:17:58.480 --> 00:18:02.400
and that made it difficult for competitors to enter without

239
00:18:02.480 --> 00:18:07.799
using their terminology and thus reinforcing their ownership. That trademarking

240
00:18:07.880 --> 00:18:10.599
is very important. When you have a process, I don't

241
00:18:10.599 --> 00:18:14.559
care what it is that you're sending out in the world,

242
00:18:15.759 --> 00:18:21.920
having it trademark protected is an incredible value business value

243
00:18:21.920 --> 00:18:28.880
building strategy. Step four category defense. Theyted They protected their

244
00:18:28.880 --> 00:18:32.640
position by patent filing for key methodologies. They were able

245
00:18:32.640 --> 00:18:35.880
to identify and protected the unique elements of their approach,

246
00:18:36.160 --> 00:18:39.640
creating legal barriers to direct competition and ensuring long term

247
00:18:40.039 --> 00:18:45.680
category ownership. They built strategic partnerships. Why Well, they formed

248
00:18:45.720 --> 00:18:50.759
exclusive relationships with key technology providers and industry associations, making

249
00:18:50.759 --> 00:18:56.200
it difficult for competitors to replicate their complete solution and

250
00:18:56.240 --> 00:19:03.200
then creating high switching costs. They developed deep integration with

251
00:19:03.319 --> 00:19:08.480
client systems and processes, making their solution integral the client

252
00:19:08.519 --> 00:19:14.319
operations and difficult to replace. Developing unique delivery systems well,

253
00:19:14.359 --> 00:19:19.000
they created proprietary implementation and support systems that competitors couldn't

254
00:19:19.000 --> 00:19:23.920
easily replicate, further strengthening their market position. And then after

255
00:19:24.000 --> 00:19:27.200
eighteen months, revenue grew to eight point seven million from

256
00:19:27.240 --> 00:19:31.680
two point two Why is that their clear category definition

257
00:19:32.200 --> 00:19:37.640
and ownership made sail cycles shorter and more predictable, while

258
00:19:37.680 --> 00:19:42.400
their unique position demanded premium pricing. Ladies and gentlemen, they

259
00:19:42.440 --> 00:19:47.440
solved the problem and their margins increased from twenty two

260
00:19:47.440 --> 00:19:51.000
percent to forty seven percent. And as category creators, they

261
00:19:51.000 --> 00:19:55.319
could set pricing based on value delivered rather than competitive pressures,

262
00:19:56.119 --> 00:20:01.839
another important element to market dominance. And then sales cycles

263
00:20:01.880 --> 00:20:07.880
shortened by sixty five percent. Why Well, they're clear category

264
00:20:07.960 --> 00:20:11.519
definition and proven return on investment metrics made the buying

265
00:20:11.599 --> 00:20:15.640
decision simpler for prospects, reducing that time from initial contact

266
00:20:15.640 --> 00:20:20.160
to close. And how did competition become irrelevant? Well, the

267
00:20:20.319 --> 00:20:25.559
comprehensive approach to category creation and defense made it difficult

268
00:20:25.640 --> 00:20:29.640
for competitors to enter this space. The key insight when

269
00:20:29.680 --> 00:20:36.440
you create and owner category, you make the rules. Any

270
00:20:36.519 --> 00:20:37.920
questions from the audience to yourself.

271
00:20:38.000 --> 00:20:44.079
Juki, it's a remarkable Michael, like we are really resonating

272
00:20:44.119 --> 00:20:46.720
with a number of listeners to coast on this. In fact,

273
00:20:47.279 --> 00:20:49.039
there are a couple of different questions, and I think

274
00:20:49.079 --> 00:20:51.160
what I'll do here, I'll see up one of these

275
00:20:51.359 --> 00:20:53.119
key questions because it's come up in a couple of

276
00:20:53.200 --> 00:20:56.680
different flavors. So, Michael, when a business owner starts to

277
00:20:56.839 --> 00:21:01.480
implement the category creation framework, which of those components do

278
00:21:01.519 --> 00:21:06.200
you typically see as presenting the biggest challenge? And Michael,

279
00:21:06.240 --> 00:21:09.000
how would you recommend addressing that challenge?

280
00:21:09.839 --> 00:21:14.359
So, in our experience anyway, it's been category definition. That's

281
00:21:14.440 --> 00:21:19.400
usually the most challenging component because it requires discipline to

282
00:21:19.640 --> 00:21:24.319
establish those clear boundaries. Discipline and business owners often try

283
00:21:24.400 --> 00:21:30.160
to make that category too broad problem, too broad, you know,

284
00:21:30.319 --> 00:21:35.200
diluting its power. For example, a company initially wanted to

285
00:21:35.279 --> 00:21:40.319
target all manufacturers, but by focusing specifically on mid side

286
00:21:40.799 --> 00:21:43.720
this example that I just gave you, focusing specifically on

287
00:21:44.240 --> 00:21:48.200
mid size manufacturers and their unique challenges, they created a

288
00:21:48.279 --> 00:21:51.720
much more powerful category position. And the key is to

289
00:21:51.799 --> 00:21:57.079
be narrow enough to dominate, but broad enough the scale.

290
00:21:57.720 --> 00:22:01.480
Let me say that again. The key is is to

291
00:22:01.480 --> 00:22:08.200
be now enough to dominate, but broad enough to scale. Yeah.

292
00:22:08.240 --> 00:22:12.279
Those market gaps sometimes are real thin. Yeah, and you

293
00:22:12.400 --> 00:22:16.759
have to go and and see if that market gap

294
00:22:17.440 --> 00:22:21.160
is dominating enough A and B broad enough to scale.

295
00:22:22.119 --> 00:22:22.640
Remarkable.

296
00:22:22.759 --> 00:22:25.559
It's a very nuanced, but strategic way to look at this.

297
00:22:25.880 --> 00:22:30.480
Michael's interesting. So there's some nice comments here from the listeners.

298
00:22:31.279 --> 00:22:34.319
When you started to talk about discipline, discipline, folks are

299
00:22:34.359 --> 00:22:36.960
saying you reminded them of Jim Mora.

300
00:22:37.799 --> 00:22:40.559
Playoffs, talking about playoffs.

301
00:22:42.319 --> 00:22:46.039
Yeah, folks, we are talking about discipline, for sure. It

302
00:22:46.079 --> 00:22:48.279
does take a level of discipline. Michael, Do you have

303
00:22:49.119 --> 00:22:50.880
the time to take on another quick question?

304
00:22:51.440 --> 00:22:51.680
Sure?

305
00:22:51.799 --> 00:22:54.680
I think yeah, I think this one has to be addressed.

306
00:22:54.680 --> 00:22:55.960
I think in a unique way here.

307
00:22:55.960 --> 00:22:59.680
So some business owners they might worry that, look, creating

308
00:22:59.720 --> 00:23:01.480
a new new categories.

309
00:23:00.920 --> 00:23:03.319
Just too risky just as part of their strategic plan.

310
00:23:04.079 --> 00:23:09.079
What would be your response to individual business owners Michael

311
00:23:09.079 --> 00:23:12.799
that feel it's safer to just compete based on existing

312
00:23:13.400 --> 00:23:14.359
market dynamics.

313
00:23:14.920 --> 00:23:19.319
Well, actually tricky. Competing in existing markets is often riskier

314
00:23:19.319 --> 00:23:22.240
than creating a new category because in established markets, you're

315
00:23:22.240 --> 00:23:31.799
fighting against entrenched competitors, declining margins, pricing, commoditization. And look

316
00:23:31.839 --> 00:23:35.079
at our case study. You know, they were competing in

317
00:23:35.119 --> 00:23:38.559
the general process improvement space and they were stagnant at

318
00:23:38.599 --> 00:23:40.920
two point two million. They after creating a new category,

319
00:23:40.960 --> 00:23:43.480
they grew to eight point seven in eighteen months with

320
00:23:43.559 --> 00:23:47.680
higher margins. The real risk is staying in an overcrowded

321
00:23:47.680 --> 00:23:52.319
market where you can't different eate markable. It's a good point.

322
00:23:53.480 --> 00:23:55.680
So before we continue our discussion, we're going to take

323
00:23:55.680 --> 00:23:59.720
a ninety second break. Hey, their business owners, let me

324
00:23:59.759 --> 00:24:02.559
ask you something. Are you tied of blending in with

325
00:24:02.640 --> 00:24:06.920
your competitors? Frustrated with slow growth and slim margins. Well,

326
00:24:07.039 --> 00:24:10.279
I've got news for you. Everything you've ever learned about

327
00:24:10.319 --> 00:24:14.799
growing your business is wrong. Don't worry. I'm here to

328
00:24:14.839 --> 00:24:17.720
let you in on a secret weapon, your position of

329
00:24:17.799 --> 00:24:21.680
market dominance. It's what sets you apart, makes you irreplaceable,

330
00:24:22.079 --> 00:24:25.559
and has customers lining up at your door. My name

331
00:24:25.599 --> 00:24:29.000
is Michael barber Rita from Next Step CFO. I know

332
00:24:29.079 --> 00:24:32.519
what you're thinking. Sounds great, Michael, How do I find

333
00:24:32.519 --> 00:24:36.200
my position of market dominance? Well, that's exactly why we've

334
00:24:36.200 --> 00:24:40.039
created our game changing impleitation program called Next Step to

335
00:24:40.119 --> 00:24:43.559
Market Dominance in just ninety days, will guide you step

336
00:24:43.559 --> 00:24:46.599
by step to a position of market dominance by uncovering

337
00:24:46.599 --> 00:24:50.160
your unique strengths that competitors can't touch. By crafting a

338
00:24:50.160 --> 00:24:53.880
message that resonates deeply with your ideal customer, by building

339
00:24:53.880 --> 00:24:56.640
a strategy that turns you into the go to expert

340
00:24:56.640 --> 00:25:00.119
in your field. Now this is in theory. These are

341
00:25:00.119 --> 00:25:03.319
battle tests and strategies that have helped businesses like yours double,

342
00:25:03.400 --> 00:25:07.920
triple and quadruple their revenue. Don't let another quarter go

343
00:25:08.000 --> 00:25:12.519
by struggling to standout. It's time to dominate your market. Period.

344
00:25:13.160 --> 00:25:17.480
Go to NEXTSTEPCFO dot net forward slash contact. Fill out

345
00:25:17.480 --> 00:25:20.519
the form and in the message section put the word

346
00:25:20.759 --> 00:25:24.480
dominate or call us at seven eight one three two

347
00:25:24.559 --> 00:25:28.200
six three A two two. That's next step CFO dot

348
00:25:28.279 --> 00:25:31.519
net forward slash Contact or call us at seven eight

349
00:25:31.599 --> 00:25:36.559
one three two six three A two two. Welcome back.

350
00:25:37.160 --> 00:25:39.200
So let's dive a little deeper into the what we

351
00:25:39.319 --> 00:25:44.279
call the four pillars that support unassailable market dominance. So

352
00:25:44.359 --> 00:25:47.640
each pillar is crucial and works in concert with the

353
00:25:47.680 --> 00:25:51.519
others to create a solid market position. So the first

354
00:25:51.559 --> 00:25:57.119
is strategic differentiation. This pillar focuses on creating meaningful separation

355
00:25:57.240 --> 00:26:00.720
from existing market solutions through development of a position of

356
00:26:00.720 --> 00:26:05.119
market dominance. We've made many shows and many references to that.

357
00:26:05.119 --> 00:26:08.480
That's the first two components of the conversion formula. Captivate

358
00:26:08.519 --> 00:26:13.079
and fascinate. That's identifying the problem and solution. Next is

359
00:26:13.160 --> 00:26:18.960
service product design architecture, which is building a structured framework

360
00:26:19.039 --> 00:26:23.559
for how your offering is organized, delivered and support it

361
00:26:23.640 --> 00:26:28.519
in ways that make it difficult to replicate. Delivery model innovation,

362
00:26:28.680 --> 00:26:32.440
so creating unique ways to deliver your product or servers

363
00:26:32.480 --> 00:26:37.640
that provide better results or experiences than those traditional approaches.

364
00:26:38.799 --> 00:26:43.680
Next is market positioning strategy, establishing a distinct market, distinct

365
00:26:43.759 --> 00:26:46.960
place in the market that sets you apart from competitors

366
00:26:47.279 --> 00:26:52.440
and resonates with your target audience. Competitive mote building well

367
00:26:52.559 --> 00:26:56.960
creating sustainable advantages that protect your market position and make

368
00:26:57.000 --> 00:27:02.119
it difficult for competitors to challenge you a actively. The

369
00:27:02.240 --> 00:27:06.440
second the second step here on the second pillar of

370
00:27:06.480 --> 00:27:12.200
the four pillars, is the value innovation. This pillar concentrates

371
00:27:12.240 --> 00:27:17.279
on creating new value rather than competing on existing value metrics,

372
00:27:18.240 --> 00:27:23.359
so it includes things like value chain reconstruction, so redesigning

373
00:27:23.640 --> 00:27:28.559
you how value is created and delivered to eliminate efficiencies

374
00:27:28.599 --> 00:27:35.400
and create new benefits. Customer experience redesign reimagining how customers

375
00:27:35.480 --> 00:27:39.200
interact with your product or service to create superior outcomes.

376
00:27:40.319 --> 00:27:45.279
Problem redefinition looking at customer challenges from new angles to

377
00:27:45.400 --> 00:27:50.039
discover better solutions than current market offerings. Some of that

378
00:27:50.119 --> 00:27:52.880
problem redefinition comes from really looking at the problems that

379
00:27:52.920 --> 00:27:59.359
the industry has. Solution architect development that's creating comprehensive solutions

380
00:27:59.359 --> 00:28:02.960
that address both obvious and hidden customer needs and unique

381
00:28:03.000 --> 00:28:07.440
ways pricing. Model innovation that's developing new ways to price

382
00:28:07.480 --> 00:28:11.559
and package your offerings that better align with customer value perception.

383
00:28:12.920 --> 00:28:17.400
Market education is the third pillar. This pillar establishes your

384
00:28:17.599 --> 00:28:21.759
company as the category authority and thought leader, so you

385
00:28:21.839 --> 00:28:26.960
have it under this category. You have industry standard setting,

386
00:28:27.079 --> 00:28:30.960
which is creating and promoting new benchmarks and best practices

387
00:28:31.000 --> 00:28:35.000
that position you as the category leader. Knowledge based development,

388
00:28:35.039 --> 00:28:40.200
which is building a comprehensive repository of insights and information

389
00:28:40.279 --> 00:28:44.559
that makes you to go to authority. Certification program creation,

390
00:28:44.640 --> 00:28:49.000
developing training and certification programs that establish you as a

391
00:28:49.039 --> 00:28:55.319
standard bearer in your category. Content strategy implementation. This is

392
00:28:55.359 --> 00:29:00.720
creating and distributing educational content that shapes how people think

393
00:29:01.160 --> 00:29:06.039
about your category. Authority positioning, which is establishing your company

394
00:29:06.119 --> 00:29:09.920
is a definitive expert and trusted advisor in your market space.

395
00:29:11.400 --> 00:29:15.799
The fourth pillar is scale defense. This pillar focus on

396
00:29:15.920 --> 00:29:21.480

Market Dominance Mastery: Creating Uncontested Market Space

Listen On

Featured Episodes

Recent Episodes