Defining A Unique Value Proposition Is Key For Business Strategy
In the quest for enhancing economic value, companies need to differentiate themselves
In the increasingly fast and dynamic world of business, a unique value proposition serves businesses well and adds to the overall economic value. But in the quest for increasing economic value, companies have to make clear choices and trade-offs between operational efficiency, business positioning, and addressing their market niches.
Strategic trade-offs have to be made at all times to define the unique positioning of the business. Among the strategies companies are adopting is to focus on a unique set of customers, being consistent in one's offering, defining the business marketplace, creating solutions and offering unique products.
But how are companies exactly executing their unique proposition and defining their business strategy? How are they identifying their business niches?
Speaking on strategic trade-offs in the transport finance sector, Umesh Revankar, CEO and MD, Shriram Transport Company said, "We have developed strategies by focusing on financial individuals who have been owner-operator."
Consistency is another key parameter that defines business propositions. "One of the main strategic trade off we follow is to grow our customers by matching their expectations and be consistent as a business partner," said Revankar at a panel discussion on Strategy - the Idea of Efficiency, Tradeoff, Positioning and Fit, at the #PorterPrize forum in Mumbai.
On the same lines real estate developer, Godrej Properties has embarked on a differentiated business model to create value. "We have always wanted to enter a joint venture because that calls for less capital deployment. This has helped us during our down term as well. Most people diversify in the country when it comes to real estate. We are focusing on top four metro cities of the country and trying to be more of a local player in these cities when it comes to our pan-India motive," said Mohit Malhotra, MD and CEO, Godrej Properties.
In the farm equipment sector, Mahindra and Mahindra has also developed a unique proposition thus balancing the trade-off between opportunity and positioning. Rajesh Jejurikar, President, Farm Equipment Sector and Member Group Executive Board, Mahindra and Mahindra said, "There are three types of choices that have helped us in creating our strategies in developing the business: type of customers to serve; which market or countries do we participate in; and the crop cycle in the areas we are concentrating on. We decided to cut down on land holdings and compete in the less than 100 horse power energy category which has resulted in us being #3 in our business. We identified 10-15 countries and the areas to invest in and rice crop was something that we thought we should concentrate on looking at the demand in the market."
On the trade-off in business strategy in the hygiene business, Himanshu Jain, MD and VP Southeast Asia & Indian subcontinent, Sealed Air, spoke about what makes their business stand out. "We deal in primary food packaging, packaging and hygiene. They all tie in to care. We mainly focus on internal cleaning and maintaining hygiene in public places. What distinguishes us is that we offer solutions and enable reliability in all the three fields along with solutions," he said.
Mahindra Holidays and Resorts offer a value proposition in the personalized and family holiday space. Kavinder Singh, MD and CEO, Mahindra Holidays and Resorts said, "We deal in leisure and hospitality space. We serve families who like going to vacations a lot. Our business model is subscription based where occupancy is 85 per cent. We are very clear that we will deliver experiences to our members that would be personalized and family holidays like no other."
Around The World