How to Attack Competitor’s Strengths

The Art of Turning Competitor Strengths into Opportunities

In the intense world of business, competitors often parade their strengths as unassailable fortresses. However, for the savvy strategist, these strongholds can become gateways to unique opportunities. Embracing the counterintuitive approach of leveraging a competitor’s strengths can drastically reshape market dynamics in your favor.

This article dives deep into the mechanics of this strategy, painting a picture of how businesses can redefine competitive benchmarks. By the end, you’ll be equipped with actionable insights on how to use this avant-garde method to your advantage.

Why is it essential to focus on a competitor’s strengths rather than weaknesses?

Focusing on a competitor’s weaknesses is like picking low-hanging fruits. While it might offer quick gains, it rarely leads to sustainable competitive advantages. In contrast, taking on a competitor’s strengths requires a deeper understanding of the market and can lead to innovative solutions that redefine the industry’s status quo.

For example, when Apple introduced the iPhone, BlackBerry was the industry leader, particularly known for its secure email services – a strength. Apple didn’t just target BlackBerry’s weaknesses; it revolutionized the entire smartphone user experience, making BlackBerry’s email service just one feature among many on a phone.

Moreover, attacking strengths forces a competitor to defend their core competencies, which can be resource-intensive and may lead to strategic errors. A classic example is the Pepsi vs. Coca-Cola taste tests of the 1980s. Pepsi cleverly took on Coca-Cola’s taste – its core strength – leading to the infamous “New Coke” debacle.

It also sends a strong message to the market. Successfully challenging a competitor at their best establishes your brand as a genuine challenger and can lead to increased market respect and customer loyalty.

Lastly, this approach can uncover unmet customer needs. By reimagining a competitor’s strength from a fresh perspective, companies can discover innovative solutions to longstanding industry challenges.

How can businesses identify genuine strengths versus perceived strengths in competitors?

Separating genuine strengths from perceived ones is vital to ensure that efforts aren’t wasted on attacking marketing fluff. Genuine strengths are rooted in tangible benefits to the customer or unique competencies of a competitor.

One effective method is Customer Feedback Analysis. Engage with customers and gather feedback on why they prefer a competitor’s product. For instance, Toyota might find that customers prefer Tesla not just for the brand but because of specific features like autonomous driving capabilities.

Third-party Reviews can also be illuminating. Websites like Capterra for software products or J.D. Power for cars provide unbiased reviews that can help identify genuine strengths.

Another tactic is Product Teardowns. Companies like Samsung might buy Apple products, disassemble them, and study the technology to understand what genuinely makes them superior.

Lastly, Market Share Analysis can also help. A consistently growing market share might indicate that the competitor’s strengths are genuine and not just perceived.

What are some effective strategies to counteract these identified strengths?

Once genuine strengths are identified, the next step is formulating strategies to challenge them head-on. Various approaches can be employed, depending on the nature of the strength and the industry dynamics.

Product Innovation is a potent tool. Consider how Zoom entered a market dominated by Skype and became the preferred choice for many. Zoom focused on delivering a frictionless video conferencing experience, directly challenging Skype’s strength.

Service Enhancement can also be a game-changer. When FedEx observed that UPS’s strength lay in its vast distribution network, FedEx countered by offering guaranteed overnight delivery, emphasizing reliability over reach.

Rebranding or Repositioning offers another avenue. When McDonald’s faced criticism for its unhealthy food – a strength for health-focused competitors – it introduced a range of healthier options, repositioning itself in the market.

Strategic Alliances can also help in amplifying strengths. Spotify’s partnerships with various telecom providers allowed it to leverage its vast song library strength by making it more accessible to users worldwide.

Finally, Cost Leadership can sometimes prove effective. By offering a product or service of similar quality at a reduced price, companies can challenge the perceived value proposition of a competitor’s strengths.

How can businesses measure the success of attacking a competitor’s strengths?

Attacking a competitor’s strengths is not without risks, so it’s crucial to measure the success of such endeavors. Several metrics can indicate whether the strategies employed are yielding the desired outcomes.

One primary indicator is Market Share Growth. If your brand starts capturing a more significant portion of the market after implementing your strategies, it’s a clear sign of success.

Increased Brand Equity is another metric. If customers start perceiving your brand as superior or on par with the competitor whose strengths you’ve targeted, you’re on the right track.

Customer Acquisition Cost (CAC) can also provide insights. A reduced CAC post-implementation might suggest that customers now see more value in your offering compared to the competitor’s.

Customer Feedback is invaluable. If existing or new customers mention features or services that were introduced as part of the strategy to counter a competitor’s strengths, it signifies traction.

Lastly, the Financial Performance of the business, including increased revenues or profit margins, can be a direct indicator of the success of the strategy.

Are there any potential risks or pitfalls to be aware of?

While the rewards of successfully attacking a competitor’s strengths can be substantial, the strategy is fraught with risks that businesses need to be wary of.

Firstly, there’s the risk of Backlash. Attempting to take on a competitor’s strengths and failing can damage a brand’s reputation. Kodak’s attempt to challenge digital cameras with the Advantix Preview film camera is a classic example of this pitfall.

Misjudgment is another risk. Misinterpreting a genuine strength or underestimating the depth of a competitor’s competency can lead

to misguided strategies. Yahoo’s acquisition of Tumblr, aiming to challenge Facebook’s social media dominance, ended up being a costly misjudgment.

Also, such strategies can sometimes lead to a Price War, which might erode profits. Airlines frequently fall into this trap, trying to outdo each other on fares, often at the cost of profitability.

Lastly, there’s the risk of Legal Challenges. Companies need to ensure they aren’t infringing on patents or copyrights when attempting to replicate or challenge a competitor’s strengths.

It’s essential to approach this strategy with thorough research, a deep understanding of both your and your competitor’s capabilities, and a willingness to pivot if things don’t go as planned.

Is it always advisable to attack a competitor’s strengths?

Attacking a competitor’s strengths can be a powerful strategy, but it’s not always the best approach. The decision should be based on careful analysis and strategic considerations.

For businesses with distinctive competencies in areas different from their competitors, it might be more beneficial to double down on those strengths rather than challenge a competitor in their domain. For instance, while Apple focuses on premium design and user experience, Xiaomi thrives on delivering high-quality tech at affordable prices. Both strategies are valid and have their own set of loyal customers.

It’s also crucial to consider the resource implications. Challenging a competitor’s strengths can be resource-intensive. Without adequate resources – be it capital, technology, or talent – the strategy can backfire.

Furthermore, if the market is moving towards a new trend or technology, it might be more prudent to focus on that rather than challenge existing strengths. Blockbuster’s focus on challenging Netflix in DVD-by-mail service came at the cost of ignoring the rising trend of online streaming.

Lastly, businesses should be wary of the “me too” trap. Merely replicating a competitor’s strengths without adding unique value can lead to a diluted brand image and reduced customer loyalty.

Question	Key Takeaway
Why is it essential to focus on a competitor’s strengths rather than weaknesses?	Challenging strengths can lead to sustainable competitive advantages and uncover unmet customer needs.
How can businesses identify genuine strengths versus perceived strengths in competitors?	Use methods like Customer Feedback Analysis, Third-party Reviews, Product Teardowns, and Market Share Analysis.
What are some effective strategies to counteract these identified strengths?	Strategies include Product Innovation, Service Enhancement, Rebranding, Strategic Alliances, and Cost Leadership.
How can businesses measure the success of attacking a competitor’s strengths?	Metrics include Market Share Growth, Brand Equity, CAC, Customer Feedback, and Financial Performance.
Are there any potential risks or pitfalls to be aware of?	Risks include Backlash, Misjudgment, Price Wars, and Legal Challenges.
Is it always advisable to attack a competitor’s strengths?	Not always. Consider factors like distinctive competencies, resource implications, market trends, and the risk of the “me too” trap.

FAQ

Why shouldn’t we always focus on a competitor’s weaknesses?

Focusing on weaknesses might give short-term advantages but doesn’t lead to long-term market dominance. Challenging strengths can redefine industry standards and elevate your brand’s image.

Can attacking strengths backfire?

Yes. If done without adequate research or resources, it can lead to backlash, eroded profits, or even legal challenges.

Is it costly to challenge a competitor’s strengths?

It can be, both in terms of finances and other resources. However, the potential rewards, in terms of market share and brand equity, can justify the investment.

How do we know if our strategies against competitor strengths are working?

Metrics such as market share growth, customer feedback, and financial performance can indicate the success of your strategies.

What’s the first step in this process?

Identify genuine strengths of competitors. This requires in-depth market research and understanding of customer preferences.