Market Research and Competitive Strategy
Smart businesses use market orientation - focusing on what customers actually want rather than just creating products they think are brilliant (product orientation). Market research is your toolkit here: primary research gets fresh data directly from customers, whilst secondary research uses existing information online or from reports.
Market segmentation splits potential customers into groups - by gender, income, lifestyle, or location. This helps businesses tailor their approach rather than using a one-size-fits-all strategy. Market mapping takes this further by plotting competitors on charts (like price vs quality) to spot gaps in the market.
Competitive advantage comes from either being the cheapest (cost leadership) or being uniquely different (differentiation). Porter's generic strategy shows you can apply these approaches to both mass and niche markets - think Primark's low costs versus Apple's premium differentiation.
Adding value through superior design, quality, customer service, or faster delivery times keeps customers loyal and justifies higher prices. Economies of scale help larger businesses reduce costs as they grow bigger.
Remember: The best market position is one where you're either clearly the cheapest option or offer something competitors simply can't match.