We tend to think that an excellent product and service offer will make us successful. This is neither true nor false. There is no doubt that an excellent market perception of our products and services will give us a strong competitive position. However, looking around for recent history we will understand this is not enough.
We all certainly know cases of companies that, while having superior products and services, have not been able to achieve a competitive advantage and the market ended up choosing the offer from competition. Those company executives wonder why. Without pretending to thoroughly analyze the causes here, we can find many reasons that influence the end results. They can be summarized in a single concept: “The market naturally selects the products and services that add most value”.
This statement, without being tautological, contains multiple aspects inherent to the company’s way to “reach” the market with an approach that lets the added value be so clearly “perceived” that our offer is finally chosen.
Which do you think are the strongest organizational design elements in your company to make the market, i.e. your clients, perceive your added value as superior? Conversely, which elements should be improved to change the market perception?
Do you agree that one of the elements that always improve the value-added perception is innovation? In which cases? And in your own case?