Gaining a Competitive Advantage
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No organization is perfect. We must all recognize there are things we do well and some things we may need to improve upon. It is important to recognize both, and if we can accomplish that task, we set ourselves on the path to gaining a competitive advantage in our markets.
To develop a clear understanding of our strengths and weaknesses requires a systematic process based on objective analysis, with the key word being objective. Often that is difficult to accomplish, because we naturally want to think we are on the right path, but in reality we may need substantial improvement to reach our full potential. It is kind of like the mother who thinks her son is a really good singer, but in reality he is anything but good.
We must overcome this tendency and really gain a clear picture of what our target population feels about how we conduct our business. We need to know how we are perceived in the marketplace from their (not our) perspective. Are we seen as the first-line provider in our market, or are we somewhere back in the pack? |
Identifying Strengths and Weaknesses
Our focus here is on several things:
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Resources - what resources do we bring to the table to serve the needs of our target markets? I have seen many independent opticians sit and wonder what happened (myself included) when the typical referrals from ophthalmologists dried up many years ago with the advent of co-management. If you do not compete favorably with other providers in your market, you must try to find some niche to fill that allows you to maximize your resources. Few seem to grasp this concept well.
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Competencies - are we up to date with the current trends in the field? I often hear supposed experts discuss the ills of new development in the industry. “By golly,” they say, “those new-fangled things are not nearly as good as my old school technology.” If Henry Ford felt the way many of our “experts” do, then we would all be driving horses and buggies. Embracing new technology and modes of practice are important in the turbulent eye care marketplace, and we must develop the competencies to provide those products or services.
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Capabilities - do we have the capability within the organization to successfully compete? Are we capable of delivering excellent products and services that allow us to stand out in the marketplace? There are a million questions regarding our capabilities, and simply we must understand what our parameters for success are, and remain within the limitations of those parameters. For example, don’t promise things you may not be able to deliver on time. It is better to over-achieve than under-achieve.
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Context - all the above items, our capabilities, our competencies and our resources must be matched with the market we serve. If we provide things not valued, then we will not succeed no matter what. We must fit contextually within the marketplace.
Evaluating Competitive Relevance
Our organizational strengths must be measured according to several things. First, do we provide value? I read a US Air magazine on a long flight some years back and saw a quote that stuck with me. It said that people who fly on airplanes are more concerned about a safe flight than a cheap fare. As a very frequent flyer, I can attest to the truth of that statement.
The second component of our market relevance is one that concerns me. Often we all sell the same or similar products and offer the same or very similar services. This second component is “rareness.” How many of our competitors provide exactly the same services and sell the same frames we do? You must find something that only you bring to the table. That is not just product related, and it may be excellence in service, but it must be something.
The third is termed imitability. Can we be imitated? In our case, it is often simple to build an office that looks similar to all the others. What do you bring to the table that makes it difficult for you to be imitated? It can be a number of things, including your sparkling personality, but patients and customers still want to make certain they are receiving maximum value for what they are getting!
Finally, we come to sustainability. Often we see great horses come out of the shoot with tremendous speed, but quickly sputter. When you achieve a certain level of excellence, you must be able to sustain it to continue to meet the needs of your established patient base. It is easy to lose a patient if we do not maintain the level of service that they have come to expect.
The Value Chain
As is probably evident to you by now, I place great emphasis on value. Often we focus on price, which may be a mistake. Patients want their health care provider to be a good value, not necessarily the cheapest available. Think about it, would you go to the “cheapest” surgeon? Of course not! Now think about where you fit on the “value chain” in your market?
There are several components of the “value chain” you should consider. First are the pre- and point-of-sale activities. When someone enters your office are they greeted immediately by a friendly person who appears to appreciate them? During the visit, are the services provided in an efficient manner, or did they have to wait excessively? This component of the chain should include marketing activities that brought them in. If you offered a special, was it available? The service aspect provides value to your patients.
Second are the after-service activities. Are they checked out effectively and efficiently? Do you bill them and/or their insurance provider quickly and correctly? Did you use the opportunity to market to their family members or offer additional services to the patient? Many times they will not be aware of additional services if you do not inform them, and right after a successful visit is a great time to place a new idea in their mind. In the optical world, the after-service activities such as frame adjustment can be as important as the initial point-of-service activities.
Third are our support services. Did the lab get the job out on time? Did the techs appropriately handle the patient during the visit? There are a number of support issues that provide the important support mechanisms that can make us or break us.
In larger organizations we also would discuss organizational structure and other strategic resources such as IT and human resource functions, but this article is directed towards the smaller independent, and we will eliminate those for the purposes of the intended target audience.
I hope we all better understand the importance of value, and a bit more at this point about how to evaluate our strengths and weaknesses. Next month we look at our relationship with our environment. We will develop an understanding of external analysis, and combined with the internal view gain a clearer understanding of how to gain that competitive advantage we all seek.
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