What is the firm’s Customer Value Proposition? How does it differ from its largest peers? Is there a concern that numerous firms make similar CVP claims, and if so, is it difficult for customers to discern who really possesses that CVP?
In many industries, firms claim to solve the same problem, albeit with very different solutions. As a general manager, you’ve likely heard the same overall claim time and time again. A firm which differentiates its claim in a meaningful way is miles ahead of competitors.
As an example, as an angel investor I once did a due diligence on a farm pesticide company. Its claim was that it increased farm yield ROI. As do over 300 competitors. When pointing this out to the founders, they got defensive and basically argued they were right. I didn’t invest. The issue is simple—if farmers hear from 300 vendors that their pesticide increases farm yield ROI, how can they differentiate among the 300?
One eventual recommendation is how to explain to customers how the client’s solution differs in an easy to grasp method.
Based on information in the annual reports or published on the firm’s website, summarize what the firm views as the reason for its successes (either past or expected in the future). Search for both quantitative and qualitative success factors provided in the report.
Does the firm seem most focused on the economic, accounting, or shareholder perspective of its competitive advantage? Give quotes or information from these sources to support your view.
Many firms are not including annual corporate social responsibility (CSR) reports on their websites. See whether your firm does so. If it does not, are there other indications of a triple-bottom line approach, including social and ecological elements, in the firm’s strategy?
