Episode 227: Interview with Krystal Parker
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About Krystal Parker:
Krystal Parker is a former executive for a Fortune 200 publicly traded oil and gas company. She has over 25 years of experience in organizational management, leading hundreds of union & non-union employees to provide J.D. Powers, award-winning customer service to more than 2.1 million customers across the U.S. A former college dropout, Parker advanced her education at Harvard Business School for senior executive leaders focusing on innovation, globalization, and leadership diversity. She earned an undergrad in psychology and a master’s in marketing. As a certified DISC behavioral specialist, trainer, speaker, and coach, Parker opened a boutique consulting company, Intent & Impact, to help companies increase profit, reduce turnover, and enhance employee engagement. An author and professor, Krystal teaches graduate and undergraduate level courses. She is also the president of the United States & Central Florida Christian Chamber of Commerce.
3 big ideas discussed in this episode:
- dichotomy of a successful business equal parts strategy/leadership
- You say it ain’t personal it’s just business but you believe people create the competitive advantage
- Why is it important to rehumanize the workforce? What does that mean and how does it spark innovation
Insights or Questions? Connect with us here: https://AskJeremyJones.com/group
- Website: intentandimpact.com
How to Build a Competitive Advantage in Your Business
The key to creating a competitive advantage in any business is to identify an area of strength and build a business around it. Without a doubt, you have things that make you unique and give you a competitive advantage in the marketplace. However, if you look closely, you’ll see that other businesses also have similar advantages. As a result, it’s crucial to understand what sets your business apart.
In this blog post, we’ll answer some of the most common questions about building a competitive advantage in your business. We’ll also share some actionable advice that can help you create a sustainable competitive advantage. Let’s get started.
What is a business’s competitive advantage?
A company’s competitive advantage is its unique selling proposition (USP). It’s what sets a business apart from its competitors and why customers choose to do business with it.
Unfortunately, creating a competitive advantage is a continuous process of evolution. Businesses that have a clear USP and work to maintain it will be more successful in the long run.
The advantage can be tangible, like better technology, or intangible, like a better customer experience.
However, to remain competitive, the advantage must be relevant to the marketplace. If a business tries to be all things to all people, it will end up being nothing to nobody.
What factors determine a company’s competitive advantage?
There are three factors that determine a company’s competitive advantage: the opportunity, the execution, and the state of the competitors.
The opportunity represents the specific factors in the marketplace that give your business an edge. These may include things like the changing needs of your customers, the growth of your industry, and new business models.
The state of the competitors represents the level of competition in your marketplace. It’s important to remember that even strong competitors fail to create a sustainable advantage. As long as your business remains strong, your advantage will remain intact.
The final factor is the execution of the advantages. It’s important to note that the execution determines the quality of the advantage, not the quantity.
How to build a competitive advantage in your business
There are five key areas we recommend evaluating to better understand your current competitive advantage and build a stronger one. These areas are product, people, process, partnerships, and place.
What about business revenue?
Businesses earn revenue by selling goods and services and earning the customer’s trust through quality service. Start by evaluating your revenue source. What percentage of your income comes from this source?
Next, examine your expenses. What percentage of your income are these expenses? This will give you an idea of how crucial it is to maintain profitability. If you’re not profitable, there’s no way to sustain a competitive advantage.
What are your profit margins?
Most business owners are concerned about how much to spend on salaries and benefits for their employees. However, the most important expense is the cost of goods sold (COGS). This is the price of the items you sell before all expenses are added, such as raw materials, labor, or overhead.
If your profit margins are thin and your costs are high, there’s no way to maintain profitability and create a competitive advantage.
What is your return on investment (ROI)
Every business sets out to achieve a specific goal. Some achieve this goal sooner than others. However, the measure of whether a business has succeeded is based on how long it takes to achieve the goal, not whether it actually achieved it.
The return on investment (ROI) is the amount of profit generated by a business relative to the amount invested in the business.
ROI is an excellent indicator of a business’s competitive advantage. The lower the better. This number can range from 4% to 50%.
What is your customer satisfaction rating?
All businesses want customers to feel satisfied with their purchases. This is a sign of positive word-of-mouth advertising. The higher the number, the better.
How do your customers perceive your brand?
Brands are created by putting a name and a face to a company. This face is made up of your company’s image, reputation, and customer service. The more your customers tip these three factors, the stronger your brand will be.
Businesses with strong brands tend to have higher customer satisfaction ratings, return on investment, and customer loyalty.
Strong brands are built through consistent customer experiences that build trust. This means creating a great customer service experience that answers customer questions and solves problems quickly.
Is your business consistent with your culture?
All businesses want to create a culture that’s consistent with who they are as a business. This is done through your values, mission, brand personality, and leadership behavior.
A company that mirrors these aspects will create a stronger culture and experience for customers. This will make them more likely to recommend your brand and continue doing business with you.
How does your business affect the community?
Businesses with a social responsibility are at an advantage. These companies serve a purpose beyond making money. This can include donations to charity, volunteering, or educational programs.
The more a business gives back to the community, the stronger its competitive advantage will be.
What will it take for your business to re-establish its competitive advantage?
To regain your competitive advantage, first you have to identify what caused it to disappear in the first place. Once you know the reason, you can take steps to prevent it from happening again.
What is your biggest weakness?
As a business owner, you’ve probably thought about your weaknesses before. Now is the time to be honest with yourself and your team.
What can you do to improve?
Everyone has weaknesses. The trick is to identify them and then use them as a strength. Once you’ve identified a way to improve, make sure you follow through.
What will it take to re-create the original competitive advantage?
To re-create the original competitive advantage, your business will have to work hard to overcome challenges and build upon its strengths. To do this, you’ll first have to identify your advantages and then work to maintain them.
How can your company better serve its customers?
Everyone wants a better customer service experience. It doesn’t matter if you’re the CEO or the cleaning lady, everyone wants better communication with customers.
The best way to improve customer service is to collaborate with your team members. When problems occur, discuss solutions as a team. This can save time and resources, and lead to a better solution.
Are you doing enough to stay ahead of the competition?
Competition can be healthy in the business world. It drives innovation and leads to the creation of new and better products. However, if a business is not keeping up with the times, it risks losing its competitive advantage.
To stay ahead, you have to be aware of your competition. This means looking beyond your industry and taking a regional, national, and sometimes even international, view of your competitors.
How do you measure the success of your company?
The only way to truly measure the success of a business is to look at how much it has grown and how much it has changed.
You can measure the success of your business in terms of profit, revenue, and the number of employees. However, these numbers only tell part of the story.
The ultimate measure of a company is how much difference it has made in the world. Only then will you know if you’ve created a lasting impact.
Creating a competitive advantage in any business is a journey of discovery. It’s an evolution process and an exercise in continuous improvement. The key to re-creating your competitive advantage is to ask yourself this question: What makes me different from my competitors? Once you’ve identified your competitors’ strengths and weaknesses, you can use these as opportunities to create a winning advantage for your business.
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