Strategy Fundamentals
I beileive there are 2 fundamental strategies in business, low cost and differentiation.
In E Marketing, both can apply. For example, Priceline.com is a low cost strategy. Amazon.com is a low cost strategy And Craigslist.com is the ultimate low cost strategy - its Free. All these E Marketing companies have essentially replaced their traditional competitors through a low cost strategy. How many of you use a travel agent, buy your books at a bookstore, or post want ads in the local paper anymore? And if you do, I'm guessing cost savings isn't a priority for you on that transaction.
Since these market leaders came on line and changed the game, competitors have emerged with almost identical cost structures. Orbitz.com competes against Priceline for example. Is there much of a difference between the two from a cost standpoint? EBay offers similar services as Amazon at similar prices. And there are other online advertising sites popping up, but so far none has been as effective as Craigslist. Why? I believe there is a strong first mover advantage that will continue to keep the other companies at bay...until a strategic differentiation occurs that can overcome this advantage.
When cost is the same, or in the case of Social Media there is no cost, differentiation is the only strategy left. If its free to be on Twitter, Facebook, LinkedIN, etc. how does a company even consider pricing as a strategy? The only way to compete on these networks is to differentiate yourself from the competition and stand out to potential customers. In social media marketing, differentiation is the only strategy.
So, what's your Social Media Strategy? How will you be different? I believe you have to find the Y for your business first, then you can begin to differentiate around your purpose. Why are you in business? What's important about success to you? What drives you everyday? What is your passion? Once you've defined your business Y, then you can start to differentiate yourself around this element. Stories about your Y. Competitions surrounding your Y. Testimonials from clients experience your Y are all ways to strategically differentiate yourself using Social Media.
If you need help identifiying your business and Social Media Y, we're here to help.