How a Little 'Friction' Can Change a Competitive Landscape

For a business, losing a customer can feel a little like getting dumped. Questions linger: What did I do wrong? What does that other business have that I don't? How can I ever compete in such a cutthroat market? Well, maybe you do have too many competitors. Maybe thereis something you need to improve. Or maybe the customer simply has personal preferences that are not met by your business.

A recent research paper by Wharton management professor Olivier Chatain and INSEAD strategy professor Peter Zemsky offers some perspective on this topic by combining two types of business strategy analysis. Their advice: When developing business strategies, consider not just what your company does, but how it fits into its industry. Looking at both, you might find ways to improve and woo more customers. You might realize an opportunity to leapfrog over a bigger competitor. Or you might discover that your approach to the market is fine the way it is.

To read the full article please click on the link above. Great information in this competitive landscape.