27 October 2018

Differentiation and added value: The secret that turns SMEs into large companies


I guess part of the readers will be thinking “Normal, it’s a great company you can afford to achieve new markets, grow, etc …” but I wonder why we think so or why you think that.

Our environment is made up of small and medium-sized companies, they generate the most jobs, they generate the most wealth and they generate the most innovation; in my experience as a consultant I have found companies that develop and design new products that make them an engineer friend, with companies (less than 10 workers) that have a product with superior quality to their competitors (with 127 workers) and examples of this I meet every day. And at the end of so much effort they do not achieve their goals.

What is the difference of these companies with difference to (Pepsi)? Well, the last one plans and studies the market and sees what are the opportunities that are presented for the end to achieve the objectives. SMEs can also do the same and do not need to spend a fortune in large market research or to know trends. SMEs have a great advantage that the big ones do not have and it is the direct contact that they have with their clients and that one-to-one language that the big ones have trouble getting.

Starting from this advantage what SMEs forget is to ask their clients what they do right or wrong, what products or services they demand or need, what are the improvements that our products or services need, etc. With this small market study, the next step is to do what the big ones do, study the data and plan to achieve the objectives.

Now some will say, “I can do the above but if I wanted to grow I need big investments”, why everything is arranged with money ?. Another element to take into account that SMEs are flexible and imagination are not missing, why not consider growth by collaborating with other companies similar to yours in other cities, provinces or regions. The large companies do it to establish themselves in other countries and the formula works for them; it can be transferred to smaller levels, at the SME level; normally two or three row farther than one.

These marketing actions are simple and affordable for any SME, the problem with which I find myself on a daily basis is that SMEs consider that marketing is expensive, that it only focuses on communication actions and that it is only for large companies; all large or medium companies before has been small and what has made them grow are the differences (added value) and this is what they forget, if you do not look for that difference you are one more in the market.