Australian SMEs are bracing for increased competition. We’re already seeing a surge in new businesses, and that’s expected to continue into 2026. Successfully defending your market position isn’t about matching every move a new competitor makes; it’s about reinforcing what makes your business uniquely valuable to your customers. A proactive, positioning-focused strategy is essential.

Many businesses react to new entrants by dropping prices. While tempting, this often erodes profitability and starts a race to the bottom. Instead, we recommend focusing on strengthening your core market positioning. This means clearly defining – and consistently communicating – your point of difference. What specific customer need do you fulfil better than anyone else? This isn’t just about features; it’s about the overall experience and the value you deliver.

Here are a few key areas to analyse and optimise:

• Refine your value proposition: Don’t just state what you do, articulate *why* customers should choose you. Focus on the benefits, not just the features. Is it superior customer service, specialist expertise, local knowledge, or a unique product offering?
• Strengthen brand loyalty: New entrants struggle to overcome established trust. Invest in customer relationship management (CRM) and loyalty programs. Personalised communication and exclusive offers can significantly increase customer retention.
• Deepen market specialisation: Broad appeal is often vulnerable. Niche down and become the go-to expert for a specific segment. This makes you less directly comparable to generalist newcomers.
• Amplify your unique story: Customers connect with authenticity. Share your business’s history, values, and the people behind it. This builds emotional connections that competitors can’t easily replicate.

Don’t underestimate the power of a well-defined and consistently communicated positioning strategy. It’s not about being everything to everyone; it’s about being the best choice for *your* ideal customer. As we look towards 2027, businesses with a strong, differentiated position will be best placed to thrive.

The next step is a positioning workshop. We recommend conducting a thorough review of your current messaging, customer perceptions, and competitor analysis to identify opportunities to strengthen your market position. This will provide a solid foundation for a resilient and profitable future.