It’s a frustrating reality for Australian SMEs: you invest in building a unique position in the market, and competitors inevitably copy your successful strategies. This ‘differentiation erosion’ doesn’t have to derail your growth. It simply means it’s time to refine your positioning, not abandon it. We see this happen frequently, and a proactive approach is key.
The initial reaction is often defensiveness – highlighting *why* your version is better. While important for sales teams, this isn’t a long-term positioning strategy. Customers don’t reward incremental improvements on a copied idea; they seek genuine evolution. Instead, focus on moving the goalposts. Here’s how we advise clients to approach this:
- Deepen the Differentiation: Your original point of difference likely tapped into a core customer need. Now, explore how you can deliver on that need more comprehensively. This isn’t about adding features; it’s about enhancing the *experience* around your offering. Think about bundling complementary services, building a stronger community, or providing more personalised support.
- Vertical Integration: Control more of the value chain. If competitors copied your product, can you control the supply of a key component? Or perhaps offer a related service they don’t? This creates a new, harder-to-copy advantage.
- Target a Niche Within Your Niche: Refine your ideal customer profile. Identify a specific segment within your existing market that is underserved, and tailor your messaging and offerings to their unique needs. This ‘hyper-targeting’ can create a strong, defensible position.
- Future-Pace Your Positioning: Where is the market heading? Anticipate future customer needs and position yourself as the leader in that emerging space. This requires market research and a willingness to innovate beyond your current offering. Looking ahead to 2027, customer expectations around personalisation and seamless experiences will only intensify.
Remember, positioning isn’t a one-time exercise. It’s a continuous process of assessment and adaptation. Competitor imitation is a signal – a validation of your initial insight. It’s also a catalyst for innovation. Don’t get stuck defending yesterday’s advantage; focus on building tomorrow’s.
The next step is to conduct a thorough market analysis to identify emerging trends and unmet customer needs. This will inform your repositioning strategy and ensure you stay ahead of the competition. We recommend starting with customer interviews and a competitive audit.
