In the early days of professionalized corporate management, leaders discovered that minimum efficient scale was a key determinant of competitive success. Successful businesses normally have one thing in common: they set themselves apart from their competition to become the premier choice for consumers. By promoting lower prices, along with knowledgeable and encouraging personal trainers, you have given potential customers a reason to choose your facility over the one down the street. One big challenge is the fact that the mountains of data many companies are amassing often lurk in departmental “silos,” such as R&D, engineering, manufacturing, or service operations—impeding timely exploitation. All companies need to take Big Data and its potential to create value seriously if they want to compete. This effort represents a significant source of inefficiency. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. Hunting and fitness may not be too closely related, but this analogy isn’t all that far-fetched. The answer is that you gain a competitive advantage. The ease of use saves time and money for your business and the results you will deliver to your clients will keep them coming back and lead to growth. Big Data can be used to develop the next generation of products and services. In most industries, existing competitors and new entrants alike will use the strategies resulting from the analyzed data to compete, innovate and capture value. James Baker Duly Posted On July 17, 2020 0. But achieving this boost in productivity will require the combination of data from different sources  – often from organizations that have no history of sharing data at scale. Leading innovators are ultimately leveraging data to disrupt new markets and gain a competitive advantage through strategic data management innovations, including consolidating data onto a single platform, deploying intelligent policy engines, automating workflows, and deploying applications and policies to simplify data governance, IDC states. Moreover, product and service standardization lies in the cornerstone of McDonalds business strategy. On the other hand, if your business vision is closely aligned to your competitors and you are unable to find something different to offer, your focus shifts. For instance, users of services enabled by personal-location data can capture $600bn in consumer surplus. All rights reserved. Competitive advantage grows fundamentally from the value a firm is able to create to their customers. Opportunities and threats, on the other hand, are external factors. Be sure to track the metrics and use the data available to you from these posts to create the right kind of content and continue offering the correct products and services. Even though you are offering a discount, your business still benefits from the added spotlight put on additional services that the same customer would not use otherwise. Dan Chojnacki is a writer for Exercise.com and a personal trainer in Green Bay, WI. These are all areas in which you can gain a potential competitive advantage. Here are five fail-proof ways to gain a competitive advantage … Sets of data such as patient records and clinical claims would have to be integrated. The use of Big Data is becoming common these days by the companies to outperform their peers. Data, and more important, data analysis, have become a true competitive advantage for a variety of industries and businesses, not just the Facebooks, Amazons, and Googles of the world. Those companies are protected by significant barriers to entry because of the economies of scale involved in acquiring and structuring huge amounts of data, but their business models don’t involve gleaning data from customers and mining it to understan… Finally, project managers and PMO directors should pay attention to their processes and look for ways to improve them. Researchers can model the impact of variations in menus, restaurant designs, and training, among other things, on productivity and sales. One of the key ways that companies stay competitive is by keeping tabs on data about their clients and the market in general. That information is analyzed by clusters of computers, which feed their results to real-time operations centers that adjust oil flows to optimize production and minimize downtimes. More integrated data platforms now allow companies and their supply chain partners to collaborate during the design phase—a crucial determinant of final manufacturing costs. For example, if the data show that most turnover is from new hires, … D. managers are forced to make choices regarding what to do and what not to do. These are all extremely important success factors; but what matters, even more, is the identity of the brand. Consider the following car companies. Companies are able to express their identity with logos at the front and center of these apps which helps draw in customers and generate sales. You will either identify things you are already doing well to meet consumer needs and differentiate from your competition or find out what you need to change to make it happen. This constitutes the core of Alphabet business strategy (Google business strategy). As a long-term asset, this expectation extends beyond one year. Global Presence: One major source of competitive advantage for McD is its extensive global presence. Data mining provides a competitive advantage Any business that doesn’t use business intelligence today will fall behind in this tough, competitive business environment. Cost and pricing data are becoming more accessible across a spectrum of industries. Connecting with your target audience is important but making sure you are connecting with them in a way that will turn them into customers deserves more emphasis. Paying for this ad space can provide an advantage for your business because they are not contained only to your followers. It is smart for any business, including those in the fitness industry, to conduct a S.W.O.T. Instead, you want your business to be the reason for a client’s success even when they are not working with one of your personal trainers. All of this information can help you decide what type of content is most effective for you to post. 4. A brand can create a competitive advantage if it is clear about these three determinants: 1. How do I differentiate my business from my competitors? Through implementing big data analytics businesses can achieve competitive advantage, reduced the cost of operation and drive customer retention. Knowledge management is essential for businesses to gain a competitive advantage. This tsunami of information is a real challenge at every level in society. 2. It is very straight-forward to post text, videos,  poll questions, or even live videos to interact with your customers. If your gym offers an identical group fitness line-up to the facility down the street, there is nothing that will convince a potential customer, at first glance, to choose you over your competitor. Leverage can change your life and business, but only if you take full advantage of it. One major oil company has cut operating and staffing costs by 10 to 25 percent, while increasing production by 5 percent. At some manufacturers, for example, algorithms analyze sensor data from production lines, creating self-regulating processes that cut waste, avoid costly (and sometimes dangerous) human interventions, and ultimately lift output. For example, some retailers embracing big data see the potential to increase their operating margins by 60 per cent. Shares. This means being able to identify offerings that have been sustained in the industry for years, as well as trends that are new or up and coming in the fitness industry. 5 Steps for How to Better Manage Your Data Businesses today store 2.2 zettabytes of data, according to a new report by Symantec, and that total is growing at a rapid clip. Competitive advantage may be the single factor to attaining success and business sustainability. Gaining competitive advantage is key to increasing a business' market share and ultimately profits, but what is competitive advantage and how does it apply to today's globalized economy? Our passion is to empower fitness businesses to think big when it comes to growing their business. Data are now woven into every sector and function in the global economy, and, like other essential factors of production such as hard assets and human capital, much of modern economic activity simply could not take place without them. In the developed economies of Europe, government administrators could create more than €100bn ($123bn) in operational efficiency improvements alone by using Big Data – and that’s not including employing advanced analytic tools to reduce fraud and errors and boost the collection of tax revenues. Editorial Guidelines: The Editorial Team at Exercise.com is dedicated to providing fair, unbiased information about the fitness industry. Those who follow the page are able to see the post, react, and plan their schedules based around its content. Gaining the competitive advantage isn’t easy and chaos is almost guaranteed, but the upside outweighs the tough times. By Gordon Tredgold, Founder and CEO, Leadership Principles @gordontredgold. It seems fairly obvious that knowledge of your target market (in this case, fitness enthusiasts) is important for business success. So, what happens when you take the six tips above and apply them to your business model? Facebook and Instagram, for example, offer a wide variety of benefits for fitness business at any stage of development. Our partners do not influence our content. In the majority of industries, both existing as well as new establishments will implement strategies based on big data analytics in order to stay competitive, innovate, grow and seize value. Maximizing your human capital is a major contributor to achieving a competitive … Get the Basics... But other sectors, too, can benefit from new applications of data, along with the growing sophistication of analytical tools for dividing customers into more revealing microsegments. Such knoiwledge then informs the creation of  new service offerings and the design of future products. Now the company aggregates shop-floor and supply-chain data for a number of manufacturing customers and sells software tools to improve their performance. Think about strategic management as being a vehicle that helps drive you to your goal of gaining a competitive advantage in the marketplace. There is an important distinction between a business’s brand and its identity. The data gathered from your website and social media platforms can tell you a lot about your customers. After all, your competitive advantage is, by definition, something your competitors do not have. Porsche 2. Knowing what types of posts people respond to will help you build your following, but will also give you an idea of which areas to focus your business on as it grows. Another swipe at proprietary information is the assembly by some companies of readily available satellite imagery that, when processed and analyzed, contains clues about competitors’ physical facilities. If you are looking for a high-performance sports car you probably won’t go to a Ford dealer. Volvo 3. Competitive advantage Real competitive advantage implies companies are able to satisfy customer needs more effectively than their competitors. In a competitive environment, businesses try to stand out from their competitors. If your fitness business offers multiple services, you may benefit from the product offered by Exercise.com. In effect, experimentation can help managers distinguish causation from mere correlation, thus reducing the variability of outcomes while improving financial and product performance. In other words, they have a competitive advantage. Comparison shopping should be easy. For example, ‘nowcasting,’ the ability to estimate metrics such as consumer confidence, immediately, something which previously could only be done retrospectively, is becoming more extensively used, adding considerable power to prediction. 1. Share your experience and thoughts with me in the comment section. Many observers, including the authors of this article, believe that Big Data is the new, new thing that will see some companies leapfrog others to become best in class. Data, and more important, data analysis, have become a true competitive advantage for a variety of industries and businesses, not just the Facebooks, Amazons, and Googles of the world. Sure, ads in newspapers, magazines, and on billboards can still be effectively utilized (although placing your logo on the disposable placemats at your local diner is questionable), but there are certainly more options. Some manufacturers are attempting to pry open these departmental enclaves: they are integrating data from multiple systems, inviting collaboration among formerly walled-off functional units, and even seeking information from external suppliers and customers to co-create products. Switching Costs. The images, products, services, and reputation put forth by a business make up the DNA of the brand. Acquiring both requires a significant expense and effort. By 2020, more than 70 percent of mobile phones are expected to have a GPS capability, up from 20 percent in 2010. Conclusion: Big Data-A Competitive Advantage for Businesses The use of Big Data is becoming common these days by the companies to outperform their peers. In short, your logo is your brand’s identity. They will then be able to recognize when customers are nearing a purchase decision and nudge the transaction to completion by bundling preferred products, offered with reward program benefits. Get your business a data analytic tools like Power BI, Tableau to do your data and business analysis. Having a competitive advantage is the key to business success in the fitness industry. These include advanced NoSQL databases, data virtualization, and distributed storage along with many software tools that predict the most useful data. McDonald’s, for example, has equipped some stores with devices that gather operational data as they track customer interactions, traffic in stores, and ordering patterns. You have just identified two ways to gain a competitive advantage. Above are the top 5 ways your business can use technology to gain competitive advantage. The way that big data is utilised forms an essential competitive advantage for many companies to stay competitive. For example, let’s say you are a personal training studio that offers fitness assessments for $25, training sessions for $60, and smoothies for $5. They set themselves apart from their competitors by bundling major services offered by fitness businesses into one easy-to-use software product. Having an understanding of what makes them successful, what has not worked for them, and the direction they are heading will help you to know how to differentiate. You also, in many cases, still come out ahead from a monetary standpoint because you are trading time for extra revenue. The same preconditions that allowed previous waves of IT-enabled innovation to power productivity, i.e., technology innovations followed by the adoption of complementary management innovations,  are in place for Big Data, and we expect suppliers of Big Data technology and advanced analytic capabilities to have at least as much ongoing impact on productivity as suppliers of other kinds of technology. Instead, set your business apart by offering something that is not available anywhere else in the local market. If that client can track their progress, measure results, and work out even when they aren’t with a trainer, they are far more likely to continue with your business. Copyright © 2000-2020 | Exercise.com | 15310 Amberly Dr Suite 250, Tampa, FL 33647 | Privacy Policy | Terms & Conditions | CCPAPlease consult a physician before beginning any diet plan, supplement regimen, or workout plan. Nearly everything can be considered as competitive edge, e.g. From there, make a point to know all aspects of the market including competition, consumer, and yourself. By utilizing the fitness business software provided by Exercise.com, you can easily keep track of membership, sales, personal training, group fitness classes, and much more all in one place. Of course, if you want your post to appeal to a more specific target audience, these social media giants offer the chance for your post or ad to appear before a more specific group, for a small fee. In advanced-manufacturing sectors such as automotive, for example, suppliers from around the world make thousands of components. Trying to build a fitness business without knowing what the consumer is looking for is like going hunting with a blindfold. Big Data permits a major step beyond what until recently was considered state of the art, by making real-time personalization possible. It can come in a variety of forms but there should be some aspect of your business that is a unique offering among your competitors. It highlights the benefits a customer receives when they do business with you. Michael Chui is a principal at the McKinsey Global Institute in San Francisco. Simply making the data available spurred lagging workers to improve their performance. Once you have your logo nailed down, it is important to make sure it is visible to the consumer. It is less likely that a client will pay $90 to purchase all three items a la carte on a consistent basis. A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and service that justify similar, or possibly higher, prices. Ultimately, making use of large digital datasets will require the assembly of a technology stack from storage and computing through analytical and visualisation software applications. Since most organizations have a strong online presence, data has become a modern form of currency that dictates trends and makes or breaks a business. Researching the industry and applying it to your local market will help accomplish this. That competitive advantage then creates a growing customer base, improved customer loyalty and an increasing … Competitive advantage comes from capitalizing on uniqueness. An array of technologies has come together to make real-time analytics possible for companies both big and small. Data that can be purchased from aggregators may not in and of itself yield sustainable competitive advantage since others may have access to this data, too. Everything that has to do with a business constitutes its brand. MGI estimates that if U.S. healthcare fully used all the available techniques that can be enabled by Big Data, such as analyzing records of real-world medical treatments, their costs and health outcomes to guide physicians on which treatments provide the best outcomes at the best cost, the annual productivity of the sector could grow by an additional 0.7 per cent. Big data expands the possible domains of application for algorithms and machine-mediated analysis. Customers profit both from using multiple services to reach their goals and from the lower price point that the packages carry. Customer service, knowledgable employees, first-class equipment, and high-end facilities can all differentiate a business, even while offering the same products or services as its competitors. Alphabet (Google) business strategy is based on the following three elements: 1. Business diversification and introduction of new products and services in a regular manner. Sensitivities around privacy and data security are just one hurdle that companies and governments need to overcome if the economic benefits of big data are to be realised. But it’s not just companies and organisations that stand to gain from the value that Big Data can create. One of the key ways that companies stay competitive is by keeping tabs on data about their clients and the market in general. 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