As we discussed three weeks ago, self -commoditization is a trap that many B2B companies fall into over the course of years of fending off competition and protecting sales volume. Suddenly, they look up from where their nose has been on the grindstone and find that lowest price is the only distinguishing feature that matters.This is a very serious situation for companies because it leads to a seemingly unending cycle of margin compression, which puts them in the downward spiral.
Fortunately, however, the cycle can be broken through the application of specific strategic adjustments to how the business looks at its products and services, and how it defines the customer’s experience.
For an excellent example of a company that faced this exact issue and successfully broke the cycle on a grand scale, take just a few moments to read our case study: “Life Sciences Division of a Major Corporation Successfully Reverses Self-Commoditization.”
In it you’ll discover how this $2 billion division of a major multinational had completed an acquisition spree only to find profit was being hacked along every product line. Through the application of ICS principles, the situation was resolved and the company is now experiencing a revolutionary level of relevance and identity in the marketplace, not to mention a solid profit margin that is sustainable.
For a more comprehensive treatment of the ICS principles involved, download the free white paper below: Integrated Commercial Strategy - The New Playbook for Profitable Growth.
