“Differentiation is the custodian of profits”

November 26, 2009 · Filed Under Business Ideas & TIps · 2 Comments 

On Monday night I was at an Australia Institute of Company Directors dinner where Don Meij CEO of Dominos Pizza was the presenter.Don impressed me with his passion and enthusiam for the business. Also he knew the numbers.  They put a lot of work into knowing what the consumer is likely to be eating next year and five years out. Through this investigation and knowing the numbers they are striving to make decisions with the best facts on hand. A great example of evidence based leadership rather than just relying on gut feel.

One of his slides was titled “Differentiation is the custodian of profits”.  This is a great statement. Whilst we have heard this before in different contexts or way it is something that is often forgotten or neglected in business. Domino’s are the market leader in Australia and still they are after differentiation. For any business who is not the market leader in their sector it is even more paramount.

If people are given nothing else to compare you on then they will compare you on price. How does your product or service differentiate you from your competitors. Remember the point of difference often is the little things that surround the core product or service.

Another interesting fact was that the internet is driving 28% of their business. Eighteen months ago it was under 5%.  Within that internet business though sales from the IPhone are responsible for 14%.  Dominos have an IPhone app which has only been out a short while and is driving this much business to them.

We need to be more even more conscious of how the internet is affecting our business. Also not just the internet on a desktop or laptop computer but the mobile market. If the IPhone is responsible for that level of business to Dominos at the moment where it grow to you.  Having these facts in front of you enables you to consider the future direction of the business.

For instance coffee shops, takeaway stores need to get onto the internet and also look at the IPhone application for their business. There are lots of other businesses that need to be mindful of this as well.

In all a great presentation and thought provoking.  How do you differentiate yourself? Have you the facts on where your market is going in the next 12 months or 5 years.

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