We’re familiar with the story about the three little pigs. The three pigs built their houses out of different materials: straw, sticks, and bricks. When the threat came (the big bad wolf), only the house made of bricks withstood his huffing and puffing. Here’s a twist on what we can learn about this tale adapted towards our business and how it relates to our various competitive edges.
Straw: You build a product, and seek to compete on price. However, when another competitor builds the exact same thing but sells it significantly less, it’s easy to get blown down.
Sticks: More durable than straw, and takes more effort to plan and execute. Competing on this level is like competing on performance: building a superior product rather than out-pricing the other guy. Still, others may outperform your product one day. This can get blown down too.
Bricks: Most durable material, but takes a long time to build, laying one brick at a time. This is like building genuine relationships. When threats come, it’s hard to blow down.
When price and performance are equal, the quality of the relationship will trump.