Sensible managers focus primarily on their own success, not on creating failure for their competitors. Despite intense competition in business, one can win without destroying, or even harming, the competitor. The important thing is to focus on your own success. This demands confidence, not bravado, astute analysis instead of raw aggression, and careful, empathetic focus on the other players in the marketplace. This is perhaps most true in pricing, a particularly vexing challenge in today's hypercompetitive marketplace.
Major customers exert enormous pressure to force suppliers to cut prices.
The consolidation of purchases and purchasers adds to the pressure. And competitors, in an attempt to gain share or position, often destroy the profitability of whole markets. But with careful thought and precise execution, managers can be price makers, not price takers. There are seven steps to becoming a price maker. Create customer value.