Your competence is defined as the singular strength or combination of strengths that you do better and will do better than anyone else in the geographic markets in which you compete. Your target markets are those that value your competence the most. Because they value your competence, they will give you more business and are often willing to pay more for it. They choose to do business with you because they cannot get what you provide at the same level from anyone else. Work to strengthen your competence by building your organization around it, creating the best mint chocolate chip ice cream in the marketplace.
Let me offer you an example: Herb Kohler, president and chairman of the Kohler Company, accomplished this when he turned a small Wisconsin town into one of the most famous golf destinations in the world. Kohler enlisted the talents of one of the top golf course designers, Pete Dye, to build a world-class golf course down the road from Kohler Company factory. Kohler’s pride and joy is the Straits Course at Whistling Straits, located on that lakeside property. Predictably, greens fees at the Straits are not for the faint of heart. In 2012- two years after the PGA Championship paid a visit- golfers could expect to pony up $350 to play eighteen holes, plus $60 for the required caddy and a recommended gratuity of $35.
If you’re wondering whether Whistling Straits provides enough differentiation to validate those prices, just try getting a tee time there and see how difficult if is to find an open spot.