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The Four Models of Competitive Strategy

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Austin Okere, Founder of CWG Plc
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Austin Okere is a known voice in the Nigerian IT industry. In this piece on his LinkedIn page, the Founder of CWG Plc, shares ‘The Four Models of Competitive Strategy’.

About a week ago I had a poser on my social media that drew numerous contending views. It was regarding positioning with the lowest price as the main competitive differentiator, suggesting that it was a race to zero.

I promised to follow up with a full article on competitive strategy to address the questions raised. This is in fulfilment of that promise.

I see four clear and distinct models for competitive strategy as follows:

Technology Leadership
This strategy is mostly adopted by companies who have captured a major leadership advantage on the innovation curve. The leadership position they hold in their niche market is very significant, to the extent that competitors’ chance of replicating or catching up is very distant.
Companies such as Apple, Alphabet, Alibaba, Ant Financial, Jumia across Africa, Space X, Solar City and Tesla among others.
They typically charge a premium for their products and services, enabling them to spend more on further research and investing in the best skills, thereby reinforcing their technology leadership and sustaining their success cycle.

Service Excellence
This strategy is mostly adopted by companies who are not necessarily technology leaders but use their superior delivery and customer support ability as a means of winning customer patronage and sustaining loyalty.
Companies such as REI who will replace your boots even after three years after purchase, Amazon with their top-notch delivery and support service coupled with a wealth of products at competitive prices, Nordstrom with their lax return policy and short check-out lines, Apple with their user friendly devices and seamless in-store customer journey with the help of ‘geniuses’, and where check-out lines literally do not exist.
GTBank in Nigeria making retail banking very easy for customers through their GT World online and mobile Application.

Customer Intimacy
This strategy is mostly used by companies who make you feel like a ‘part of the family’. They cultivate a familiarity with their clientele and tend to be on first name basis with them. They tend to know when your first child has gone away to college, and when there is a new addition to the family.
They typically will be the neighbourhood corner shop. They have provided products and services to your parents and grandparents.
They tend to do grocery shopping and delivery to busy working mothers. Larger companies who use this strategy tend to have long retainer-ships with their customers, which are rarely put out for re-bids. They know and understand their customers and bear their idiosyncrasies, while the customers reciprocate with loyalty

Price Leadership
This strategy is mostly adopted by companies who have had a long early lead on a product development and launch, and have ‘deeply milked’ the gains of their investments. They then use low prices to deter competition from entering the market.
An example would be Coca-Cola. Other companies that may use this strategy are the ones who have copied the intellectual property of more advanced competitors and have not incurred the cost and pain of research.
Having inadvertently benefitted from a product development cost bonanza, are happy to price it relatively low to attract patronage.
More often than not, these copy products are of inferior quality to the original, making the very low prices possible. Companies in this category tend to be in developing markets such as China where the rule of law is not as mature as the developed world.

China and the Lesson of Cost
To be said for China, they have used this strategy to great advantage, and are beginning to develop the local intellectual property as well.
Other companies that may use low prices to attract patronage are the ones who have committed significant investment to establish elaborate infrastructure, such as telecom companies with their network infrastructure.
The infrastructure being considered sunk costs, services running on them such as data and voice are priced with very low and sometimes negative margins because any additional revenue is considered contribution margin.
They will rather take the customer at any cost rather than allow their competitor to benefit from a lost sale.
My company CWG Plc, is working with some of the telecom companies to a have an underlining valuable service such as a mobile based Accounting/Inventory system to customer segments such as SMEs to reduce churn and induce loyalty rather than just dropping prices to less than the competition.
In this regard, Safaricom in Kenya have used the MPESA mobile banking Application to great effect.

Putting All Together
While I do not begrudge any company their dominant competitive strategy, I do have deep reservations about using cheaper pricing as the sole competitive strategy.
The reason for that is not far-fetched; it does not encourage research to improve the product nor additional investment to improve service and scale.
It very quickly degenerates into a rat race because there is always ‘cheaper than cheap’. Ultimately the winner of a rat race is still a rat.

Austin Okere is the Founder of CWG Plc & Entrepreneur in Residence at CBS, New York. Austin also serves on the World Economic Forum Global Agenda Council on Innovation and Intrapreneurship and on the Advisory Board of the Global Business School Network based in Washington DC.

 

 


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E-Business

NDPC Commits to Balancing Data Privacy, Protection Information

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Nigerian Data Protection Commission (NDPC), has expressed its commitment to balance information around data privacy and protection.

NDPC Commits to Balancing Data Privacy, Protection Information

Dr. Vincent Olatunji, national commissioner, NDPC, stated this in Abuja, at the National Data Privacy Summit with the theme, “Privacy in the Era of Emerging Technologies,” organised by the commission.

Olatunji said the NDPC, at the moment, was looking at balancing information around data privacy and protection.

“What we are doing is just to look at how to balance information around privacy and protection, which is really important, because as we are innovating, at the same time, we have to consider issues around privacy and protection,” he stated.

He added that the commission has been very bold in taking risks that would bring about growth.

“Our starting point is growing at a very alarming rate, and we are not afraid of anything. We can take risks. And that is why a lot is happening in Nigeria, and this is the level of clarity,” he explained.

In his address, Dr. Aminu Maida, executive vice chairman (EVC) of the Nigerian Communications Commission (NCC),  stated that Internet of Things holds promise for Nigeria’s economy.

The EVC, who was represented by Abraham Oshadami, executive commissioner, Technical Services (ECTS), noted that, “in an era in which digital assets, Internet of Things, future digital computing and other transformative technologies are key, and both a cornerstone of building trust for the adoption and a prerequisite for sustainable progress.

“Emerging technologies hold immense promise for Nigeria’s grand economy, but they also introduce complex risks to personal and individual rights.

“So, balancing innovation through post-ethical safeguards and public trust is the first step to ensuring that global digital advancement benefits all Nigerians without compromising their privacy or their security,” he added.

“As we just heard from the Nigeria Police, telecom operators have a vast amount of sensitive historical information daily, including connectivity apps and collaboration on privacy, security, and number protection, both to their and their inheritors,” he said.

Dr. Bako Shurkuk, commissioner for Science, Technology and Innovation, Plateau State, who represented Caleb Mutfwang, Governor of Plateau State, said, emerging technologies can be harnessed to attain sustainable growth.

 


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OADC Lagos Reinforces Commitment to Local Data Hosting and Digital Transformation @ NDPC’s National Privacy Week Summit

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Open Access Data Centres (OADC) Lagos has reaffirmed its commitment to Nigeria’s data protection and digital transformation agenda through its sponsorship and active participation in the Nigeria Data Protection Commission’s (NDPC) National Privacy Week Summit.

The National Privacy Week Summit, organised by the NDPC, convened policymakers, regulators, technology providers, and industry stakeholders to promote data privacy awareness, strengthen compliance with the Nigeria Data Protection Act (NDPA), and advance conversations around data security, sovereignty, and responsible data governance.

As a sponsor of the event, OADC Lagos demonstrated its continued support for the Federal Government’s drive toward local data hosting and data domiciliation, which are increasingly critical to safeguarding sensitive information, enhancing regulatory compliance, and building trust in Nigeria’s digital economy.

Through its carrier-neutral, Tier III Design certified data centre in Lekki, Lagos, OADC provides secure, resilient, and compliant infrastructure that enables government institutions and private sector organisations to host and manage data locally while meeting international best practices.

Commenting on the engagement, Adesola Adesugba, Country Marketing Manager, Open Access Data Centres Nigeria, said: “We are proud to have supported the Nigeria Data Protection Commission through the National Privacy Week Summit and to stand alongside the government in advancing Nigeria’s digital transformation objectives.

“Strengthening local data hosting and domiciliation is fundamental to national data sovereignty, improved security, and sustainable digital growth, and OADC Lagos remains committed to enabling this future.”

OADC’s participation at National Privacy Week Summit underscores its role as a trusted digital infrastructure partner to government and enterprise, supporting secure cloud connectivity, regulatory compliance, and the long-term development of Nigeria’s digital ecosystem.

Open Access Data Centres is part of the WIOCC Group and operates open-access, world-class data centres across Africa, serving cloud providers, network operators, enterprises, and public sector institutions.


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Kaspersky Launches OT Calculator to Align Cybersecurity Investments with Business Goals

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Kaspersky’s new online tool has been specially developed for industrial organisations to assess the potential costs associated with insufficient operational technology (OT) security.

By offering detailed financial forecasts, the calculator empowers senior management to make well-informed decisions regarding security investments.

Industrial organisations increasingly depend on interconnected systems, elevating cybersecurity to a critical factor in business resilience and profitability.

According to VDC Research, over 60% of industrial companies last year reported that cybersecurity breaches had led to significant costs. Despite this, a persistent disconnect remains between security teams and executive leadership as security professionals focus on minimising risk, while executives must balance cybersecurity concerns with broader business objectives. This misalignment often results in competing priorities and underfunded security initiatives.

To bridge this gap, Kaspersky has launched the OT Cybersecurity Savings Calculator, an innovative online tool designed specifically for industrial organisations to assess the potential costs of inadequate operational technology (OT) security¹.

The primary aim of this tool is to translate cyber risks into tangible financial metrics and support strategic discussions around priorities and budget allocation. By entering details such as their sector, sub-sector, region, company size, breach history, and existing cybersecurity measures, organisations can estimate their potential cost savings and receive customised, actionable recommendations.

The calculator benchmarks performance against industry peers and highlights the company’s position within the current threat landscape.

“We believe this calculator is a powerful resource for transforming complex cyber risk data into straightforward financial insights. It enables OT leaders, security professionals, and executive teams to develop clear, data-driven business cases and recognise the value of cybersecurity investments. With actionable guidance, it promotes a comprehensive approach to resource management and strengthens overall organisational resilience,” comments Andrey Strelkov, Head of Industrial Cybersecurity Product line at Kaspersky.


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