Are You a Content Creator or a Value Creator? What is Your Competitive Position?
Everyone is a creator today. From posting photos of your vacation on Instagram, posting a summary of the HBR article on LinkedIn, to writing an article on Medium.
Content Creation can be defined as a ‘product’, regardless of format, that appeals to the masses (viral). It meets a short-term need and provides a ‘quick-hit’ of satisfaction. As immediately as the content is consumed, its memory can evaporate with a swipe and it is replaced with the next dose of momentary satisfaction.
Value Creation is a product with a more limited range of interest based on its ‘focused’ subject matter. It intends to produce a longer-lasting effect on the consumer, providing or validating knowledge, which has value beyond the initial point of consumption.
Both content and value creation have benefits. One is not better than the other. An individual can consume both products. However, there are important differences:
Exceptions Apply: As with all things, there are exceptions to these differences. Any of MrBeast's videos can defy the characteristics of content creation.
Cost Leadership & Product Differentiation Competitive Positioning
When we are looking at the characteristics of content creation and value creation, they can be related to a concept called Competitive Positioning. Competitive position refers to how you decide to ‘exist’ in the market. This concept was developed by Harvard Professor Michael Porter.
Do you want to offer low-cost goods to appeal to the masses and need increased market share, then you are in a Cost Leadership position. A critical requirement for your business strategy to be profitable is to gain market share by selling at a low cost, which also means manufacturing at a low cost.
Do you want to provide higher quality products (at a higher cost) to a select segment of the marketplace, which relies on product innovation, then you are in a Product Differentiation position. To be profitable in this position, you need to continue investing in new products and higher-quality manufacturing.
A cost leadership position relates to content creation and product differentiation relates to value creation.
Why Understanding Your Competitive Position is Important?
Photo by Jezael Melgoza on Unsplash
If you’re thinking about becoming a more full-time creator you should consider the type of content your want to create, since it will have an impact on the frequency, effort (time) and length of your product.
If you want to monetize your content and establish a business, then you will need to know your competitive positioning since this will determine your quality, pricing and extent of customization.
More importantly, knowing your competitive position will determine how you attract customers, distribute your products, and generate new products (ideas) to retain customers.//