What are some strategies for businesses to effectively allocate resources?

A business can maintain its competitive edge while reducing efforts in certain areas by understanding which factors the industry has been competing on for a long time. These are the efforts that should be eliminated or reduced. The business should differentiate itself in underserved areas and allocate more resources to raise or create more value in these factors.

Some potential challenges in allocating more resources to underserved areas could include lack of infrastructure, difficulty in measuring impact, resistance from local communities, and potential misallocation of resources. It's also important to consider the financial implications, as allocating more resources to these areas may require significant investment.

A business can measure the success of its efforts to differentiate in underserved areas by tracking key performance indicators (KPIs) such as market share, customer acquisition and retention rates, and profitability in those areas. Additionally, customer feedback and reviews can provide valuable insights into how well the business is meeting the needs of customers in these areas.