When overcrowded markets meet lackluster economic times, the result can be business paralysis. In such environments, many companies simply give in to temptation and join (or start) price wars, which in the end are almost always losing propositions. And when an entire industry becomes stagnant, companies often surrender to the pervading inertia, waiting for things to get better.

Here are five basic strategies that, when applied competently, can help organizations develop momentum to outperform their competitors.

1. Shore up business strategies with up-to-date facts. The purpose of a business strategy is to generate a competitive edge that will increase profits. Many companies build strategic plans when business is flourishing. Then, when conditions change, they fail to gather reliable and current data on which to base or change their ongoing strategy. Competitive intelligence is critical to success. Organizations must secure adequate amounts of objective research to reaffirm their strategies and back up their hunches.
   
   
2. Stop looking for answers on the inside.  In a fiercely competitive environment, strategy had better be all about the customer. Organizations that are too focused on internal strategic initiatives, processes, or technologies could miss the mark. Make certain that products and services are designed to solve customers’ problems - and make sure the problems being solved are those defined by the customers, not by the company.
   
   
3. Adopt an unrelenting external focus. Organizations can gain ground by making steady, persistent contact with their existing customers and by being resolute in capturing plenty of face-to-face time with prospective clients. Sales teams must also perform thorough investigative work in order to know all there is about prospects and their challenges. During difficult times, both salespeople and executive team members should make it a point to get out in front of prospects and customers equally, focusing the most effort on those with the largest potential for return. And while out in the world, they should always ask for referrals.
   
   
4. Let go of high-maintenance, low-value customers. Every company has them: customers who take up inordinate amounts of time, resources, and energy, and produce relatively little value in return, with almost no promise of future growth. Organizations should strongly consider saying goodbye to their least promising customers so they can redirect their energies to customers and prospects with more growth potential.
   
   
5. Build alliances with other organizations. Forming an alliance with a leading customer or developing a partnership with a complementary company can allow an organization to reach previously untapped markets. The right joint venture can open doors to better opportunities and generate a bigger share of market revenue.