How to Compete (and Win) in Low-Margin Markets

When you're in a low-margin market, the conversation usually goes straight to costs. Cutting, automating, renegotiating... All of that is valid — and necessary. But if that's the only path you're exploring, you're playing the wrong game.

Because the problem often isn't the margin. It's your business model.

Margin Is a Signal, Not the Diagnosis

We tend to see low margins as an unchangeable reality — like part of the rules of the market. But in many cases, it's just a red flag. A signal that something in how you're generating and capturing value isn't working.

If all you're doing to compete is lowering your price, then your offering may not be as valuable as you think. And that’s not fixed with efficiency. It's fixed by redesigning the model.

What Changes the Game Is Not Cutting — It's Rethinking

At Raven, we work with companies in tough industries like retail, finance, utilities, FMCG, pharmaceuticals, and telecommunications, where margins have historically been tight.

And we've learned that what moves the needle isn’t the technology itself, but how you redefine the way you operate, capture revenue, and leverage internal capabilities to create advantage. It’s not about doing more with less — it’s about doing something different.

A Real Case That Proves the Point

A last-mile delivery company came to us with collapsing margins. Fierce competition, customer pressure, little room to differentiate. When we reviewed their capabilities, we discovered an internal tech platform they used to coordinate their operations — and it was underutilized.

The question was simple:

What if this doesn’t just help you operate better — but could also become a new business?

Today, that same platform is a product. They operate better, and they also sell it.

It wasn’t about efficiency. It was about seeing the model through a different lens.

Four Questions Worth Asking

• Are you creating value you're not yet monetizing?
• Do you have internal capabilities that could become a new business line?
• Is your offering competing on price… or on impact?
• Is your technology solving tasks… or enabling new models?

The Winner Isn't the Cheapest — It's the Boldest

Competing on price can work for a while. But growing, scaling, and sustaining over time requires more. The courage to question your model, challenge assumptions, and redesign.

So if you're in a low-margin market, don’t just ask: How can I cut more? Ask yourself:

What would have to change in my model to make competing here not just possible… but profitable? That’s where real transformation begins.

Does This Challenge Resonate With You?

At Raven, we help companies redesign their models to grow where others merely survive. If this speaks to you, let’s talk.

Let’s explore how we can help you identify and capture new market value through strategic disruption in a Q&A where:

• We’ll explore your current business challenges and aspirations
• Share relevant case studies and approaches
• Determine if there's potential for a purpose-driven partnership