Deciding our business strategy in easy steps
Deciding our business strategy sounds complex. It sounds like something that it would be good to put off until another day! But it isn’t, so don’t!
For all companies, deciding our business strategy starts with two simple questions.
Deciding Our Business Strategy – Question One
Question one; are we going to compete on a mass market basis? Can we be like the Ford’s, Walmart’s and Microsoft’s of this world? Or are we going to select niche markets and compete selectively in them?
For most of us, resources, in particular financial resources, mean that we cannot compete on a pan global stage. So we choose a number of niche markets to compete in. We apply our resources efficiently and effectively to create a real presence.
Now don’t be confused – niching doesn’t mean we can’t compete overseas. Any business can aspire to that. But what it does mean is that in deciding our business strategy, we won’t be competing in every world market!
So dependent on our resources, we make this choice and select markets / target audiences that we are going to focus our efforts on.
Deciding Our Business Strategy – Question Two
On to question number two. Are we going to strive to be the cheapest provider in the market place? Or, are we going to demonstrate differentiated added value that makes it worth paying more for our product than that of the market cost leader?
Every market has a cost leader. And there is nothing wrong with aspiring to be the cost leader, providing you have the resources to maintain that position when challenger brands put you under price pressure.
But for many of us, being the cheapest is not a position that we either seek, or that we can sustain.
So we compete through being different and in the eyes of the market having the best value for money proposition around.
So how complicated was deciding our business strategy? Two simple questions and we are already well on the way as a business that serves niche markets with a highly differentiated product or service offering to our competitors.
There’s more, of course there is, and we’ll build on this in subsequent blogs!