Strategy: It really is all about winning
A well thought out Business Strategy increases profitability and sets a clear long-term direction for your company.
Business Strategy involves the relentless quest for sustainable competitive advantage on which your business can secure superior profits.
Strategic Planning identifies disruptive changes to your company's external commercial environment and envisions the entrepreneurial opportunities (as well as the threats) that might evolve from them.
Competitive advantage usually consists of a complex bundle of small individual advantages within the company's value chain which competitors will find difficult to identify, let alone replicate.
We start by undertaking three forms of deep analysis:
Industry Analysis: This identifies the economic forces of competition from suppliers, buyers, new entrants, substitute products, complimentary products as well as the company's own rivals and particularly the barriers such forces create and how the company can use these barriers to its competitive advantage.
Analysis of the Company's Resources and Competencies: An extensive audit of a company's expertise and resources is very important in considering what other industries and markets in which they could be utilised. For example, a camera film manufacturer whose business has been usurped by the digital age could consider using its expertise in chemical processes towards a different industry that requires that skill set.
Market Segmentation Analysis: This measures the size of the market and how it segments among its consumers. By using benefit-based market segmentation we attempt to find new segments within the marketplace which remain unserved by competitors.
Using the competitive advantages from the above analysis we then find further sources of competitive advantage from the following two generic strategies: Cost Leadership and Differentiation:
If the company decides to follow a generic strategy of Cost Leadership, we analyse and identify sources of competitive advantage in the company's cost structures; including economies of scale, the learning curve, production techniques, product design, input costs, capacity utilisation as well as general residual efficiencies.
If the company decides to follow a generic strategy of Differentiation, we undertake deep analyse to better understand the customer. This will include detailed market research such as multidimensional scaling, conjoint analysis, hedonic price analysis and value curve analysis. We then use the Value Chain to identify the drivers of uniqueness to discover further potential sources of competitive advantage. We also advise on potential market positioning and branding strategy.
We then assist senior management on the potential strategic choices available to the company, the potential returns and risk together with how they align to the company's long-term goals and vision.
We further help companies to formulate the appropriate management style, organisation structure and transition programmes to help the new strategy be a success.
Finally, we put in place feedback mechanisms for management to monitor the new strategy's rate of success.
We would be delighted to work with you in formulating your company's Business Strategy from start-to-finish or engaged on specific stand-alone projects involved with just one aspect of creating your new strategy, perhaps working alongside your own strategy department.
Before we undertake work we visit you at your company to discuss what we can do for you and provide you with a fully costed proposal - free and without obligation.
The next step is to call Michael Williams on 07772 076476.
Michael Williams MBA