Never underestimate the importance of corporate strategy for a company’s life: 4 questions that help you not to get lost:
Who do I turn to?
First of all, your customers must be profiled through different attributes, such as age, geographical distribution, interests, status, and other characteristics that allow you to place them in a very specific market niche.
The next step is to define your value proposition; in other words, the task you intend to perform or the problem you intend to solve with your product. On your second post it you will then write:
What do I offer ?
This part of the strategy opens up different scenarios. It can, in turn, make use of techniques and disciplines such as design thinking, as it virtually includes infinite readings and infinite schemes and practices to which we can refer.
The answer to the question “What do I offer” implies answers to other questions that define your product and its value in more detail:
- What are the aspects and characteristics based on which the customer will assign a certain value to my product? And to what extent will each of these elements influence this value assignment? In other words, what will make my product attractive to the customer? The possibilities for customization? The aesthetics? Technical performances? The price? The method of purchase?
- What are my strengths compared to competitors?
- On what points will I find myself on par instead?
- What will be the weak points?
Remember that it is highly unlikely, if not entirely impossible, to outperform the competition in every aspect.
How can I provide this value?
While planning your market position, defining how to create value and for whom, you must also define your operating model. The operating model is the set of decisions and practices that define how you carry out your business. It typically involves a series of compromises to try to find a combination of activities that allow you to monitor your position, offering some elements of your solution better than those of the competition.
This could be the most difficult question because designing the operating model means making and planning a series of decisions, choices, and moves that allow you to develop, start, monitor, and maintain your business.
What are my competitive advantages?
This is, in fact, the central node of the whole strategy. What guarantees you cannot be copied? You may have also come up with the perfect product, but if your competitors can replicate it easily, your nascent business will be short-lived.
Although there are innumerable competitive advantage factors, they are divided substantially into two groups: those based on resources and those based on positioning.
The first group implies all the resources that assign value and uniqueness to your business. In contrast, the second is defined by the role you have occupied in the market and, therefore, by elements such as your brand’s perception, your reliability, and the quality of your product.
These four questions cannot cover all aspects of the strategy, but constitute a starting point to define who you are addressing, the specifics of the product or service you offer, how to propose it and how to defend yourself from the competition beat it.…