An objective analysis and understanding of your markets and your costs and capabilities forms the bedrock for the strategy development process. From this analysis and by applying creativity will come a number of options and opportunities that can be used to build and implement a solid strategic plan for new or existing markets.
Setting a strategy requires knowledge in three areas:
Customers: Existing customers and potential customers and markets. What do they do? What would help them do what they do better? What are their needs? Where are the most profitable customers?
Competencies: Skills, knowledge and relationships. What do you do well? What abilities could you draw on? What costs do you have to carry? Where do you make money?
Competition: The whole competitive environment from regulation to real life competition. What is the basis of competition? Where are the threats? Where is their pressure and where is the market easy?
Analysis of the three areas is interrelated. Who you choose as your target audience will have implications for what capabilities you need, which will have an impact on what competitive pressures are around which will influence who you choose as your target audience.
We take each of these areas in turn.
Some companies will have all this knowledge to hand easily and readily. Others will require information and analysis to be carried out in order to bring together the knowledge together into one place.
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