Field sales people constantly on the road: On the other hand, in industries that are difficult to enter, sources of competitive advantage last longer, and firms also tend to benefit from having a constant set of competitors.
The intensity of competition tends to increase when an industry is characterized by a number of well-balanced competitors, a slow rate of industry growth, high fixed costs, or a lack of differentiation between products.
To help you segment your target customers, a detailed list of major categories of characteristics is provided at the end of this section.
Substitution can be subtle—for example, insurance agents have gradually moved into the investment field formerly controlled by financial planners—or sudden—for example, compact disc technology has taken the place of vinyl record albums. Where are you vulnerable. What do you do well in sales, marketing, operations, management.
Define Customer Segments Customer-focused organizations recognize that they cannot appeal to all buyers in the same way. Since both you and your competitors are in the same industry, the key is in finding the differing abilities between you and the competition in dealing with the industry forces that impact you.
Understanding the forces at work in the overall industry is an important component of effective strategic planning. Where are the red alerts in your environment.
This positioning statement should provide consistent messaging and communication.
The Future of Business. Select segments your company can compete in successfully. For example, benchmarks performance might include specific quality and timeliness standards. Powerful buyers can exert pressure on small businesses by demanding lower prices, higher quality, or additional services, or by playing competitors off one another.
Understanding the company's operating environment in this way can help the small business owner to formulate an effective strategy, position the company for success, and make the most efficient use of the limited resources of the small business.
By comparing a particular ratio for one company with that of the industry as a whole, a business owner can learn much about where her business stands in comparison with the industry average. In industries that are easy to enter, sources of competitive advantage tend to wane quickly.
A nationwide retail store: When your customer thinks of your company, what do you want to come to mind. Another factor increasing the intensity of competition is high exit barriers—including specialized assets, emotional ties, government or social restrictions, strategic interrelationships with other business units, labor agreements, or other fixed costs—which make competitors stay and fight even when they find the industry unprofitable.
Many of these ratios may be calculated for an entire industry with data available from many reports and papers published by the U. Supplier power can affect the relationship between a small business and its customers by influencing the quality and price of the final product.
American Marketing Association, Rather than trying to compete in the entire market, you must identify parts of the market that you can serve best and most profitably. After you have identified your segments, determine what they need and how you can best satisfy them by providing value.
Where are you loosing money. If you have a business-to-business product or service, the major categories are:. The top management team, the employee task force, and others develop the implementation plan. The top management team then monitors progress. The employee task force continues its work by providing feedback about how others in the organization are responding to the changes.
How to improve strategic planning By Renée Dye and Olivier Sibony How to improve strategic planning. Article Actions. Share this article on LinkedIn In all but the most volatile, high-velocity industries, it is hard to imagine that a major strategic redirection will be necessary every planning cycle.
In fact, forcing businesses to. The AMA Complete Guide to Strategic Planning for Small Business. American Marketing Association, American Marketing Association, Darnay, Arsen J., ed.
Service Industries USA. Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing.
NATIONAL INSTITUTE OF MARKETING OF NIGERIA EXECUTIVE MEMBERSHIP PROGRAMME (EMP) TOPIC: STRATEGIC PLAN TO POSITION DONALSEA INDUSTRIES AND BEVERAGES LTD FOR OUTSTANDING PERFORMANCE BY ADEOYE BABATUNDE ADEOLA EMP/22/11/LAGOS INTRODUCTION Donalsea Industries and Beverages Ltd Is a company that specializes in the.
Strategic planning involves developing specific business goals that are SMART: specific, measurable, achievable, relevant and timely.Strategic plan to position donalsea industries