Creating your strategy for the 'next normal'
You've probably faced your share of business challenges. Depending on the age of your organization and industry you operate in, you may have planned to introduce new products or moving into new markets. Or decided how to allocate your resources at the annual budget round. And now you face a new market situation, generally called ‘the next normal’. Any of these challenges link to your strategic direction.
Three strategic directions for your business
Your strategic direction is often fueled by the life-cycle stage of your organization and directly related to your goals. Apart from strategies focused on leaving the market, there are three basic directions:
Ready for growth
It’s easier to sell in a market where your product meets the demands. So, when you are ready to grow, the one with the best market-fit is exactly where you’ll want to start. Best market-fit means: the most attractive market where your offer best meets the local buyer needs. This requires a thorough insight in the status of external factors, such as the local macro situation, buyer needs and competition. And in how well your approach aligns with those market needs. Only with the full picture you’ll be able to compare market-fit amongst potential markets properly and choose your path confidently.
You have created great products. And many of them. But there comes a point your portfolio just outgrows itself. Hard as it is to ‘kill your darlings’ you can only keep subsidizing underperforming products for so long. And to be quite honest, no sentimental value or nickel and dime earned on them weighs up against the costs you are making. Too large a portfolio burdens your organization and drains those resources that could be used for good elsewhere. Make sure to evaluate the potential of all products honestly, compare them, scale back where necessary and focus on your products with the highest contribution.
Your chance of success depends on many factors. When a number of them change –as they have now with the Corona crisis- you’re likely to notice an undeniable difference. It may be harder to convince prospects to buy. Or your revenues drop due to price reductions or lower efficiency. Consolidating is not about keeping things as they are. It is about keeping your market share or business results by choosing your battles, and focusing you attention. Going for the low hanging fruit. And only if you have resources left –be it budget or people- spread your attention to other markets. So make sure you know where the low hanging fruit, or your sweet spot, can be found.
The right strategy for your direction
No matter which direction you’re planning to go, you’ll need to determine where your efforts will have the most effect, and what efforts will get you the most effect there. So you can define a winning strategy that will ensure you reach your goals. This means analyzing all relevant factors and determine your market-fit. A holistic market analysis, based on proven models, can provide you crucial, data-driven insights: what countries and products should you focus on. And what marketing & sales adjustments are needed to optimize your result. Because, as “Mr. Strategy” Dr. Kenichi Ohmae put so well: “Rowing harder doesn’t help if the boat is headed in the wrong direction”.
Struggling to determine the right strategy for your business challenge? SpotOpp provides a clear solution to help you with issues in this area. Please don’t hesitate to contact us if you want to know more.