When we start a project is easy to forget the strategic planning. We believe that if we find a need to be filled in the market and provide the product or service, we will be successful and achievesustained growth.
“If there is no planning at least for the next three years, it is 100% sure that there won’t be a sustainable growth.”
Having an strategy raises the possibility of succeed and grow. It is important to investigate and analyze the market, competition and trends, which will provide bases and tools to generate a long-range vision.
Developing a strategy means drawing a map indicating where you want to arrive with your project, and in order to achieve that there are thousands of techniques, literature, models, etc. One of the most effective and taught in all courses and masters of science in strategic managementis conducting a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). Thanks to these analyzes it will be much easier to set a starting position and help you chart a course to follow and achieve success in your business. These are the 4 steps on the SWOT analysis:
- Strengths: Look into your project and describe all the positive characteristics that differentiate you from your competition.
- Weaknesses: Find those areas where you are limited or you can still improve and make a list.
- Opportunities: Find in the market those features that may be optimal to introduce your service.
- Threats: Find what competitor actions may weaken your position in the market. You should also consider some other facts that could affect you.
3 Business Directions for your Business
After a SWOT analysis, you can make the decision of which direction or business strategy you want to follow. To do this, there are only three courses, called “value disciplines” and when you choose one of these, you shouldn’t give up the rest. This means you should be very good in the chosen discipline, but competitive in the others.
1.- Strategy based on the operation.
If you base your strategy in this discipline, you must achieve operational excellence. The whole business is focused on the operation to be perfect and running like a clockwork; with a strategy based on the perfection of the operation.
2.-Strategy based on the Product.
You must base your strategy in this discipline when your product meets a task more efficiently and gives greater customer satisfaction.
3.- Strategy based on the Service.
This discipline inclines you to go beyond your product and the price you offer your customers in order to establish a regular relationship. If you base your strategy on service, you are required to develop a closer relationship with your client. Learn how to develop a close relationship with your customers and that will allow you to focus adequately on your serving manner.
Have you already developed your strategy for your business? What is the value discipline to where you approach?