Helping Values-Driven Leaders With the Hard Stuff
Each product will have its own strategy. The product strategy will define the role that the product plays in the company’s portfolio and which business objectives it helps the company achieve. As with any aspect of the business, the product strategy has to align with the higher level strategies in the business.
The channel strategy (or distribution strategy) is driven by the market strategy. There are typically multiple distribution options that a business can consider. The channel strategy is primarily focused on determining the optimal mix of sales through different distribution channels.
Once the competitive strategy is determined, the market strategies can begin to take shape. Traditionally, marketing is represented by the marketing mix, or the “4 P’s of Marketing”: Product, Price, Promotion, and Place (distribution).
Perhaps the most foundational strategic decision for any business is the basis on which you will compete in the marketplace.
To be successful in a competitive market, there must be a reason for customers to select the firm’s offers over those of competitors. Arguably, Michael Porter defined the discipline of competitive strategy with his 1980 textbook on the topic. Porter and the team of Michael Treacy and Fred Wiersema each provide a framework for competitive strategies.
Whether using Porter’s generic strategies or Treacy and Wiersema’s market disciplines, the competitive strategy chosen will drive decisions across the company.
Competitive Strategy Read More »
Built to Last is a great book. It is inspiring and challenging. It is full of good ideas that are, realistically, hard to implement. It is one of those books that, when you read it, you see many observations about great companies that should have been obvious. Sadly, you may also begin to see many things at your own company that you wish were different and that you know will be difficult to change. Even so, it is well worth the read, and perhaps, over time, you will find ways to make your own business more visionary and more successful using the lessons learned within.
The authors spent six years studying the entire lifecycle (to that time) of 18 companies that they called visionary. They compiled the list by surveying 700 CEOs of leading companies across industries. They also looked at 18 comparable companies in the same industries that had similar opportunities, but came up short in terms of their enduring impact. They then looked for the common characteristics that set the visionary companies apart from their peers. From this lengthy research, they distilled eight truths and challenged twelve myths about what makes a company successful.
Book Brief: Built To Last Read More »
Non-profits need sound strategy just as much as for-profit businesses.
Non-profits need to clearly define the mission of their organization and how they will achieve that mission given the realities of the external environment (opportunities and challenges) and given their internal strengths and weaknesses.
Whether for a standalone business or a corporate business unit, the business strategy will reflect a competitive market and an envisioned future role within that market. The business strategy is typically the foundation for many other strategies that we will discuss in the coming days.
Business strategy drives investment decisions in sales/distribution, product development, and operations.
Ultimately, the corporate strategy needs to clearly and coherently communicate a long-term vision for the corporation, the overall funding approach, the role that each business plays, and the guiding principles that enable investment decisions at the business/market level.
Corporate Strategy Read More »
There are many different types of strategies and there are significant differences between them. Starting today, I want to start looking at some of the more common types of strategies in established corporations and non-profits.
Any given organization will have one top-level strategy. This will set the direction for the entire organization, defining areas of focus and prioritizing investments.
Top Level Strategy Read More »
Although ALDI operates as two independent companies, they have both adopted and maintained the same business model.
ALDI’s generic strategy is low cost leadership. As they have launched operations around the world, and launched into very different businesses, they have maintained this strategy. That is hard to do. Even harder is the consistency with which the companies’ low-cost strategy is implemented from top to bottom within each business.