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Business Strategy – are you making this critical mistake?

A critical mistake many business owners make when it comes to Business Strategy and which precludes them from getting their businesses to achieve above average performance, is the lack of understanding about how to grow their business!

Too often business owners mistakenly believe that striving to be the ‘best’ is a strategy that will lead to superior business profits.

They aim to be the best – they think in terms of having the best products, employees, service and so on, and that this will lead to success.  However, this thinking and approach is flawed.

Trying to be the best is not a Business Strategy!

It is a flawed business strategy because what constitutes the ‘best’ depends entirely on the individual customer and their specific needs, and in any given industry, this changes significantly from one customer to another.

Is a Ferrari better than and Combi Van?

For some people, the quality of engineering and performance of the Ferrari results in a resounding yes.

However, for many others, the answer is the Combi Van is a far better fit for the job at hand!

Simply, what is ‘best’ depends entirely on the individual and their particular needs and desires!

The reality is that there is no one ‘best’ product or service or anyone best set of resources and activities needed to deliver that product or service.

This thought process drives businesses to try and be everything to everybody.  In the pursuit of growth, they aim to please everyone and anyone – they chase growth anywhere and everywhere they think they can get it!

Aiming to please everybody is a major strategic mistake!

You cannot please everyone and aiming to be the best means you are trying to do exactly that – wandering aimlessly in the pursuit of the mythical!

This is a hallmark sign of the lack of a Business Strategy.

The lack of a clear understanding of what it takes to achieve above average business performance – what it takes to win in the competitive business environment.

Aiming to be everything to everyone leads to reduced business:

  • Efficiencies and effectiveness
  • Expertise and capability
  • Brand, image and reputation

It lowers growth potential and success!

Don’t be the best – be unique!

Instead of aiming to be the best, the starting point for a successful business strategy is to aim to be unique!

Simply to be the best at only some things to the exclusion of many others!

You cannot create a competitive advantage unless you target a group of customers that value different and specific outcomes.

Competitive advantage comes from being able to meet specific needs of some customers at the expense of other needs and other customers!

To do this better than your rivals!

What do you want to be known for?

You must aim to be the best at something specific for a specific customer to achieve above average business performance!

If you aim to compete with your rivals on the same dimensions – serving the same customers with the same needs – you do not have a ‘winning strategy’ capable of achieving a sustainable competitive advantage and superior business performance.

Knowing what you should not be doing is just as important as knowing what you should!

Unfortunately, many businesses (including large corporates) do not have a well-developed, clearly communicated and consistently executed Business Strategy.

They are not clear on the key aspects of how they are seeking to achieve the advantage needed to drive superior business performance and therefore fail to implement consistent strategies and actions needed to achieve it!

A winning Business Strategy

There is no one size fits all Business Strategy.  It is a matter of individual design for each business.

Getting your business to realise your goals and dreams, requires a well-developed, clearly articulated and consistently executed Business Strategy.

Winning Busienss Strategy

Your Business Strategy is a coherent set of activities and resources aimed at achieving a unique value proposition that will provide you with a sustainable competitive advantage.

It lights the path for your business growth and leads to superior business performance by defining:

  • The target market segment you compete in and which customers you will serve and which ones you will not
  • What unique value you provide,  which customer needs you will meet and which ones you will not
  • The resources and activities required to deliver your product or service
  • How you incorporate ongoing innovation into the core of your business to sustain your unique value and competitive advantage

To maximise your success, it is essential that you have a very clear Business Strategy that details how you will succeed in the competitive environment your business operates in – how it will achieve superior performance.

If you would like to learn more about how to create a winning Business Strategy that will set you on the path to getting what you want from life, give the team at Fortitude Business Consulting a call on 1300 551 040.

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Business Strategy - are you making this critical mistake?

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