The Importance of a Clear Business Strategy
CONTACTStrategy is the set of choices that define a company’s unique competitive position and explain how it will achieve superior performance.
Ask Your Executive Leadership Team the Following Questions:
- Who are we?
- What do we do?
- Who do we do it for?
- How are we different from our competitors?
Articulate the purpose and core values of your company and your long-term vision - these do not typically change over time. Create a one-phrase strategy statement that is memorable and explains how you operate differently from your competitors.
A comprehensive understanding of your target customers’ needs, desires, challenges and purchase influences, as well as other attributes and drivers, is critical. Develop a detailed profile of your ideal customer and identify your unique, compelling value proposition to ensure your success.
Strategy also identifies what a company will not do. Strive to meet different needs or serve different customers than your competitors. The biggest mistake in strategy is having the same offerings, as this leads to a price war, which nobody wins:
• Customers are deprived of choice
• Products and services are of poor quality (because all players have eliminated costs)
• It becomes unsustainable for all competitors
Strategy makes priorities clear and keeps your employees focused on doing the right things. Everyone in your company should be able to consistently communicate your strategy and use it to guide their daily decision-making. Employees should have specific metrics and understand how their individual activities contribute to your company’s success.
Execution of a clear strategy will ensure alignment across every function within your business and enable you to achieve your growth goals. Review your strategy frequently and learn from your execution. Be successful by design, not by accident.