My startup, Kronicity, is building a free site with paid upgrades, of course, designed to scale quickly. This scale will be monetized through a humber of means. The latest, I read a How to think out of the box book that came in an Amazon box, argued that my user was the product and my customer was the marketer and that I should build for them. He pointed to Twitter users as product and marketers as the actual customer.
Here's my take. There is no such thing as a user who is only a product. The user is both customer and product. Kronicity is designing for two customer segments, the user and the marketer. I FIRST have to develop a product the user will love and use. Only then will I be able to market to the marketer for all that lovely advertising money.
There's a pretty important distinction here. Defining who your customer is is critical. Every feature and design decision must focus on customer experience and customer perceived value. If you're monetizing your users, you have at least two customer segments. This requires viewing your product through two lenses and building two marketing strategies. And, if done properly, seamlessly integrating both segments into all planning phases.
Wednesday, August 26, 2015
Wednesday, August 12, 2015
What Does a Business Strategist Do?
The simplest explanation, is we consider and align every possible aspect of a business. Think of your business as a natural extension of the natural world, which it is. Alexander Pope’s reference to a “Vast Chain of Being” applies to the interconnected parts of a business just as much as to the success or failure of a species in the wild. Cockroaches, for example, are really well-aligned animals. Mammoths - not so much.
How We Do It
We do this utilizing a large number of tools and usually involves enlisting the advice and assistance of numerous other experts. I could talk all day about this, but let’s try to break it down into a few simple components.
Competitive Forces Analysis
Most startups think of competitors as the firm down the street competing for the same customers. And this is partly true. But trust me buddy, there a whole lot of other things trying to kill you. Is the technology ready for your product? Is the customer ready? Can they find a cheaper alternative? Are economies of scale working against you or in someone else’s favor? Has your competitor locked up all existing manufacturing and distribution?
By example, did betamax fail because it was too soon for a new media format? Or was it that VHS aligned themselves with Blockbuster to create a customer pull strategy? If so, VHS succeeded because they identified the superior product competitor and outcompeted with a superior distribution channel.
One of my favorite examples is a lawsuit, “Silk” versus the Milk Industry. It was settled with a collaboration where Milk wholesalers distributed the “Silk” product. In this case, the milk industry recognized a potential threat and decided to join rather than fight. Distributing gave them insights and profits. Silk recognized a powerful competitor and ore importantly a potential collaborator that provided them with a a well-established efficient low-cost distribution and marketing channel. The consumer won as well. Quoting Charles Darwin: “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
These are just a few of many competitive forces to consider. A business strategists considers all of them and recommends solutions and strategies to accommodate.
Channel Design
Understanding the competitive landscape is critical in identifying channels that need to be developed. The “Silk” example above was a very efficient and low cost solution to a problem most businesses face. Recognizing the actual competitive forces allowed them to collaborate and not only eliminate competition, but to develop low cost distribution and marketing channels. Most startups instinctively and reflexively seek the lowest-priced raw materials and manufactured goods. Big mistake! Your product is priced based on overall cost to create and deliver to the end user. A high priced manufacturer may also have well-established channels/access to your customer. They may open doors to new customers, share marketing costs, even distribute for you. Understanding channels is critical.
Financing
Let’s assume you’ve developed a better mouse trap that requires only biodegradable paper components. And you only need a $40,000 to get to market. As a business strategist, my first thought is to negotiate a partnership with a paper manufacturer to produce the product at cost, reducing your cash needs to about half or $20,000 and then borrowing that cash from the same paper manufacturer. Of course it would have to be a damned good mouse trap. But even if deemed a risk by the manufacturer, with a good marketing plan, such as using their distribution network, there is still some room for negotiation.
Marketing
Align all the parts! Can your customer be reached through an established network? Are any partners in your channels connected to them? Lord knows your manufacturers are vested in your success. Perhaps there’s a collaborator with a complimentary product? You could share costs and tap into each others customer base. The competitive analysis above can fine tune who your customers are and better target your campaigns. Your partners can share insights on what worked or didn’t work for them. Have you identified substitutes that you have to position yourself against? I witnessed a customer at a high end tea shop complain she could find an oolong at a quarter of the price the shop was asking just down the street. The manager responded that they too could sell cheap oolong but decided to maintain high quality tea did not compete on price. he shop had done their homework, priced and packaged and marketed accordingly. The customer paid the price.
Communication Channels
How many times have you gone to a retailer or restaurant and was so disappointed in the service that you never went back. Or maybe you had a suggestion that would have really helped out a new small business. I pity the poor business owner who doesn’t know of your experience nor learned of your suggestion. But in reality, it is their fault for not having established communication channels that make it easy for customers to interact with your business AND for employees to act on this data. And this communication extends from customer to business owner and straight on back to manufacturer and raw goods provider. And a well designed communications channel allows a business to respond quickly to change. Again, I quote Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
As you can see, just as in the “vast chain of being” in the natural world, there’s a lot of overlap in all categories. Aligning them is critical to survival. Your goal as a business owner or manager is to try NOT to be a mammoth. We can help.
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| https://upload.wikimedia.org/wikipedia/commons/0/0a/MammothVsMastodon.jpg |
How We Do It
We do this utilizing a large number of tools and usually involves enlisting the advice and assistance of numerous other experts. I could talk all day about this, but let’s try to break it down into a few simple components.
Competitive Forces Analysis
Most startups think of competitors as the firm down the street competing for the same customers. And this is partly true. But trust me buddy, there a whole lot of other things trying to kill you. Is the technology ready for your product? Is the customer ready? Can they find a cheaper alternative? Are economies of scale working against you or in someone else’s favor? Has your competitor locked up all existing manufacturing and distribution?
By example, did betamax fail because it was too soon for a new media format? Or was it that VHS aligned themselves with Blockbuster to create a customer pull strategy? If so, VHS succeeded because they identified the superior product competitor and outcompeted with a superior distribution channel.
One of my favorite examples is a lawsuit, “Silk” versus the Milk Industry. It was settled with a collaboration where Milk wholesalers distributed the “Silk” product. In this case, the milk industry recognized a potential threat and decided to join rather than fight. Distributing gave them insights and profits. Silk recognized a powerful competitor and ore importantly a potential collaborator that provided them with a a well-established efficient low-cost distribution and marketing channel. The consumer won as well. Quoting Charles Darwin: “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
These are just a few of many competitive forces to consider. A business strategists considers all of them and recommends solutions and strategies to accommodate.
Channel Design
Understanding the competitive landscape is critical in identifying channels that need to be developed. The “Silk” example above was a very efficient and low cost solution to a problem most businesses face. Recognizing the actual competitive forces allowed them to collaborate and not only eliminate competition, but to develop low cost distribution and marketing channels. Most startups instinctively and reflexively seek the lowest-priced raw materials and manufactured goods. Big mistake! Your product is priced based on overall cost to create and deliver to the end user. A high priced manufacturer may also have well-established channels/access to your customer. They may open doors to new customers, share marketing costs, even distribute for you. Understanding channels is critical.
Financing
Let’s assume you’ve developed a better mouse trap that requires only biodegradable paper components. And you only need a $40,000 to get to market. As a business strategist, my first thought is to negotiate a partnership with a paper manufacturer to produce the product at cost, reducing your cash needs to about half or $20,000 and then borrowing that cash from the same paper manufacturer. Of course it would have to be a damned good mouse trap. But even if deemed a risk by the manufacturer, with a good marketing plan, such as using their distribution network, there is still some room for negotiation.
Marketing
Align all the parts! Can your customer be reached through an established network? Are any partners in your channels connected to them? Lord knows your manufacturers are vested in your success. Perhaps there’s a collaborator with a complimentary product? You could share costs and tap into each others customer base. The competitive analysis above can fine tune who your customers are and better target your campaigns. Your partners can share insights on what worked or didn’t work for them. Have you identified substitutes that you have to position yourself against? I witnessed a customer at a high end tea shop complain she could find an oolong at a quarter of the price the shop was asking just down the street. The manager responded that they too could sell cheap oolong but decided to maintain high quality tea did not compete on price. he shop had done their homework, priced and packaged and marketed accordingly. The customer paid the price.
Communication Channels
How many times have you gone to a retailer or restaurant and was so disappointed in the service that you never went back. Or maybe you had a suggestion that would have really helped out a new small business. I pity the poor business owner who doesn’t know of your experience nor learned of your suggestion. But in reality, it is their fault for not having established communication channels that make it easy for customers to interact with your business AND for employees to act on this data. And this communication extends from customer to business owner and straight on back to manufacturer and raw goods provider. And a well designed communications channel allows a business to respond quickly to change. Again, I quote Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
As you can see, just as in the “vast chain of being” in the natural world, there’s a lot of overlap in all categories. Aligning them is critical to survival. Your goal as a business owner or manager is to try NOT to be a mammoth. We can help.
Tuesday, July 28, 2015
How to Avoid The Crazy Developer Partner
Chances are, as a startup, you need some development work. If you're NOT a developer yourself, consider these rules for developers.
RULE One:
NEVER make the guy developing your product your equity partner. NEVER! If you don't speak the language, be it HTML5, or java, or what the hell else, you're at his or her mercy.
RULE Two:
See Rule One, there are no other rules.
I personally have had more smoke blown up my ass by partners that are developing products for me than I care to discuss. But I have found a solution that I desperately want to share.
A developer is the most important stakeholder in your business. But never have that person develop your product. There's a serious conflict of interest there. If you can afford to, hire one as CTO to handle your development work. Their role is to understand the product, assist with development of the product specs, create requirements documents, assist in development of developer contracts, and critically KEEP AN EYE ON THE DEVELOPER BUILDING THE PRODUCT. If you're cash poor, partner with one for equity.
Considering each part of the developer partner's role, understanding the product is key. If he or she doesn't get it after a meeting or two - LOOSE 'em. They never will get it and can't help you. Some will actually argue that features are needed or not needed based on their $12.95 how-to for startup book, when they are actually guiding you to change the product to suite their development skills. If they can't build an iFrame, they simply argue it's not needed.
Your CTO should be able to assist with development of the product. Again, after two meetings they should be able to not only understand the product but be able to offer unexpected solutions that enhance the product and not change it.
Product specs are critical when outsourcing development. The CTO developer is best suited to do this. This is an accountability checklist for the developer building the product as well as the developer guiding the project for you.
Developer contracts have been around for decades. They point to the requirements document and require deliverables to be paid. Your CTO should have these at his disposal or be able to create one. Of course you'll want your lawyer review this. Your contract with the CTO should list his duties in detail as well.
Finally, both the CTO and Product developer must meet certain personality requirements. Let's be honest, folks who couldn't possibly make it working with the public, children or with normal humans can find work and happiness securely hiding behind the glowing screen. And steer clear of the developer who is an expert at everything entrepreneurial as he read the latest $12.95 How-To build a startup business book. Appropriate folks are out there. So don't let desperation and frustration tempt you to tolerate or, heaven forbid, to partner with one of these guys. If the product is a good one, FIND A STRATEGIST TO ALIGN IT, TO ATTRACT STAKEHOLDERS, AND TO FUND IT.
A side-note: If you already have an impossible developer-partner, and you know deep inside that you do, dump him or her at any cost as soon as possible.
A good startup strategy starts with a great team that includes a developer. If you're not one, take on one as partner or hire one to guide and advise. At George J. Constance, Jr., Business Strategy Consulting, we align your business with the market, key stakeholders and away from the dangerous alliances that can kill even the best ideas.
RULE One:
NEVER make the guy developing your product your equity partner. NEVER! If you don't speak the language, be it HTML5, or java, or what the hell else, you're at his or her mercy.
RULE Two:
See Rule One, there are no other rules.
I personally have had more smoke blown up my ass by partners that are developing products for me than I care to discuss. But I have found a solution that I desperately want to share.
A developer is the most important stakeholder in your business. But never have that person develop your product. There's a serious conflict of interest there. If you can afford to, hire one as CTO to handle your development work. Their role is to understand the product, assist with development of the product specs, create requirements documents, assist in development of developer contracts, and critically KEEP AN EYE ON THE DEVELOPER BUILDING THE PRODUCT. If you're cash poor, partner with one for equity.
Considering each part of the developer partner's role, understanding the product is key. If he or she doesn't get it after a meeting or two - LOOSE 'em. They never will get it and can't help you. Some will actually argue that features are needed or not needed based on their $12.95 how-to for startup book, when they are actually guiding you to change the product to suite their development skills. If they can't build an iFrame, they simply argue it's not needed.
Your CTO should be able to assist with development of the product. Again, after two meetings they should be able to not only understand the product but be able to offer unexpected solutions that enhance the product and not change it.
Product specs are critical when outsourcing development. The CTO developer is best suited to do this. This is an accountability checklist for the developer building the product as well as the developer guiding the project for you.
Developer contracts have been around for decades. They point to the requirements document and require deliverables to be paid. Your CTO should have these at his disposal or be able to create one. Of course you'll want your lawyer review this. Your contract with the CTO should list his duties in detail as well.
Finally, both the CTO and Product developer must meet certain personality requirements. Let's be honest, folks who couldn't possibly make it working with the public, children or with normal humans can find work and happiness securely hiding behind the glowing screen. And steer clear of the developer who is an expert at everything entrepreneurial as he read the latest $12.95 How-To build a startup business book. Appropriate folks are out there. So don't let desperation and frustration tempt you to tolerate or, heaven forbid, to partner with one of these guys. If the product is a good one, FIND A STRATEGIST TO ALIGN IT, TO ATTRACT STAKEHOLDERS, AND TO FUND IT.
A side-note: If you already have an impossible developer-partner, and you know deep inside that you do, dump him or her at any cost as soon as possible.
A good startup strategy starts with a great team that includes a developer. If you're not one, take on one as partner or hire one to guide and advise. At George J. Constance, Jr., Business Strategy Consulting, we align your business with the market, key stakeholders and away from the dangerous alliances that can kill even the best ideas.
Friday, June 19, 2015
We're adding In-House Development to Our List Of Services!
The best lessons are the ones that burn the most. My latest is a real doozy.
I was recently put through the ringer by a developer who insisted I create detailed requirements documents for every freakin' thing on my proposed site. How to login, what to data to collect, and what message to display when something went wrong. After a year and half of not getting anywhere, aside from really neat requirements documents, I fired the developer and went with another guy. The new guy didn't require a single document from me. He looked at images of what I wanted, asked I annotate some and took notes. A few weeks later he delivered a pretty close working beta that we used to fine tune the next set of notes he took.
Here's the difference, new developer asked why would I waste time developing such detailed requirements when he, like most developers, was going to use well-designed and well-tested plugin from a library of features, login included. He then showed me samples that allowed customization and included features neither one of us considered.
Bottom line and lesson I took, was find a developer who thinks like a startup. New guy wasn't interested in process, nor paranoid about finger pointing later. As a service-oriented developer, he took responsibility for documentation, a few hand notes and a drawing in this case, upon himself and started work immediately. It took us an hour to get requirements down and 5 weeks to deliver.
I've added new guy to my arsenal collaborators and now offer development work for your startup or growing business. From concept through web development, marketing and sales, we deliver. And we align all of this for maximum efficiency - saving you money and getting up and and running in a fraction of the time most others can.
So call us!
I was recently put through the ringer by a developer who insisted I create detailed requirements documents for every freakin' thing on my proposed site. How to login, what to data to collect, and what message to display when something went wrong. After a year and half of not getting anywhere, aside from really neat requirements documents, I fired the developer and went with another guy. The new guy didn't require a single document from me. He looked at images of what I wanted, asked I annotate some and took notes. A few weeks later he delivered a pretty close working beta that we used to fine tune the next set of notes he took.
Here's the difference, new developer asked why would I waste time developing such detailed requirements when he, like most developers, was going to use well-designed and well-tested plugin from a library of features, login included. He then showed me samples that allowed customization and included features neither one of us considered.
Bottom line and lesson I took, was find a developer who thinks like a startup. New guy wasn't interested in process, nor paranoid about finger pointing later. As a service-oriented developer, he took responsibility for documentation, a few hand notes and a drawing in this case, upon himself and started work immediately. It took us an hour to get requirements down and 5 weeks to deliver.
I've added new guy to my arsenal collaborators and now offer development work for your startup or growing business. From concept through web development, marketing and sales, we deliver. And we align all of this for maximum efficiency - saving you money and getting up and and running in a fraction of the time most others can.
So call us!
Thursday, June 18, 2015
Entrepreneurial Course at MCC
As a business strategist, I charge $210 per hour. Not the best option for most cash-strapped startups. But because I know a few of them, like Satto Technologies, may have really high potential, I tend to let the hourly rate slip for the first few causal meetings. Great way to screen potential clients and to offer help to some folks who just need it.
I still offer these casual meetups at cafe's and co-working spaces. But I've also added a new strategy - I'm teaching a 2-day weekend course on entrepreneurialism at Manchester Community College's Viscogliosi Entrepreneurial Center. Great way for me to meet and help a large number of startups and save them a great deal of money.
So, if you have a startup that's struggling or considering starting one, I'd love to hear all about it, share my insights and offer resources.
I still offer these casual meetups at cafe's and co-working spaces. But I've also added a new strategy - I'm teaching a 2-day weekend course on entrepreneurialism at Manchester Community College's Viscogliosi Entrepreneurial Center. Great way for me to meet and help a large number of startups and save them a great deal of money.
So, if you have a startup that's struggling or considering starting one, I'd love to hear all about it, share my insights and offer resources.
BUSINESS The Entrepreneurial Sequence for
Business Start-Ups
CRN 20802 | Fee: $165 2 sessions, Saturday & Sunday | 7/25-7/26 10 AM-4 PM | MCC on Main
Instructor: George Constance
For full course description, see page 47.
https://www.manchestercc.edu/wp-content/uploads/2015-Summer-Credit-Free-Catalog.pdf
Friday, November 21, 2014
Seek YOUNG Investors
Had an interesting conversation with Jennifer, an acquaintance and fundraiser for a large non-profit. She really liked my approach to business strategy development and thought my project portfolio was interesting. She also had some really interesting isights into funding new ventures - go after young technology-based employees. Fascinating approach that she backed up with a story about an investment her son made in Silicon Valley that I had to write about. But first some history.
In the early days of coffee shops, that soon became teashops, a small cafe in a shipping district of London noticed they had a lot of ship's captains seeking insurance that drew a lot of insurance agents into the shop. Being a good marketer, the owner of the coffee shop began posting a list of ships, cargos, and captains, along with insurance needs on his wall. Business boomed and he noticed a need for a third party to negotiate the contracts and the waiters quickly became skilled brokers. Coffee and tea soon became a distraction to the real business, insurance brokerage. Today, when visiting Lloyd's of London, you still meet with a waiter and not a broker.
Back to our story, Jennifer described how young, unattached and over-paid developers would congregate at coffee shops in the valley where they invariably would discuss new ventures they were working on or heard of and, of course, the cash requirements to launch. The owners almost daily noticed tens of thousands of dollars being pooled for exciting ventures. Like Mr Lloyd nearly three hundred years earlier, the coffee shop owners began to invest and broker deals and opened two additional shops for that purpose. Jennifer's son invested in the second shop. The owners didn't need an investor for the third shop.
Lesson for entrepreneurs everywhere:
1. Move to Cali
2. Pitch young folks who know other young folks that can pool resources. These folks are capable of dropping a few bucks without sacrifice and tend to be more future focused than older folks. They'll invest in a deal that might take a decade to make them uber rich. 3. Young tech savvy investors can contribute to your business and are super connected marketers
In the early days of coffee shops, that soon became teashops, a small cafe in a shipping district of London noticed they had a lot of ship's captains seeking insurance that drew a lot of insurance agents into the shop. Being a good marketer, the owner of the coffee shop began posting a list of ships, cargos, and captains, along with insurance needs on his wall. Business boomed and he noticed a need for a third party to negotiate the contracts and the waiters quickly became skilled brokers. Coffee and tea soon became a distraction to the real business, insurance brokerage. Today, when visiting Lloyd's of London, you still meet with a waiter and not a broker.
Back to our story, Jennifer described how young, unattached and over-paid developers would congregate at coffee shops in the valley where they invariably would discuss new ventures they were working on or heard of and, of course, the cash requirements to launch. The owners almost daily noticed tens of thousands of dollars being pooled for exciting ventures. Like Mr Lloyd nearly three hundred years earlier, the coffee shop owners began to invest and broker deals and opened two additional shops for that purpose. Jennifer's son invested in the second shop. The owners didn't need an investor for the third shop.
Lesson for entrepreneurs everywhere:
1. Move to Cali
2. Pitch young folks who know other young folks that can pool resources. These folks are capable of dropping a few bucks without sacrifice and tend to be more future focused than older folks. They'll invest in a deal that might take a decade to make them uber rich. 3. Young tech savvy investors can contribute to your business and are super connected marketers
Older Entrepreneurs in America
At 25, working as an oil industry paleontologist, I was offered a chance to invest in an oil well that a geology school buddy and wildcatter was drilling. It was only $7,000 for a potential 12 feet of pay and substantial returns. I looked over the science and invested immediately. A few days later, the well not only hit the 12 feet, but another 20 feet in addition. I was buying a house with that $7,000 investment! The next morning, unfortunately, my buddy called with the bad news. The well was tight, that is the oil couldn't be recovered and I lost my investment.
No big deal, I was young, earning cash, and had no dependents or heavy debts of any kind. I asked my buddy to let me know if another play came available. I had time to not only recover, but do it again.
Fast forward to August 28th, 2005 at age 45. After shuttering my paleontological consulting firm, due to an industry downturn, I had just literally shuttered my new tea and spice business, profitable after only 12 months in business, preparing to weather Hurricane Katrina. Twenty four hours later, I was ruined, like the city. What was I to do, aged 45. Did I have time to lose at this age.
Turns out I did. I reapplied my small business expertise, my consulting expertise and knowledge of species competition into a business strategy consulting firm that focused on competitive analysis. It wasn't easy. There was a bankruptcy and a MS degree in Technology Commercialization earned along the way. But, unlike in many other nations, I wasn't punished for failing and recovered. And I'm looking forward to my next endeavor that launches next Spring and promises to earn me a bundle - again.
Critical at any age, is understanding the entrepreneurial process to avoid wasting time and money. GJC Business Strategy Consulting is dedicated to helping you successfully navigate through your next venture - at any age.
Thursday, November 20, 2014
Startups Need Collaborators Not Capital
Creating a business plan to raise capital is a great growth strategy for a new and expanding business. But it's nearly impossible for a startup. Its just too risky an investment for traditional cash investors. A much better strategy is a collaboration with a partner who could benefit from your business and will eliminate or greatly reduce your need for cash.
Artists, for example, have placed their work in cafes to eliminate the cost of a private gallery. The cafes get zero cost decorations. If it's a good collaboration, the art will coordinate with the cafes branding. And by splitting profits of sale of the artwork, both parties benefits both.
This same sort of collaboration can apply to any industry. In fact, a business strategy, especially for cash strapped startups, should include the potential for a collaborator in the planning phase. Take the milk substitute "Silk". A lawsuit filed by the milk industry because of the similar name ended with a collaboration that had the milk industry acting as distributors for "Silk". The agreement not only saved the manufacturers of "Silk" the cost of establishing a distribution infrastructure but also provided a large established network for the product. Everyone won.
Lesson here is to consider all channels in your business from manufacture to retail distribution. Do you see any opportunities for your business and another? Do you have a unique skill or product that can compliment another business? Can you increase THEIR bottom line while reducing your costs or increasing your profits? And, critically, considering this before launching can guide your business strategy, including pricing, identifying the market segment to target, and identifying managerial systems to develop. The end result for the startup is faster market entry, more efficient operations and enhanced profits without a large cash expenditure.
Artists, for example, have placed their work in cafes to eliminate the cost of a private gallery. The cafes get zero cost decorations. If it's a good collaboration, the art will coordinate with the cafes branding. And by splitting profits of sale of the artwork, both parties benefits both.
This same sort of collaboration can apply to any industry. In fact, a business strategy, especially for cash strapped startups, should include the potential for a collaborator in the planning phase. Take the milk substitute "Silk". A lawsuit filed by the milk industry because of the similar name ended with a collaboration that had the milk industry acting as distributors for "Silk". The agreement not only saved the manufacturers of "Silk" the cost of establishing a distribution infrastructure but also provided a large established network for the product. Everyone won.
Lesson here is to consider all channels in your business from manufacture to retail distribution. Do you see any opportunities for your business and another? Do you have a unique skill or product that can compliment another business? Can you increase THEIR bottom line while reducing your costs or increasing your profits? And, critically, considering this before launching can guide your business strategy, including pricing, identifying the market segment to target, and identifying managerial systems to develop. The end result for the startup is faster market entry, more efficient operations and enhanced profits without a large cash expenditure.
Tuesday, November 18, 2014
Competitor Analysis
1. A competitor is not only Brand X, but, as detailed by Michael Porter of harvard, also a force such as buyer power, supplier power, potential for a cheaper replacement for your product, or a host of obstacles a new business will face due to scale, customer perception and so many more. Every new venture should work through these forces with a trained business strategist using Porter's 5 Competitive Forces Analysis. A simple PESTLE (political, economic, societal, Technological, Legal and Economic) analysis can identify other forces that might work with or against you. You don't want to develop a product that society won't buy (bell bottom jeans), the government won't let you sell (Marijuana), or can't be built (Steve Jobs waited for technology to catch up with his ipad concept).
2. A competitor analysis helps to identify core competencies and how they stack up against the competitors. This is crucial in finding your unique selling point, positioning your product and in identifying where your business needs help.
3. Related to the above, a competitor analysis can help identify potential collaborators. You may be able to position your new product to complement an potential competitor's or provide them with a new market. The lawsuit against SILK by the Milk industry ended when SILK agreed to have Milk wholesalers provide and profit from distribution of SILLK products.
4. A competitor analysis helps narrow down customer segment identification to enhance marketing and pricing strategies. Your competitors might be selling a similar or even better product, but have failed to identify the actual buyer. Is it mom or the teen aged daughter? Knowing this can really provide a leg up on the competition.
5. Most important, all of this will allow a business to craft a totally aligned and connected business strategy that can compete and identify Key Performance indicators that allow for enhanced reactive business management strategies.
These are key components of a competitive business strategy. Be sure to utilize the services of a non-prejudiced business strategist. It's easy to gloss over deficiencies in our children and our businesses. GJC Consulting can provide these services as a brief overview that will provide the entrepreneur with what he or she needs to perform the analysis alone or create the analysis and strategy for you. Operators standing by....
Tuesday, October 7, 2014
Assad and ISIS
Strategy is strategy, be it business or political. That said, I'd like some reader opinion on the situation in Syria.
The Situation:
So no one likes Assad. He's been accused of everything from supporting terrorism to terrorizing and even using poison gas on his own people. However, he's not a complete idiot and has curtailed some of his actions in the wake of international pressure. But the international community has been reticent to actually provide substantial support to these rebels.
Enter ISIS:
Thanks to western ambivalence and the power vacuum it has created, ISIS has seized much of Syrian rebel-held territory and is now poised, according to Turkey, to seize a key Kurdish town in Syria. Syrian forces are standing by idly.
Here's where I see Assad coming out on top. If he waits long enough, ISIS will defeat the rebels for him. At this point, the international community will be forced to help Assad seize back rebel-held territory from ISIS.
Imagine that, the US and its allies helping Assad recapture rebel territory. Question is, what strategy would be in the United States' best interest?
The Situation:
So no one likes Assad. He's been accused of everything from supporting terrorism to terrorizing and even using poison gas on his own people. However, he's not a complete idiot and has curtailed some of his actions in the wake of international pressure. But the international community has been reticent to actually provide substantial support to these rebels.
Enter ISIS:
Thanks to western ambivalence and the power vacuum it has created, ISIS has seized much of Syrian rebel-held territory and is now poised, according to Turkey, to seize a key Kurdish town in Syria. Syrian forces are standing by idly.
Here's where I see Assad coming out on top. If he waits long enough, ISIS will defeat the rebels for him. At this point, the international community will be forced to help Assad seize back rebel-held territory from ISIS.
Imagine that, the US and its allies helping Assad recapture rebel territory. Question is, what strategy would be in the United States' best interest?
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