Research shows very few companies actually know how to create an effective strategic plan
AND successfully implement it in the marketplace. Is your company one of them?
Failure to properly implement your marketplace strategy does much more than create
glitches in the business. It can actually lead to business failure. And, in many
situations, an incorrectly administered strategy is worse than no strategy at all.
That's why, in my new book, Strategy Activation: How to Turn Your Vision into Marketplace
Success, I explain how "strategy disconnects" occur in even the best
organizations. Why Strategy Disconnects Occur - And
What It Can Mean to Your Business
Disconnect begins when businesses make a promise to the
marketplace without first completing a self-assessment of competencies.
When creating their marketplace strategy, most organizations research customer needs,
competition promises and relevant gaps between the two. Yet, most companies do not
recognize their current capabilities and limitations when considering their strategic
options. Or they overestimate how much change they can absorb in pursuit of the strategy.
Either misstep can have a tremendous negative impact on delivering on the promise.
To Succeed in an Increasingly Knowledge-Based Economy, You
Must:
- Determine where the real and future market gaps in your
industry exist
- Identify opportunities that align with your existing image
and resulting marketplace "permissions"
- Confirm that your organization has the right capabilities or
realistic odds of creating the necessary capabilities
- Envision how your strategy will be implemented at each key
customer touchpoint
- Define clear roles and chain of responsibility
- Remain flexible and responsive to marketplace shifts
Most organizations have a number of strategic options and
viable paths to potential marketplace success. Understand and use my three general rules
when it comes to settling on the best strategic option for your organization:
3 Rules You Must Know When Choosing Your Marketplace
Strategy
1. Your marketplace strategy must communicate a compelling
and relevant promise to customers, regardless if it is faster turnaround time, luxury
style or lower prices. In short, it must address a customer need.
2. The marketplace strategy must align with your organization's capabilities. Capabilities
can grow and change over time but the organization is limited by how much change it can
absorb in a specific time period.
3. Your go-to-market strategy must leverage your current image and resulting marketplace
permissions. For example, few of us would pay McDonalds $20 for a filet mignon. It's hard
for us to believe a fast food restaurant could deliver the quality worthy of such an
expensive meal.
Remember, a Marketplace Strategy In and of Itself
Will Never be Enough.
The key lies in executing your marketplace strategies
flawlessly.
That means you must capitalize on existing strengths. An organization can only truly and
consistently deliver products and services that its people, processes, tools and systems
are capable of generating. Anything else is just empty talk.
That's why your company needs to assess its strong points from the start. Your
organization's strategies must be aligned with its strengths. You can't lose focus by
chasing after spurious targets that are promised by the competition if they do not fit
your business model.
For example, consider the wholesale mortgage lender that built its business and reputation
around high touch personalized service. Real people answered the phone when customers
called. This was their historic strength.
During the refinance boom the marketplace began to change and competitors began promising
high-tech, low-touch solutions to solve short-term capacity constraints. Our lender
decided to go with the flow and do the same, for the wrong reasons and with the wrong
setup.
The lender abandoned its original strategy of high touch service, which aligned with the
company's positioning, image, promise and differentiation. They chased a
technology-superiority strategy focusing on an aspect of the business (technology) that
had never previously been one of their strengths.
Investments were cut back in recruiting and training of personnel and instead put into
building new advanced systems. The results were anything but positive.
The "me too" strategy was not the way to go. Here's why:
- Their customers bemoaned the loss of the personalized
service orientation,
- Customers didn't believe that this particular lender could
deliver technological excellence
- The organization risked losing its relevancy and preferred
vendor status with many loyal customers.
- The lender disregarded its best marketplace
strategy…one that was compelling, differentiating and feasible
The moral of the story: There are many different viable
strategies. The point is to determine the marketplace strategy that is best for your
organization and stick with it. Follow my strategic planning advice and you will create a
marketplace strategy that actually gets results. |
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Pioneering Marketing Strategist, Scott
Glatstein, President of IMPERATIVES, LLC turns market opportunities into record-breaking
profits with effective marketplace strategy planning & execution. Now for the first
time, with his new book, "Strategy Activation: How to Turn Your Vision into
Marketplace Success," Scott unveils his groundbreaking plan for higher strategic
profits. Get your FREE SNEAK PREVIEW at: http://www.strategyactivation.com
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