Want a successful 2017? Then you need to make sure you have a successful strategic plan set up for that success. Of course, you likely have objectives and goals you want to meet and ideas of how to get it all done, but specific strategy (after all, the word strategy did come from the military concept of organizing forces to defeat an enemy) will help you achieve them.
The big picture.
Consider the concept of strategy creation, which needs thorough research to best help a company’s profitability, sustainability, and competitive edge. Key stakeholders will then use that research (based on external factors that affect the business and internal capabilities). In turn, senior management uses those findings to focus on the most important issues the company needs to work through. Then they create action plans to address each issue, including a process for implementation, to achieve maximum success. All of this needs time, consideration, and solid communication between leaders and senior management, as well as customers and key stakeholders to get at every angle.
The power of SWOT.
If you want to get perspective from every angle, internal and external, utilize a SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats. The former two tend to be internal while the latter two are external. Strengths and weaknesses help zero in on performance. Examining strengths and weaknesses allows the company to form contingency plans and take advantage of positive situations. Along with this you may want to consider strategizing using another acronym, PEST: the analysis of political, environmental, social, and technological trends.
Three types of strategies.
Once you have your big picture and SWOT analysis done, the last layer is figuring out which type of strategy will work best for you.
- Low-cost: Offering a product or service at a lower price than a competitor/making customers believe that is the case. Examples: Target, Walmart
- Differentiation strategy: Basically, this helps you stand out from your competition by offering something different (obviously), such as the low-cost option or an added value to counter higher prices. Examples: Volvo offers excellent safety, Toyota Prius offers hybrid technology for better gas mileage.
- Customer relationship management strategy: This strategy builds on excellent customer service, building loyalty and preference using some sort of value-added measure to offset higher prices, including very personalized or customized services and building an ongoing relationship with customers. Examples: The Ritz-Carlton has excellent quality service that makes its high prices worth paying, Amazon makes it easy for customers to reach a person who will replace or refund a purchase easily with little hassle.
Creating a strategic plan is akin to having a clear set of directions in the wilderness: Without them, you’re simply wandering in the woods, hoping to find a path toward your destination. To find quality staff who will best implement your company’s plan, visit PrideStaff.