Other approaches[ edit ] The choice of competitive strategy often depends on a variety of factors including:
Review of external environment including an industry analysis Opportunities Threats Focus your strategic plan on capitalizing on the strengths and opportunities; managing the weaknesses; and dealing with or minimizing as much as possible the threats.
I conduct a SWOT analysis in my business annually. From time to time, I have asked a valued client to spend half an hour with me identifying what he or she feel are the strengths and weaknesses of the business.
This can be invaluable information to your strategic planning process; if you have a strong client relationship consider working closely with them to do a thorough, and somewhat more independent, SWOT review. Diversification marketing and growth strategy could also add action items beside each of the additional factors; strengths, threats and opportunities.
These might be ways to capitalize or leverage on those strategic elements. Most of the time, SWOTs do not include action items in that section of the strategic plan.
I like to include them in the SWOT, and then carry them into the Action Plan, because it reinforces what element of the analysis necessitates the action.
I have shown action items in the weaknesses section of the following sample SWOT analysis. I have found that by doing it this way more attention and understanding is focused on accomplishing the action plan. Internal This section looks at the strengths and weaknesses of the organization.
The goal is to manage and control the weaknesses and take advantage of the strengths. Strengths Our brand and reputation in our markets is strong. We are recognized as being professional, reliable and quality-driven. We have excellent employees who are well trained, customer oriented and efficient.
We have a relatively flat organization from bottom to top: We work on a continuous improvement operating model. We capitalize on slow business periods by cross-training employees and taking employees out to meet customers which helps us to develop more capable employees and gives the organization more depth.
We have built a strong human resources program at our company; this helps us hire, train and retain the best people. We pay attention to our costs and contain costs wherever possible but not at the expense of quality, safety or the environment. We have begun to pursue a market and product diversification strategy; this enables us to leverage our capabilities and minimize our costs and our risks.
Weaknesses We are not the low-cost or low-price supplier in the market. We need to continuously improve our productivity and efficiency to reduce cost. We are committing to a Lean process that is enterprise-wide and that will help us improve our efficiencies.
We need to build stronger relationships with our Top 5 Customers. Make our service commitments and if we fail, admit our mistake, apologize, and learn how to improve and not repeat mistakes! Cost of re-investment is high. All capital expenditures must be planned and must have an acceptable payback 18 months.
We have recently focused on a diversification strategy which has a cost to implement.
Focus on cost and resource synergies and ensure that all diversified products have a strong benefit to the organization as a whole. We are at risk if we lose one or more of our top 5 accounts. We need to build new business, new markets and new services to mitigate that risk. We also need to ensure satisfied existing accounts and continue to build strong relationships with our customers.
We have too many price levels for volume purchases. Conduct a pricing strategy review. Reduce the price levels to better fit the market and the products and services. Macroenvironment or external environment include an industry analysis:Marketing budgets ensure that your marketing plan or campaign is realistically costed.
Some pre-budget research into your industry and market, your competitors and your business's historical marketing metrics helps marketing managers make a more informed calculation. Diversification strategy is a form of growth strategy which helps the organizational business to grow.
It opens up new possibilities for the organization. By adopting this strategy, the organization not only diversifies its products offerings in the target markets but also expands its business horizons. Darren Dahl is a contributing editor at Inc.
magazine, which he has written for since He also works as a collaborative writer and editor and has partnered with several high-profile authors. Tools for Strategy Planning. Start with your SWOT (strengths, weaknesses, opportunities and threats) analysis. Add aspirations and results to the SWOT (some do SOAR (strengths, opportunities, aspirations, and results) as a separate activity) to ensure that your vision for your business is incorporated in your goals and objectives.
Apr 23, · There are many ways to successfully diversify your business, from taking a logical sequence of steps from the core business, to unconnected left of .
About the Ansoff Matrix. The Ansoff Matrix also known as the Ansoff product and market growth matrix is a marketing planning tool which usually aids a business in determining its product and market growth.