3 Types Of Business Strategies To Consider For Your Organization

3 Types Of Business Strategies To Consider For Your Organization

You also need to know how to put these strategies into action

It’s not enough to understand what makes your customers value your products or services. You also need to know how to put the following 3 Types Of Business Strategies into action—especially if you’re a small business owner. Value-based strategies help small businesses because they make customers loyal to your brand and encourage you to create products that solve customer problems.

  • Driving Company Value Using Differentiation

You want to make your customers happy and loyal. You also want to stand out from your competitors. How do you do that? By creating value for your customers. 

Value is what makes your customers choose you over others. Value is what makes your customers come back for more. Value is what makes your customers tell their friends about you. By understanding what your customers need and want, and by delivering products or services that meet or exceed their expectations. That’s the essence of a value-based strategy. And it’s especially important for small businesses, because they have fewer resources and more challenges than big businesses. Drive your company value and grow your business when you differentiate yourself.

  • Focusing on Neglected Platform Participants

In Business Strategy, differentiation is not the only approach to consider, as focusing on the willingness to pay (WTP) of a consumer group that is not favored by a competing platform can also be effective. 

For large organizations with multiple customer groups and subsets, establishing an ideal customer profile (ICP) and differentiating their product can be challenging. Instead, targeting neglected customers who are dissatisfied with their current options can be a successful strategy. To achieve this, businesses should prioritize the fundamentals of a value-based strategy: research the target market, gather feedback to address pain points, and build trust with customers.

  • Catering to Small Groups of Customers

One potential strategy to explore is to target customers who place a high value on connection. This can lead to increased customer loyalty and advocacy, resulting in higher retention rates and word-of-mouth referrals. 

eHarmony, an online dating platform, is an example that shows customers’ willingness to pay is often influenced by the number of members each site has. An increase in membership can lead to more competition among users, making it harder for people to find a suitable match and decreasing the perceived value of the platform. For instance, Match.com has lower membership fees but a higher number of users, which can lower the perceived value of its services. In contrast, eHarmony caters to a smaller group of customers, reducing the likelihood of them experiencing too much rejection. As a result, eHarmony’s customers are willing to pay a premium for a higher chance of success, helping the business thrive.

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* Leads Resources can assist you in developing a program to help you re-evaluate your vendor relationships. Contact our team for more information.

5 Business Strategies Every Leader Should Understand

5 Business Strategies Every Leader Should Understand

Business leaders must take matters seriously and learn different strategies appropriate to the situations they face.

Many people think that businesses last for a long time, but new research reveals that 32% of public companies will disappear in 5 years. In fact, we will probably outlive the companies we work for. Businesses that want to survive and succeed need to change their strategic thinking. 

Business leaders must take matters seriously and learn different strategies appropriate to the situations they face.

  1. The Classical Approach (be the biggest), is the traditional analyze-plan-execute method, aims for a sustainable competitive advantage through scale or differentiation.
  2. The Adaptive Approach (be the fastest) is about reacting quickly to dynamic market conditions by constantly testing new ideas and quickly scaling up whatever works.
  3. The Visionary Approach (be the first) anticipates new business opportunities and is usually linked with start-ups, but nowadays, established companies must also be innovative to remain competitive.
  4. The Shaping Strategy (be the orchestrator) is about collaborating with other companies, often using a digital platform, to reshape an entire industry.
  5. The Renewal Strategy (be viable) is best used when a business is in jeopardy and needs to conserve its resources to fund the journey back to viability and growth.

As businesses expand their reach across multiple geographies or industries that are constantly evolving, CEOs must adapt and deploy effective strategies to remain competitive. The traditional approach of analyzing, planning, and executing is still relevant, but today’s business landscape requires a more nuanced and adaptable approach to succeed.

 

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* Leads Resources can assist you in developing a program to help you re-evaluate your vendor relationships. Contact our team for more information.

8 Digital Transformation Trends for Consultants

8 Digital Transformation Trends for Consultants

Consultants must be well-versed in digital transformation tools to remain competitive.<br />
Digital transformation has become a game-changer for businesses across the world, with hybrid work environments and remote communication now the norm. As a result, consultants must be well-versed in digital transformation tools to remain competitive. 

In 2023, we expect the following trends disrupting the consulting industry in 2023 and onwards.

  1. Remote Communication and automation tools will continue to thrive.
    Tools used to accelerate and automate transactions between consultants, clients, and the market will have higher demand. In-person and onsite transactions will only be considered as the last option especially when remote and other automation tools are available.

  2. Businesses Adopting a Lean Digital Transformation Strategy
    Efficient businesses with lean strategic, tactical, and operational improvements of organizations create more value for their customers with less cost. Lean offers a more efficient organization with larger growth and greater innovation even during a recession.

  3. Increased Demand for Expertise In Niche Areas
    The shift in focus from high-value short-term projects to longer-term strategy development makes the role of specialists more valuable and vital. They are especially in high demand in workplaces requiring a technical approach to operations and culture.

  4. Combine Your Niche With the Right Digital Solutions
    When technology is used correctly, it can help companies achieve their business goals and deliver measurable results. Leveraging the benefits of digital transformation requires creating a strategy, getting the input of stakeholders, and deeply understanding business needs.

  5. Clients’ ROI is often made with Sustained Margins
    The promise of Sustainable Return on Investment (S-ROI) is a rigorous financially oriented framework that combines well-established analytical techniques with a proven approach to collaboration and dialog. S-ROI identifies and weighs critical potential impacts of a proposal, and engages stakeholders in a process of non-adversarial analysis and optimization.

  6. Increased Demand For Automation and Technical Consulting Firms
    Automated decision-making, predictive analytics, machine learning, and codeless software will play major parts in creating strategy, alongside the need to streamline and automate repetitive administrative tasks in order to improve productivity and efficiency.

  7. Clients Will Seek Consulting Advice To Focus On Core Vs Non-Core Activities
    Organizations are having a fundamental rethink of the core/non-core issue, and that will have profound consequences for consultants and consulting firms in the future. “Core” activities are generally defined as strategic tasks that improve customer value and drive profits. “Non-core” activities are generally defined as day-to-day routine tasks that add little value and are not a profit center.
    The reason behind this shift to core activities is largely technology-driven: in the past, technology was up against the corporate wall, it was generally considered a non-core activity, handed over to third parties to deliver a better service for less. But today, technology is more likely than any other factor to be a core activity. This means that organizations  will increasingly rely on third parties to do core work.

  8. Digital Transformation for Core Consulting Activities
    To remain competitive, consultants must develop skills to deal with and adapt to the fast-evolving digital and technology market.  As more and more companies seek digital transformation, today’s successful consultants excel at highly adopted technological implementation – from project start to finish.

 

In 2023, we expect to see an increased demand for SMEs, lean digital transformation, niche expertise, digital solutions, ROI, strategic consulting, and a shift in focus from non-core to core activities. Consultants who can adapt to these trends and leverage technology to provide value to their clients will be at the forefront of the industry.

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* Leads Resources can assist you in developing a program to help you re-evaluate your vendor relationships. Contact our team for more information.

Turning Great Strategy into Great Performance

Turning Great Strategy into Great Performance

Establish some basic rules for setting and delivering strategy

Many companies spend an enormous amount of time and energy on strategy development, but often have little to show for their efforts. Research by consultancy firm Marakon Associates found that companies on average deliver only 63% of the financial performance their strategies promise.

To help address this issue, Michael Mankins and Richard Steele of Marakon draw on their experience with high-performing companies and establish some basic rules for setting and delivering strategy:

  1. Keep it simple and make it concrete.
  2. Debate assumptions, not forecasts.
  3. Use a rigorous analytic framework.
  4. Discuss resource deployments early.
  5. Clearly identify priorities.
  6. Continuously monitor performance.
  7. Reward and develop execution capabilities.

Companies can narrow the gap between strategy and performance by adhering to certain rules. Rather than providing lengthy workflows and lofty goals, it is recommended to use clear language that defines what the company will and won’t do. 

Implementing cross-functional teams that practice these strategies can ensure that assumptions that surface during the process reflect the true economics of the company relative to competitors. These steps can help companies create more realistic forecasts, develop executable plans, and improve their overall performance.

 

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* Leads Resources can assist you in developing a program to help you re-evaluate your vendor relationships. Contact our team for more information.