![[object Object],[object Object],[object Object],[object Object],Chapter 7 7-](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommandé
Contenu connexe
Tendances
Tendances (19)
Similaire à 7 Small Business Strategies: Imitation with a Twist
Similaire à 7 Small Business Strategies: Imitation with a Twist (20)
Plus de Introbus110
Dernier
Dernier (20)
7 Small Business Strategies: Imitation with a Twist
- 1. 7 Small Business Strategies: Imitation with a Twist McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
- 3. Chapter 7 The Small Business Strategy Process 7-
Notes de l'éditeur
- Think about strategy in terms of football. The plays you run depend on the down, yards to go, strength and skills of your players, current score, time left in the game, and how you think the competing team will react. A strategy which works for one team will not necessarily work for another. However, a strategy is important. No good coach would show up to a game without his playbook.
- Each stage is discussed in further detail.
- Your first step is deciding what you are going into business to do. For example: I want to build a better mousetrap. This puts you in the extermination industry.
- Trade associations often have magazines, conventions, websites, and other resources available to help businesses in their industry. Sometimes companies may band together to perform functions. For example: In the sporting goods industry it is not uncommon for stores to band together to purchase items in larger quantities to be able to purchase from the manufacturer. Contacts are used in this process and store do not normally compete in the same geographic region. The Dairy Farmers of America band together for the “Got Milk” campaign which promotes the product but not a specific brand.
- Your potential market is anyone who could have a use for your product but who has not yet purchased. Your market is made up of those who purchase that type of product. Your target market is the subgroup you choose to focus on. Mass markets are everyone in the population. Coca-Cola mass markets to the entire US. Niche markets are small often underserved markets of people with a similar need and who act or purchase in similar ways. The scope of your market merely refers to how geographically large your market is and is outlined on the next two slide.
- 3 Rules for Niche Marketing Niche marketing can be extremely cost-effective Niche marketing can be a low risk way to grow your business following 3 rules: Meet their unique needs Say the right thing Always test-market
- Often, industry analyses can be purchased from trade organizations or market research firms.
- Many of the basics can be found through simple online searches. While profitability may not be found quite so simply, the methods by which profits and sales are made come out in interviews with executives or articles on the industry.
- A key to succeeding in business is knowing what your customer wants and how to provide it to him or her at a profit. Some benefits may be possible to add but may also lower your profits. Add the benefits that customers will be willing to pay more for. For example, people pay more for leather seats in their car, or a DVD player.
- Some benefits to a customer are direct product features, others are services offered along with the purchase. Benefits can also come by saving customers time, money, or frustration.
- There are several situations during which you can enter a market. If there is currently a shortage of market supply, you can offer your alternative or substitute to fill the demand. If there are resources which could be used more efficiently, or to make a better product, this gives you an advantage coming in. Contracting with customers who currently use this type of service locks them in to your service. For example, contracting with a heating and A/C company to provide routine maintenance. Some companies like to have a primary supplier, but during busy times may need a secondary supplier. You can start as a secondary supplier but through superior offering, pricing, or service become their primary supplier. Other times a conglomerate may be willing to ‘give up’ a small niche market which you may be better able to serve. Government bids often give an advantage to women or minority businesses. So make sure they know you are one. Whatever your advantage is, make the most of it.
- Each of the four are discussed in turn. Strengths and weaknesses are internal to the company. Opportunities and threats come from outside the company.
- These are seven strategies which are unique to small businesses due to the nature of being small. Being able to customize quickly and well doesn’t happen when your machinery is best set for runs of 1,000 or more. Additionally large companies with thousands of customers cannot possibly know them all by name and provide individual service and support. Nor can they provide to the high class, high-end elite. Some customers value things simply because they are unique and not everyone bought one at Wal-Mart. They like to dress differently, show off their brands, and be above others because they have someone you can’t.
- Your competencies are what you do well. It may be you as a person, or you as a firm. Vermont Teddy Bear took a well made bear, and offered a unique customized service to create the Bear-Gram which is loved the country over. Botht the product and service side of the bear-gram are high quality, unique, desired, and thus profitable.
- When evaluating resources for use, whether it is a financial resource, marketing resource, or product component, it is important to ask four questions. If the test fails at any level, then the resource is truly not of value to the organization.