Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

• Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

• Influencing the balance – take the offensive, for
  How to Critique Your Own Yellow Page Ad
  Forget what you know about your business Your goal is to see your Yellow Page display advertisement the way a directory user sees it. You can’t act like you know anything about your enterprise that isn’t there, on the page. Look at your ad without pride or being identified with your operation. If you pretend it’s someone else’s, you can spot the flaws you’d otherwise overlook. Mentally put the competition’s name on your ad. Does what you say apply equally well to them? If it does, you haven’t effectively set yourself apart.When all the ads seem alike buyers think they can get the same thing from any of them (and are more likely to select by price). The goal isn’t just to look different, but to actually be different in ways customers notice and care about. Does the ad provide the facts readers and callers need? Directory users have already decided to buy something. So they’re looking in the Yellow Pages to find who provides it. This is the educational phase of the bu
  People will always stress that having a well researched business plan is key before you start your business. Although creating a business plan is often an important step in the evolution of a business, particularly if you need financing or you are not experienced at running a business, it is not necessarily the essential first step. There are two key elements that should be completed prior to the business plan:

  • The business model

  • The strategy

  What is a Business Model?

  While the word model often stirs up images of mathematical formulas, a business model is in fact a story of how a business works. In general terms, a business model is the method of doing business by which a company can generate revenue. Both start-up ventures and established companies take new products and services to the market through a venture shaped by a specific business model. In their paper, The Role of the Business Model in Capturing Value from Innovation, Henry Chesbrough and Richard S. Rosenbloom outlined the six basic elements of a business model:

  1. Articulate the value proposition – the value created to users by using the product

  2. Identify the market segment – to whom and for what purpose is the product useful; specify how revenue is generated by the firm.

  3. Define the value chain – the sequence of activities and information required to allow a company to design, produce, market, deliver and support its product or service.

  4. Estimate the cost structure and profit potential – using the value chain and value proposition identified.

  5. Describe the position of the firm with the value network – link suppliers, customers, complementors and competitors.

  6. Formulate the competitive strategy – how will you gain and hold your competitive advantage over competitors or potential new entrants.

  Joan Magretta in her article Why Business Models Matter took the concept of the business model a little further. Magretta suggests every business model needs to pass two critical tests, the narrative test and the numbers test. The narrative test must tell a good story and explain how the business works, who is the customer, what do they value and how a company can deliver value to the customer. The numbers test means your profit and loss assumptions must add up. At the most basic level, if your model doesn’t work, then your model has failed one of the two tests.

  To begin the modeling process you need to articulate a value proposition on the product or service being provided. The model must then describe the target market. The customer will then value the product on its ability to reduce costs, solve a problem or create new solutions. A market focus is needed to identify what product attributes need to be targeted and how to resolve product trade-offs such as quality versus cost. You also need to identify how much to charge and how the customer will pay.

  Think of business modeling as the managerial equivalent of the scientific method - you start with a hypothesis, which you then test in action and revise when necessary. The business model also plays a part of a planning tool by focusing managements on how all the elements and activities of the business work together as a whole. At the end of the day, the business model should be condensed onto one page consisting of: a diagram outlining how the business generates revenue, how cash flows through the business and how the product flows through the business and; a narrative describing the product/ service components, financial projections or other important elements not captured in the diagram.

  Business Models and Strategy

  It is important to note that completing a business model does not constitute strategic planning. Strategic planning factors in the one thing a business model doesn’t; competition.

  What is strategy?

  According to the Collins English Dictionary, strategy is “a particular long-term plan for success”. For our purposes, we will consider the essence of strategy as a formula for coping with the competition. Competitive strategy is about being different and the goal for a corporate strategy is to find a position in the industry where the company is unique and can defend itself against market forces. To do this the company must choose a set of activities that can deliver a unique mix of value.

  Market Forces and Strategy

  The determination of a strategy is rooted in determining how a company stacks up against basic market forces, how it can defend itself against these forces and how it can influence these forces. Fortunately, Michael E. Porter in his article How Competitive Forces Shape Strategy defined these market forces for us. Known as Porter’s 5 forces they consist of:

  1. The industry – this is the jockeying for position among current competitors, this can consists of price competition, new product introduction or advertising slugfests.

  2. The threat of new entrants - the seriousness of the threat of entry depends on the barriers to entry and reaction from existing companies. There are 6 major barriers to entry: 1) economies of scale 2) product differentiation 3) capital requirements 4) cost disadvantages independent of size 5) access to distribution channels 6) government policy. A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

  3. The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

  4. The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

  5. The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

  Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

  • Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

  • Influencing the balance – take the offensive, for
    Absence Makes the Heart Grow Fonder
    However, in the world of business, this clich? may not necessarily be true. Sometimes it can be more like ‘Out of Site, Out of Mind’.Your existing clients are your most important business assets. They are already aware of the exceptional products or services that you provide and you have already built a trust with them.These happy clients will be the first to recommend you and your business to others that may be in need of your services or products. It is essential to build a lasting relationship and keep in touch with these influential people…keep your name fresh in their minds. They have become ‘business friends’ and what kind of friend would you be if you didn’t stay in touch.There are several ways to build a loyal and lasting relationship with your clients, besides the exceptional customer service and support that you are already providing. You need to set yourself apart from the competition and give customers something that will keep your business
    Define the value chain – the sequence of activities and information required to allow a company to design, produce, market, deliver and support its product or service.

  • Estimate the cost structure and profit potential – using the value chain and value proposition identified.

  • Describe the position of the firm with the value network – link suppliers, customers, complementors and competitors.

  • Formulate the competitive strategy – how will you gain and hold your competitive advantage over competitors or potential new entrants.

    Joan Magretta in her article Why Business Models Matter took the concept of the business model a little further. Magretta suggests every business model needs to pass two critical tests, the narrative test and the numbers test. The narrative test must tell a good story and explain how the business works, who is the customer, what do they value and how a company can deliver value to the customer. The numbers test means your profit and loss assumptions must add up. At the most basic level, if your model doesn’t work, then your model has failed one of the two tests.

    To begin the modeling process you need to articulate a value proposition on the product or service being provided. The model must then describe the target market. The customer will then value the product on its ability to reduce costs, solve a problem or create new solutions. A market focus is needed to identify what product attributes need to be targeted and how to resolve product trade-offs such as quality versus cost. You also need to identify how much to charge and how the customer will pay.

    Think of business modeling as the managerial equivalent of the scientific method - you start with a hypothesis, which you then test in action and revise when necessary. The business model also plays a part of a planning tool by focusing managements on how all the elements and activities of the business work together as a whole. At the end of the day, the business model should be condensed onto one page consisting of: a diagram outlining how the business generates revenue, how cash flows through the business and how the product flows through the business and; a narrative describing the product/ service components, financial projections or other important elements not captured in the diagram.

    Business Models and Strategy

    It is important to note that completing a business model does not constitute strategic planning. Strategic planning factors in the one thing a business model doesn’t; competition.

    What is strategy?

    According to the Collins English Dictionary, strategy is “a particular long-term plan for success”. For our purposes, we will consider the essence of strategy as a formula for coping with the competition. Competitive strategy is about being different and the goal for a corporate strategy is to find a position in the industry where the company is unique and can defend itself against market forces. To do this the company must choose a set of activities that can deliver a unique mix of value.

    Market Forces and Strategy

    The determination of a strategy is rooted in determining how a company stacks up against basic market forces, how it can defend itself against these forces and how it can influence these forces. Fortunately, Michael E. Porter in his article How Competitive Forces Shape Strategy defined these market forces for us. Known as Porter’s 5 forces they consist of:

    1. The industry – this is the jockeying for position among current competitors, this can consists of price competition, new product introduction or advertising slugfests.

    2. The threat of new entrants - the seriousness of the threat of entry depends on the barriers to entry and reaction from existing companies. There are 6 major barriers to entry: 1) economies of scale 2) product differentiation 3) capital requirements 4) cost disadvantages independent of size 5) access to distribution channels 6) government policy. A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

    3. The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

    4. The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

    5. The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

    Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

    • Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

    • Influencing the balance – take the offensive, for
      10 Ways To Work Through A Business Slowdown
      In running any kind of business, it's inevitable that sometimes business will slow down. This might occur due to an upcoming holiday, seasonal variations, or uncontrollable circumstances. As a small-business owner, you have a choice in terms of how you view the slowdown - it can either be a time of increased stress, frustration, worry - or you can view it as an opportunity to upgrade your business processes or improve the quality of your life.Here are ten strategies you can use to work through a business slowdown:1) Market more concertedly. Statistics suggest that new businesses spend (or should spend) about 40-60% of time in marketing and related activities. If you are experiencing a business slowdown, it's always a good time to create and launch another marketing initiative. It is important to continue to promote your business creatively and cost-effectively. What better way to spend a slow period than in taking actions to attract new business? (Plus, taki
      product on its ability to reduce costs, solve a problem or create new solutions. A market focus is needed to identify what product attributes need to be targeted and how to resolve product trade-offs such as quality versus cost. You also need to identify how much to charge and how the customer will pay.

      Think of business modeling as the managerial equivalent of the scientific method - you start with a hypothesis, which you then test in action and revise when necessary. The business model also plays a part of a planning tool by focusing managements on how all the elements and activities of the business work together as a whole. At the end of the day, the business model should be condensed onto one page consisting of: a diagram outlining how the business generates revenue, how cash flows through the business and how the product flows through the business and; a narrative describing the product/ service components, financial projections or other important elements not captured in the diagram.

      Business Models and Strategy

      It is important to note that completing a business model does not constitute strategic planning. Strategic planning factors in the one thing a business model doesn’t; competition.

      What is strategy?

      According to the Collins English Dictionary, strategy is “a particular long-term plan for success”. For our purposes, we will consider the essence of strategy as a formula for coping with the competition. Competitive strategy is about being different and the goal for a corporate strategy is to find a position in the industry where the company is unique and can defend itself against market forces. To do this the company must choose a set of activities that can deliver a unique mix of value.

      Market Forces and Strategy

      The determination of a strategy is rooted in determining how a company stacks up against basic market forces, how it can defend itself against these forces and how it can influence these forces. Fortunately, Michael E. Porter in his article How Competitive Forces Shape Strategy defined these market forces for us. Known as Porter’s 5 forces they consist of:

      1. The industry – this is the jockeying for position among current competitors, this can consists of price competition, new product introduction or advertising slugfests.

      2. The threat of new entrants - the seriousness of the threat of entry depends on the barriers to entry and reaction from existing companies. There are 6 major barriers to entry: 1) economies of scale 2) product differentiation 3) capital requirements 4) cost disadvantages independent of size 5) access to distribution channels 6) government policy. A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

      3. The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

      4. The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

      5. The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

      Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

      • Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

      • Influencing the balance – take the offensive, for
        Logistics Solutions
        Logistics solutions include planning, implementing and controlling the functions of inventory, warehousing, transportation and distribution. It consists of all software systems and activities that enable a company to transfer raw materials and finished goods from point A to point B.A fourth-party logistics provider designs the logistical blueprint of an organization and provides customized computer software. Logistics solutions aim at atomizing the various components of the production, transportation and distribution. It enables an organization to improve efficiency and cut costs.Inventory management involves the use of scientific methods and systems such as Last in, First out (LIFO), First in, First out (FIFO), Just in Time (JIT) and Re-order quantity (ROQ). These methods save time, money and reduce spoilage. An efficient transportation system enables the transfer of raw materials to production sites and finished goods to places of consumption. Warehousing a
        n for success”. For our purposes, we will consider the essence of strategy as a formula for coping with the competition. Competitive strategy is about being different and the goal for a corporate strategy is to find a position in the industry where the company is unique and can defend itself against market forces. To do this the company must choose a set of activities that can deliver a unique mix of value.

        Market Forces and Strategy

        The determination of a strategy is rooted in determining how a company stacks up against basic market forces, how it can defend itself against these forces and how it can influence these forces. Fortunately, Michael E. Porter in his article How Competitive Forces Shape Strategy defined these market forces for us. Known as Porter’s 5 forces they consist of:

        1. The industry – this is the jockeying for position among current competitors, this can consists of price competition, new product introduction or advertising slugfests.

        2. The threat of new entrants - the seriousness of the threat of entry depends on the barriers to entry and reaction from existing companies. There are 6 major barriers to entry: 1) economies of scale 2) product differentiation 3) capital requirements 4) cost disadvantages independent of size 5) access to distribution channels 6) government policy. A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

        3. The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

        4. The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

        5. The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

        Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

        • Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

        • Influencing the balance – take the offensive, for
          THE Silver Bullet in Sales - Yes Virginia There is a Silver Bullet
          Some people will tell you that in sales there is no such thing as a silver bullet. I can tell you that there is. It is called timing — getting in front of the right buyer at EXACTLY the right time. Research shows that the average sales person is five times more likely to make a sale when they have the right timing.Event-Based Selling is a way to make timing happen. Read on if you want to learn how to make timing happen and repeatedly get in front of the right buyers at exactly the right time.Buying ModesTo master timing you need to understand that, no matter what you sell or to whom, buyers are always in one of three Buying Modes:1. Status Quo: Status Quo is when a buyer perceives the product or service they are currently using meets, or exceeds, their needs.2. Window of Dissatisfaction: A Window of Dissatisfaction occurs after a buyer realizes that their current solution no longer meets their needs but before they start the process of
          t policy. A new company will generally have second thoughts about entering an industry if the incumbent has substantial resources to fight back, the incumbent seems likely to cut prices or industry growth is slow.

        • The threat of substitute products/services - substitutes can place a ceiling on prices that are charged and limit the potential of an industry.

        • The bargaining power of suppliers - suppliers can squeeze profitability by increasing prices or lowering the quality of the goods.

        • The bargaining power of buyers (customers) - customers can force down prices, demand better quality, more service or play competitors off on each other.

          Once you assess how the market forces are affecting competition in your industry and their underlying causes, you can identify the underlying strength and weaknesses of your company, determine where it stands against each force and then determine a plan of action. Plans of action may include:

          • Positioning the company – match your strengths and weaknesses to the company’s industry, build defenses against competitive forces or find a position in the industry where forces are the weakest. You need to know your company’s capabilities and the causes of the competitive forces

          • Influencing the balance – take the offensive, for example innovative marketing can raise brand identification or differentiate the product.

          • Exploiting industry change – an evolution of an industry can bring changes in competition. For example, in an industry life-cycle growth rates change and/or product differentiation declines; anticipate shifts in the factors underlying these forces and respond to them.

          The framework for analyzing the industry and developing a strategy provides the road map for answering the question “what is the potential of this business?”

          Reconciling the Business Model and Strategy

          I will use a short example to illustrate the difference between a business model and strategy. Although you may think that Wal-Mart pioneered a new business model on its road to success, the reality is that the model was really no different than the one Kmart was using at the time. But it was what Sam Walton chose to do differently than Kmart, such as focusing on small towns as opposed to large cities and everyday low prices, that was the real reason for his success. Although Sam Walton’s model was the same as Kmart's, his unique strategy made him a success.