Define Business Strategy- Business Value Approach/Business Strategy

It’s time to create your company’s blueprint to success! Start by referring to the chart in my prior blog posting “Working Smarter Not Harder" http://envisionstrategizesucceed.blogspot.com/2011/07/blog-post.html

Let’s focus in on Step 1: defining your business strategy. In order to capture your target market you need to first define your “Business Value Approach”. That means how does your company stand out from its competitors? What does your company’s product offer that your competitor’s product does not? How do you differentiate your company from the others?

Let’s briefly review Michael Porter’s four “Generic” Business Strategies:

http://tutor2u.net/business/strategy/competitive_advantage.htm

I would like to talk about differentiation since this tends to be the direction for most small and medium sized companies.  Attractiveness in the industry in which it operates is a determinate in profitability. In today’s changing economy positioning is everything and a firm that is optimally positioned can generate superior returns. Leverage your strengths, and ensure differentiation by having: access to leading scientific research, highly skilled and creative productive development team, strong sales team and ensuring quality and innovation. As a result your consumers will value a product/service that is unique and more desirable.  Focus on a wider range of product development strengths to a narrow geographic market, and your firm will earn an above average return on investments.  All the while satisfying small groups priced at premium. Many firms who use this strategy have high degrees of customer loyalty, which discourages other companies from competing directly.
How do you differ from your competition? 
What makes your product/service superior to other in the industry? 
Differentiate to compete!