Category: Strategy
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Why: We want to maximize the survival likelihood and our organization’s performance with the positioning strategy.
At Wasu.blog, we strive to build a brand voice that helps our customers identify and relate to us. We want our content to be memorable and meaningful, establishing strong connections with our target audience. Keywords like trust, reliability, innovation, affordability, expertise will help enhance the effectiveness of our positioning strategy and boost its survival likelihood in the marketplace. By creating compelling content with these keywords at its core, we can ensure our organization’s performance in achieving its objectives while staying true to who we are as a brand. Let’s keep striving for success together!
To find a market segment that is good, and align with company’s capabilities, to draw out advantages.
In a flash, here is how you do it!
Table of Contents
In Short
The problem is that we are not good at choosing the right products to own. As a result, we are optimistic about additional products and spread our focus and resources too thin.
Anything is related to just about anything else.
But imagined energy is much more common that real energy.
1. Align Resources and Organization
By aligning your resources/capabilities with organization design, you will benefit from synergy automatically. This is because they work together and not against each other.
- Capabities: How to expand or re-purpose our capabilities?
- Organization: How much is the effort to commonalize organization and processes?
The reason to have a products portfolio is to have synergy.
2. Allocate Capital
It is fierce competition out there; you must maximize the utility of capital by minimizing your opportunity cost at all times. So here are questions to allocate money effectively.
- Can new product utilize existing/common resources, better than the market?
- Why must the project use internal funds and not from the market as a separate entity?
Financing constraints
If you are facing problems with fundraising, here are some bottlenecks you should check.
- Difficult to understand due to the complexity of the business model
- Asymmetric information between managers and investors
- Businesses without tangible assets like data that no one can assess expected return. Remind yourself if you have a “Winner curse.”
BCG Portfolio Matrix
Reference: bcg.com/growth-share-matrix
This matrix gives a direction to your capital allocation in 4 ways.
- Milk your cash cows to reinvest.
- Invest more in stars to capture potential success.
- Discard business questionmarks with clear criteria.
- Reposition pets end of life products.
3. Diversify Opportunity
Two standard tests are the Attractiveness test of the industry and the Cost of Entry test.
We suggest you also do the Better-off test. Here, you are looking forward to diversifying your existing portfolio to add more value to the company.
A common mistake is thinking too positively and adding unsustainable businesses or products. The key is always synergy between resources and organization.
Conclusion
We should
- Use market intelligence to predict and increase WTP (Willingness To Pay).
- Use internal cost cuts to optimize internal resources.
- Find niche blue ocean business opportunities to both increase WTP and reduce cost!
And the last point can only be made when we position our capabilities and organization for synergy!
Know you and know who, battle 100 times, win 100 times.