Friday 26 June 2009

Extreme Medicine?

Great leaps in productivity often come from bankruptcy - one of the very rare moments when companies are forced into a fundamental rethink, with little time to spare…

The current recession represents a similar Threat, or Opportunity!
These extremes allow us the political freedom to jettison most of the baggage, make a fundamental review of all of the business basics, from a totally fresh point of view, and starting at the right place:

Opportunities: only four ways to grow a business (See Ansoff Matrix above)
1. Selling more of the current product to current consumers/customers
2. Selling new product to current consumers/customers
3. Selling current product to new consumers/customers
4. Selling new products to new consumers/customers

(No need to waste time looking for additional ways)

Threats: apart from recession, the potential constraints on your business include
- Regulatory/Legal/Political developments
- Cultural/Social change
- Technological change
- Trade concentration/power/internationalisation
- Competition (innovation/substitution/wealth/risk-policy)

Strengths: How good are you vs competition in consumer/customer eyes, on
- Brands
- Money and financial backing
- Marketing Personnel
- Sales Personnel
- Production facilities
- Research & Development
- Logistics facilities (outsourced help)
- Agency network
- Back-up systems and tools

Weaknesses are simply 'negative' strengths that dilute your ability to capitalise on the opportunities...

Nothing else matters, at all…..

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