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Articles
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Does your Business have
20-20 Vision?
For businesses to adapt and succeed in today’s volatile and
changing environment, having a vision or a strategy for the
future is crucial.
For small to medium sized businesses (SMEs), this is even
more relevant and is often the reason why so many SMEs
struggle and fail.
Statistics show that more than 60% of SMEs do not have a
business vision or strategy. Some SMEs argue that they are
successful without a strategy.
John de Blonk Smith, partner from AW Munro & Co, says it is
critical that businesses first have a strategy, and second
have one that evolves.
“A business strategy must change, because the world changes.
In business, if we stand still, we perish,” John says.
There are two different levels of a business strategy:
• Corporate strategy—for the whole organisation
• Competitive strategy—for individual products and services.
Corporate Strategy
A business’s corporate strategy focuses on growth. It
considers the lifecycle of products and services and the
business’s current market position. Ask yourself some of
these questions:
• Are you selling a new or existing product or service in a
new or existing market?
• Is there opportunity for business growth if your business
sells a new product or service in an emerging market?
• Is your growth restricted if you sell an existing product
or service in an established market?
“Both the product life cycle and the market will effect your
strategies for growth,” John says.
“But the fundamental question to ask yourself is whether you
are in the right place at the right time.”
Competitive Strategy
A business’s competitive strategy depends on the cost of
supplying a product or service (is it high or low) and the
business’s ability to differentiate the product or service
from competitors.
“SMEs should focus on product differentiation, rather than
cost leadership,” John said.
“The advantage that SMEs have over larger businesses is they
have the time and flexibility to tailor products and
services to fit the needs of the market or the customer.”
If you would like assistance to develop a vision or a
strategy for your business, and plan for the changing
future, please talk to John de Blonk Smith or Mark Burnham.
Often, an independent consultant with a fresh perspective on
your business, and knowledge of your products, services, and
environmental influences is just what you need to
effectively plan for a changing world.
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