Many thanks for the interesting article. In general, I agree with your considerations, but experts who advocate focused strategic approach always forget to mention that this approach is also very risky.
In theory it looks perfect:
1. Find your core customers
2. Identify their needs
3. Build a product that satisfies these needs better than those of your competitors
4. Enjoy your profits.
But there is a pitfall here. Or, rather, a number of pitfalls.
1. Finding these customers is much more difficult than it may seem
2. If you make a mistake, it may destroy your business. Thousands of startups and businesses who have closed their doors have a lot to tell us about that. m
3. Finding these customers, identifying their needs and building a perfect product for them will take years.
4. If we stick to the focused strategy, we become vulnerable. As soon as a competitor who can somehow offer more value to our customers than we can emerges, we are dead.
So, different situations require different approaches, and we need to stay flexible. Though, it doesn't mean, of course, that we should try build a product for everyone and add every feature our customers ask for to our solution.
In the mid June, I will be happy to send you a copy of my book in which I delve into the matter, and will be happy to hear your feedback.
Many thanks for the interesting article. In general, I agree with your considerations, but experts who advocate focused strategic approach always forget to mention that this approach is also very risky.
In theory it looks perfect:
1. Find your core customers
2. Identify their needs
3. Build a product that satisfies these needs better than those of your competitors
4. Enjoy your profits.
But there is a pitfall here. Or, rather, a number of pitfalls.
1. Finding these customers is much more difficult than it may seem
2. If you make a mistake, it may destroy your business. Thousands of startups and businesses who have closed their doors have a lot to tell us about that. m
3. Finding these customers, identifying their needs and building a perfect product for them will take years.
4. If we stick to the focused strategy, we become vulnerable. As soon as a competitor who can somehow offer more value to our customers than we can emerges, we are dead.
So, different situations require different approaches, and we need to stay flexible. Though, it doesn't mean, of course, that we should try build a product for everyone and add every feature our customers ask for to our solution.
In the mid June, I will be happy to send you a copy of my book in which I delve into the matter, and will be happy to hear your feedback.
Thank you once again for intresting articles!
These are all excellent points, Svyatoslav - very thoughtful.
Your pitfalls list shows you've lived this through deep personal experience.
The approaches can change, but the underlying principles are the key:
Strategy as a problem-solving framework
Client-centricity is our foundation
I very much look forward to reading your book and what you see working with your clients.