It should come as no surprise to notice the fact that there are basically hundreds of books that are written about business strategy and thousands of online articles about the topic. Creating a very effective strategy is basically vital for the success of a company, be it small or large. If you want to create that perfect strategy, here are some of the common business strategy mistakes that aspiring business owners make, according to specialist Marty Hale.
Competing With The Best And Thinking You Will Do Things Better
Let’s say that you want to open a soda manufacture company. You have the recipe and the product is pretty good. Thinking that you will be able to succeed in making clients buy your soda instead of something from Coca Cola would be a true disaster.
There are many managers that are going to confuse strategy with operational effectiveness. When you do exactly what another company does and you expect to bring in better results because of whatever reason, you set yourself up for failure.
Confusing Strategy With Marketing
Contrary to popular belief, marketing is not the same thing as business strategy. Great business strategies are almost always going to appear because of being focused on the needs of the customers. Strategy will be created around value proposition, which is simply on the equation’s demand side. A really strong strategy needs a well-built value chain. This includes supply, value and activity configuration. You will never be able to have a true competitive advantage if you do not have a strategy built out of a combination of value chain and unique choices.
Overestimating The Company’s Strengths
In most organizations we see inward-looking bias. For instance, the company may think that customer service stands out as the strongest area of business operations. That makes the business managers think that this is the real strength that has to be the foundation of the strategy. A really good strength when looking at business strategy is basically something that is connected with the company, something that is done a lot better than what the competition offers. Overestimating strengths lead towards that situation in which the strategy is guaranteed to fail.
Why Are Business Strategies Built Wrong?
The examples that were mentioned above are definitely some of those that are very common at the moment. However, it is really important that we also think about why the strategy problems appear in the first place.
In many cases we see that there is a clear problem with analyzing the competitors and the industry. That is definitely appearing because of poor data analysis or lack of analysis. In other cases we see that the big problem is connected with maintaining strategies and making the right modifications.
The Professional Approach
There is a reason why there are business consultants and strategic planners out there. If you see that the company does not grow or does not bring in as much profit as it should, you have to seriously consider hiring a professional that is going to help you build a proper business strategy and stick to it.