Knowing where to play and how to win are critical decisions for a business. But it’s made a lot easier when you have a clear purpose and vision. The challenge is to actually make these decisions and act on them.
Business owners choose to play in markets for different reasons. For established businesses, it’s often a legacy issue – the business was originally set up to operate that way. For early stage businesses, it’s typically about survival – had a good idea or saw a need, tried to get customers on board, and then ended up in that part of the market.
To build a valuable business, you have to play in markets that are attractive in terms of growth, competition and innovation opportunities. Understanding external factors that are shaping industries is key because it explains industry dynamics and where potential opportunities and threats may emerge. Gaining insights into different customers helps identify the right customers to serve. The question is whether you have the capability to win.
The decision about how to win involves exploring how you can cocreate value with customers, suppliers, and channel partners in ways that are mutually beneficial. It’s a collaborative process that results in new business models that are difficult for competitors to copy or imitate.
Last week, business owners revisited their business strategy, how their business operates, and why it has been set up that way. Challenging assumptions is important for fine-tuning a business. But more importantly, it provides the impetus for innovating your strategy and business model.
#strategy #businessmodel #valuecocreation