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Strategic Focus: Take a closer look

In today’s global business climate, companies can’t cruise along on autopilot when it comes to formulating marketing strategies. 

Instead, they need to view their competitive environment with particular clarity, a strategic focus ... then stake out and claim a position they can defend.

At bottom, strategic thinking involves two issues: the structure of your industry, and how it will evolve over time.

What’s the nature of your competition — is it subdued or warlike?

What about the likelihood of new entrants ... or the emergence of substitute products or services?

What’s the bargaining power of suppliers and buyers — who could greatly affect your own profit margins?

Based on the situation analysis you complete, what sort of strategic position can you claim? Your competitive advantage will likely fall into one of two categories: “lower cost-lower price,” or “differentiated product-higher price.”

Your most viable strategic positioning might turn out to be broad in scope — to serve essentially all customers in your market.

Or, the best approach could be to focus on a narrow range of customers and dedicate your marketing efforts to a smaller segment of the market.

A focused strategy will make some customers unhappy. But it’ll make other customers very, very happy. By serving your chosen customers well, you’ll strengthen your position ... as well as make it more difficult for competitors to encroach on your turf.


Contact Mullin/Ashley

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