Today’s post comes courtesy of freelance business analyst and engineer Marlin
If a business is looking to make its mark in an already flooded market, it is likely that it needs to reevaluate it vantage point. All good businesses are open to evolution in a bid to find a niche that they can dominate. It is this kind of thinking that is referred to as strategizing. It helps to make sure that the business is well positioned to have the best possibility of luring the customers. [Editor's note: You might also want to check out our article on proven ways to respond to competitive threats]
There are certain tips that make this a reality. They include:
Establish strong market bonds
One of the ways in which the business can align itself strategically is by identifying the need in the market and thereby supplying it. This needs to be well researched, thought out and captured by way of design. Thereafter, there needs to be ways to modify it to suit an even greater majority of the population. This is what is often known as nurturing the market.
Seek to cut costs and increase profit margins
From the onset, a business should never have its returns channeled towards the running of the business more than is being retained in profits. There should be ways designed to reduce costs such as shipping already manufactured goods thereby cutting down on production costs. In all aspects, the ratio should be in favor of the profit margins growing larger.
Balance the investments
One of the key ways in which companies are seeking to carry out business may be having off shore investments whereby the production aspect is moved completely to other countries. However, by seeking to maintain some of the production, there is a possibility that the efficiency will greatly be increased and thereby more sales be generated.
Capitalize on the offshore markets
Much as the production has been delegated to the overseas centers, these too are places in which to market and seek to establish a niche. Often times the very products being manufactured there by the main onshore companies find their products being preferred and purchased as well by the same off shore markets. This means that the planning in the companies needs to reflect this market niche as well.
Whereas there are some profits to be made from having a wide variety of products to highlight, there could be more to both save and profit from in trying to limit the items being produced so that only a selected range is maintained and manufactured consistently. In this case, the quality is improved and more easily guaranteed as only a smaller range of products is being made.
Sometimes in seeking to empower the resources within, the greatest returns can be received from the company. From regular trainings to creation of flow charts that explain the step-by-step processes in each wing of the organization, it could be possible to greatly educate staff on the standard procedures and have them increase the quality of the end product.
There is need to always make sure that, whether it is the target audience or the potential audience, the information regarding the company, its values and activities is kept in the public domain. Consider being involved in humanitarian programs that could help create awareness about the company even among circles that ordinarily would not have known about it.
Being strategic is all about position. Once a company sets itself in the right place, it has won half the battle because this means is has established what it needs to give to the market as well as the right market to give it to. Every business will find that it regularly needs to review its strategy based on the profits, the market trends and the consumer base.
About the Author
Marlin is a mechanical engineer who doubles as a freelance business analyst in the local dailies. He is currently writing a story on the various systems like vibration isolation, which production plants operate on and how this contributes to the overall profitability of a company.