Strategy has always been the key building block of competition in the business world over the last three decades, yet in the coming years, the search for sustainable competitive advantage might well start with the company’s business model. While the earliest convergence of communication and information technologies in the mid-1990s led to a short-lived interest in business models based on corporate information management, forces like globalization, deregulation, and technology shifts, have all conspired to create an unprecedented opportunity to grow your business model into a true business strategy. Today’s global marketplace provides business with an unprecedented opportunity to extend its reach across multiple geographies, multiple industries, and multiple markets. But just as all that began to happen at warp speed, so has the onset of a new era of competitive advantage – one characterized by disruptive innovation, rapid investment, and an ever-demanding but highly competitive market.
Just as the dawn of the Information Age ushered in a dawn of unprecedented opportunities for companies to communicate and to respond, similarly, a new competitive era will usher in a new dawn of competitive threats. The dawn of the Information Age has given rise to a plethora of technologies, the majority of which were developed by venture capitalists with significant investments in research and development and consequently are priced at a level that makes them financially attractive. These technologies allow companies to leverage the collective power of the web to gain a foothold in markets where the traditional corporation has historically had a monopoly or major share of the market. The dawn of these new technologies, combined with an unraveling of the organizational framework, has created a situation where a business plan designed to address the day-to-day demands of the company can be transformed into a robust strategy to overcome future threats.
In order to address this new competitive challenge facing today’s corporation, it is important that business owners and managers to consider a wide range of options. Among the most effective alternatives are the “Tactic and tactic combinations” described by legendary entrepreneur and adviser, gey gong. According to gong, one of the most powerful yet underused weapons in any company’s arsenal is its “tactical versatility.” By utilizing the advantages inherent in today’s technology, strategic decisions pertaining to product positioning and advertising can be easily adapted to fit the changing needs of a targeted consumer base.
An example of a strategy utilizing tactic flexibility is found in the new wave of cloud-based software services. These services have enabled businesses to leverage their massive computer and network resources in ways never before possible. Using a cloud infrastructure, businesses can use a multitude of software applications and services from different providers, all operating in a cost effective manner. The advantage to this strategy is that businesses can leverage multiple options at a lower cost than would have been possible using traditional business models. In this instance, tactic flexibility allows businesses to gain a decisive advantage in a new and growing marketplace. Although cloud-based services may not provide an unrivaled level of performance, they certainly do offer significant cost savings and are easily adaptable to changing business needs.
Although some business plans may initially appear to favor one form of distribution, newer strategies and technologies will make it possible for a company to operate in multiple ways. One example of this is the use of mobile applications that allow customers to access point of sale terminals from anywhere. This enables businesses to expand into new markets without having to invest in additional infrastructure.
Strategies like these have also proven to be effective in increasing profit levels for small companies and home-based businesses. Direct sales companies have long existed, but they were typically associated with large companies. Today, direct sales businesses can be found everywhere. However, many businesses are still unaware of their exact role in any business plan, so it is best to discuss the details of your business model with a qualified consultant.
The final component of any business model is its customer base. The amount of sales and the number of individual transactions will determine the success or failure of the business model itself. While many companies make the mistake of assuming that all consumers are the same, it is important to understand that the needs of different types of buyers must be different. This is why many companies will share their customer information so that it can be used to create marketing campaigns that target a specific group.
Overall, an understanding of the key virtuous cycles will help companies improve their overall performance. Understanding the importance of building loyalty, generating a high level of customer value, and providing a competitive edge will help businesses achieve success. If you want to ensure that your company remains competitive, then it is important to take the time to consider all of the components of a good business model. By collaborating with a qualified consultant, you can help ensure that you create a company that is able to thrive in today’s market.