Focus, focus, focus!!

Most of you will have heard of Porter's discussion on strategy (cited in Thompson Jr., Strickland III, & Gamble, 2007, Crafting and Executing Strategy: A Quest for Competitive Advantage, 15th edn, McGraw - Hill, NY.). The developed version of this work suggests that the generic strategies are low-cost, broad differentiation, best-cost, focussed low-cost and focussed differentiation.

Depending on your business and market there could be very good reasons for selecting anyone of these strategies. According to the research of Yoffie & Kwak (2001, Judo Strategy: Turning Your Competitior's Strength to Your Advantage, Harvard Business School Press, USA) however, small, new or developing companies should consider maintaining a deep focus on core business. If you choose to follow the path of differentiation, this could become increasingly difficult. Logically, the less core competencies (performing something consistently well at a good price) you need to develop to compete in your market(s), the more resources you have to focus on bringing your competencies to a level beyond that of your competitors. In saying this, keep your planning flexible and your market knowledge current as there are obvious risks in putting all of your eggs into one basket.

We see this flexible focus on the mat, good players have a shortlist of skills that they drill to perfection, develop entries for, combination techniques with and defensive techniques from. In the case of throwing they may have between 2 and 4 of these 'tokui waza', or favourite techniques and a further half a dozen small or supporting techniques. Whilst there are always exceptions to the rule, those that do not focus their training often don't develop the critical 'polish' on any one technique to be consistently successful as they fight.

To help you focus you efforts, start by asking yourself the following: what is my business? Who are my customers? How do I best give them what they need and want? And how can I do all this as efficiently as possible?
Until next week

Simon at your service

Delivering the knockout blow!

Welcome back to the fray,

A number of authors including Yoffie & Kwak (2001), have used the metaphor of judo to describe business strategy. As a judo player this appeals to me and as a service business owner I think it the metaphor is generally a good one.

In order to win a judo match you can use a range of techniques to 'deliver' a win that signifies a knockout blow. This could be a throw, pin, joint lock or strangulation technique. The key word today is 'deliver'. As a provider primarily of services as opposed to products, consider how you 'deliver' a service that meets the needs of your consumers.

How do you determine your opening hours to ensure that your customers have access to your service? Where is your service factory located and can your clients easily get to it (whether it is a physical, virtual or combined operation, this needs to be considered)? If you have a shop, is there enough parking or nearby public transport that is easy to access and safe? How does your delivery system make your customer feel (i.e. what effect do symbols, stories, attitudes, the service environment etc have on your client and how can this be used to increase the reputation and quality of your service in your customers eyes?)? Can people read and understand your marketing material and service information? How do can your customers access you  to provide feedback on your service offering, especially when they actually become a part of the service?

We each deliver our own service in our own way but we must also take the time to consider how these services are actually delivered to our consumers, whether this meets their needs and desires and if there is anything we can do to improve the access to our service in a way that is realistic from a resourcing point of view.

Speak to you soon!

Jita Kyoei - The principle of mutual benefit

The term Jita Kyoei is one of the underpinning philosophies of judo that can go a long way to ensuring success in business.
Looking for mutual benefit in activities is the essence of what a service attempts to achieve. The business owner needs to make sure the busines will bring in enough revenue to provide for their living needs whilst at the same time providing the consumer with what they need or desire. It stands to reason that the happier the consumer is, the greater potential there is to earn a living.
Looking after other stakeholders and the community will not only benefit them but will in turn further improve the reputation of the business.
In short, ask your consumer what they want, provide a service that meets their wants and desires and consider the long-term benefits of maintaining the mindset of mutual benefit.

Speak to you next week!
Simon at your service

Why are services different from products

Hi Everyone,

If you are in business to be successful then it pays to understand the type business you are in!

Whilst it's sometimes difficult to differentiate a service from other product driven businesses, doing so can help illuminate some of the problems some types of business face as opposed to others.

Rarely are businesses now purely service or purely product propositions but understanding where your business lies on this continuum can be useful. If your businesses core offerings are predominantly services then according to many authors, the following factors may impact on the way you market your business and the risks your customers may perceive:
Intangability - there may be no physical object(s) that change hands thus customers can not readily assess your offerings against what they need or desire; heterogeneity - the people delivering the service are seen by the customer as one and the same as the service; inseperability - the customer is involved in the delivery of the service at varying levels and that needs to be managed by the service provider; and perishability - services can not be stored (generally), this means that they may be subject to capacity contraints without the benefit of being able to store your offerings for a rainy day.

I hope this has given you something to think about for the time being and will help you move towards success and beyond.

Kind regards
Simon at your service