Strategic

ositioning / Plannin

Objectives

Define strategy
Discuss the nature of
strategic positioning
Introduce the merits of

strategic planning

Explore how entrepreneurs

can carry out effective strategic planni

nciple #1 of Strategic Positionin

trategy is the creation of a uniqu

nd valuable position, involving a
different set of activities.

Serving few needs of many custome

Serving broad needs of few custome

nciple #2 of Strategic Positioni

trategy requires you to make trade- offs

competing to choose what not to do.

You cannot be all things to all people.

Focus on developing a solution and a
brand that is meaningful and consistent to
customers.
Emphasize serving one market well and
explore growth opportunities later.

nciple #3 of Strategic Positioni

rategy involves creating a fit among a

ompanys activities.
Company activities must reinforce one another
Wal-Marts low cost is supported through minimal
personalized customer service and limited
ambiance in its stores
Nordstroms higher cost match personalized service

Fit drives competitive advantage and sustainability

Competitors struggle to imitate well - developed
activities

ategic positioning should uncover n

portunities

Strategic positions are often not obvious,

and finding them requires creativity and
nsight.
Entrepreneurs often discover unique
positions that have been available but
imply overlooked by established
ompetitors.

Strategy is the creation of a

unique and valuable position
Strategy requires you to make
trade-offs in competing to choos
what not to do
Strategy involves creating a fit
among a companys activities

Strategic planning is:

The formulation of long-range plans for the effective
management of environmental opportunities and threats
in light of a ventures strengths and weaknesses.
-

Defining the ventures mission

Specifying achievable objectives
Developing strategies
Setting timelines and measures

Benefits of strategic planning

Cost savings
Fewer cash-flow problems
Faster decision making
More efficient resource allocation
Improved competitive position
More timely information
More accurate forecasts
Reduced feelings of uncertainty

Basic Steps in Strategic Planning

1. Examine the internal and external environments of
the venture (strengths, weaknesses, opportunities,
threats)
2. Formulate the ventures long-range and short-range
strategies (mission, objectives, strategies, policies)
3. Implement the strategic plan (programs, budgets,
procedures)
4. Evaluate the performance of the strategy
5. Take follow -up action through continuous feedback

Fatal mistakes that entrepreneurs fall prey to

in their attempt to implement a strategy
Flaw 1: Misunderstanding industry attractiveness
Flaw 2: No real competitive advantage
Flaw 3: Pursuing an unattainable competitive position
Flaw 4: Compromising strategy for growth
Flaw 5: Failure to explicitly communicate the
ventures strategy to employees

Implementing a Strategic Plan

The use of incremental goal attainment that
takes a new venture from start
-up through
strategy reformulation.
Advantages of milestone planningare:
the use of logical and practical milestones
the avoidance of costly mistakes caused by failure to
consider key parts of the plan
a methodology for re-planning, based on continuous
feedback from the environment.

Reasons for the Lack of Strategic Planning

Time scarcity
Lack of knowledge
Lack of expertise/skills
Lack of trust and openness
Perception of high cost

Summary
Strategic planning requires near-term
commitment for long-term benefits
Value exists in the plan, but more so
in the process of planning
Regular evaluate and update the
strategic plan