Where To Play
I sometimes find companies describing their strategic choices, especially in regards to product type and consumer segments, with an array (or a range) of markers.
More often than not this is a symptom of an underlying issue: either the company does not want to decide on either option or they have not figured out the central theme within these options, yet.
Best strategic decisions are made where the playing field is divided by customer problems and needs.
Domains of where to play
- Customers: What best describes our targeted customers? (e.g. demographics, lifestyle, attitude towards life, needs, values, Jobs-to-be-Done)?
- Customers: What kind of pricing do we go for?
- Customers: Which problems do we solve for our customers?
- Geography: Where do we want to play? Which countries or regions do we avoid?
- Distribution: How will consumers find out about our offerings?
- Distribution: Through which channels do we serve our offerings? (e.g. stores, e-commerce, retailers)
- Vertical stage of production: Where along the value chain will we engange? How broadly or narrowly do we offer products and services?
Examples
- Be lean
- Get plant/equipment capital spend to xx of sales
- Reduce inventory by ×%
- Be the choice of consumers
- Superior base products, prices right
- Preferred product formats and designs
- Manage category growth
- Be the choice of retailers
- Improve shelf availability and service
- Develop differentiated shopping solutions
- Win with the winners
Based on Roger L. Martin and Future Organization Playbook.
How to Disrupt and Dominate a Red Ocean Market – Matthew E. May