Has Your Business Stalled? Better Rethink Your Strategy

By John Riley

Rethink Your Strategy

Rethink Your Strategy

It’s axiomatic that a business plan or business model should be a dynamic document, i.e. revisited periodically and revised as necessary to reflect new realities. When its neglected, bad things happen such as the business may stall and the market share tumble.

 When a company stalls, there is usually more than one reason and its essential all the reasons be quickly identified.  If the problems linger too long, the company will find it increasingly difficult to restore its position in the marketplace. The concept of continuous improvement needs to be instituted and ingrained in employees as a normal part of the business process.

 First,  analyze the competitive situation to see if any of the players have changed their strategies or if any new companies have entered the arena.  Most often, new players will cut prices to establish themselves and gain a toe hold in the market.

 \Next, core customer relationships need to be examined to make sure customers have not found fault with your products, services or pricing. Because they are core accounts, you want to make regular contact at the management level so you can quickly determine any change in attitude.

 You also want to be sure existing products and services are continually being upgraded and new products are being introduced. You never want to be without a new product/service development program. New products are emerging continuously to replace products whose normal life cycle has not expired and you want to be ready to replace your own current product/service with a new and improved product/service rather than letting a competitor do it.  That will make life more difficult for the newcomers and enable you to preempt the established competition.

Finally, there needs to be a recognition of the critical skill jobs in the company. You want to be sure you have your best people with the right skills in those jobs. You also need to recognize the competition may buy a few of your good people so a succession plan should be in place to insure competent replacements are ready to step into those jobs. Finally, there may be a need for training of the other incumbent employees and provisions should be made for them.

 Any or all of these issues can affect how well your business is performing and when a stall occurs, that’s a danger signal that cannot be ignored. Swift remedial action can often restore your lost position, but any delay may create irreparable damage. It’s an easy choice to make.

Explore posts in the same categories: Management, Operations

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