25/02/2009 by Stephen Coe.

It is so very easy to get sucked into the general malaise that is sweeping around the world. The media sensationalize and exaggerate every piece of bad news and pretty soon it seems that there is no way out.

My advice is this.

Stop and ask yourself are the reasons why you started the business still current and relevant?

If so then the vision remains alive, it is only the method of achieving it that may need to be changed. That is nothing new, even in successful times companies constantly test, tweak and modify their strategies to meet changing customer needs.

The difference in a downturn is that we may need to make more significant changes, however if the vision remains true, then the end goal is still achievable.

As I have been saying for the last few months, the economic downturn presents opportunities for the bold to redefine not only their businesses, but also their markets and to instigate a ‘new world order’.

We at Balmoral Strategy Development Limited urge everyone to take the opportunity before them, to develop bold innovative value propositions and to put the wheels in motion, which will deliver significant growth over the coming years.

The time for action is now, being positive is the first step to making the vision a reality.

As usual all comments welcome - Stephen Coe, Director Balmoral Strategy Development Limited

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11/02/2009 by Stephen Coe.

As we reflect on the worsening economic situation and the calling to account of banking executives, it is all too easy to become blinkered. That is to say blame the banks for everything that is wrong today. Please do not get me wrong I am no bank apologist, but it does make me cringe when I hear everyone with a failing business blaming the credit crunch for their woes.

The fact is, that despite what some politicians say to the contrary, all economies have a natural cycle. So businesses need to be prepared to accept the hard times along with the good. The problem is we they became lulled and detached from this most basic economic fact, by a unusually long period of sustained growth. They believed because they wanted to believe the hype related to the end of boom and bust. The consequence of all of this is that many businesses grew complacent, failed to innovate and adequately manage their cash-flow. To put it simply they forgot the advice from grandma and failed to put aside cash for a rainy day.

No we hear complaints because banks will not extend their overdrafts. The simple fact is that businesses going bust in an economic downturn is another basic economic fact.

Consider this

Many businesses that start up during the growth phase, often do so without any real differentiation in their value proposition. They survive and may even thrive, because of the growth in demand. A case in point are the many new eateries that have sprung up over the last 5 years. With more disposable income, these restaurants filled a need as people ate out more often, some maybe 3 or 4 times a week. These same businesses only survived because of this usually high demand. History shows that it was only a matter of time before more normal behaviour returned and now we find that these same restaurants are now empty most nights of the week and are making significant losses. Plainly no amount of credit from a bank will rescue them. Their real problem is not cash-flow, but an unsustainable business model.

Another example are businesses that failed to innovate during the growth phase, content to rely on dated products and services. They would argue that business was holding up well and so they did not feel the need to develop new value propositions.

At Balmoral strategy Development Limited we believe that without differentiation there is now long term future for any business. Yes in a growth phase it is possible to gain market share due to shortfalls in capacity of incumbents, but in the long term it is a differentiated value proposition tht wins the day.

It is for this reason that we place Innovation and Differentiation at the centre of all of our strategy processes.

As usual all comments welcome - Stephen Coe, Director Balmoral Strategy Development Limited

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05/02/2009 by Stephen Coe.

 I have spoken on several occasions of the opportunities that arise during a downturn. We at Balmoral Strategy Development firmly believe that decisive bold strategies  in a downturn cycle have the capability to redefine a market and generate long term competitive advantage for those with the will and determination to answer the call to action.

 Consider the following as a bold alternative to retrenchment

 Five point action plan

1. Assess risk and exposure and put the necessary mitigation in place.
2. Assess competitiors exposure and vulnerabilities.
3. Brainstorm for opportunities to take advantage of competitor weakness, look forward not back, focus firmly on emerging customer needs and indistry trends. 
4. Re-assess competencies, determine what needs to be strengthened or acquired to gain competitive advantage.
5. Develop action plan and implement.

Each of the above has many elements , particular attention needs to be paid to risk and competitor reaction

As usual all comments welcome - Stephen Coe, Director Balmoral Strategy Development Limited

Posted in Competitive Advantage, Trends, Customer Insight, Business Strategy, Competencies | Print | No Comments »