Services:
1.
Business Consulting:
Market Analysis, Product
Strategy, Strategic Partnerships,
Competitive Strategy
2.
Financing Strategy
3.
Private Equity Fundraising
Strategy is the selected path to a destination. We can't
draw you a map unless you know where you want to go.
Market
Analysis
Market
analysis is only a tool to help sharpen the view of a possible
destination. It does not substitute for your decision on
where you want to go as a business. Market information can
include:
- market
opportunity/sizing: how much potential money can be made
-
market share: the top players in a market and how much
they each own of the market share, break downs by geographic
area or vertical industries may make sense
- market
dynamics: history of market, trends in growth or decline
of the overall market, trends in market share changes,
influential factors like mergers, acquisitions, standards
bodies etc...
Note
that none of this specifies what the market focus is. This
is why a majority standard market researches do not provide
high value. Getting the total market size on vacation property
is very different than market analysis on vacation property
management software market targeted at property management
companies that manage 100+ properties on average.
Product
Strategy
Successful
products are the ones you build to meet the needs of your
target customers. Never assume you know what the customers
want without talking to them face to face and watching them
do what they need to with the product. Never take customer
feature requests at face value, find out why. Remember that
they are not the professional product managers and you cannot
make everyone of them happy.
Our
view is that full customer understanding is crucial to a
successful strategy, as well as alignment with market needs
and the company's overall goals. Market needs comes from
the market analysis above, and you provide the company's
goals. What we see you need to start understanding your
customers:
Once
you have clarity on your customers, your target market and
the company's short term and long term goals, you can start
formulating your product strategy:
- decide
on high level priority: ie. increase adoption/marketshare
vs increase value of existing customer vs getting into
new market
-
detailed gap analysis based on high level priority
- enumerate
options/ideas targeted at gaps identified
- eliminate
options/ideas not specifically targeted at a gap area
- evaluate
cost/benefit of options or options groups
- pick
a direction and GO!
Strategic
Partnerships and Alliances
619,000
partners enable $13.4 billion dollars in revenue for Microsoft.
Starbucks partnered with Pepsi-cola to distribute their
Frappacino drinks on Pepsi's premium shelf space in the
grocery stores. When Fedex bought Kinkos, all other print
companies automatically partnered with UPS.
Partnerships
can significantly increase your revenue, market share and
be a strategic move in the market place. The crucial pieces
to a good partnership are selecting a mutually beneficial
partnership, get the partnership signed, managing the partnership
and existing the partnership.
Selection
of good potential partners seem very simple on the surface.
All you need is to select a partnership where both of you
make more money with the partnership than without. The best
selection results from deep understanding of the potential
partner: Their other products and services; their over all
goals in the short and long term; their competitors and
other partners. You're basically looking for anything else
about the potential partner that may conflict with your
proposed partnership.
Doing
your homework well in the partner selection will make getting
the deal signed that much easier. You need to approach the
partner with specifically what will benefit them and how
that makes them meet their top goals for next quarter, year,
10 years, etc... One thing about knowing who the competitors
are, if this company refuses, approach a competitor.
Maintaining
the partnership involves the basics of relationship management
and regular checkin on the value proposition of the partnership.
For relationship management, remember that once trust is
broken it's very hard to reestablish. Both sides need to
focus on preserving trust as a top priority. Out side of
that, you need regular checkins on whether the value proposition
that originated the partnership is still valid. If there
has been changes, is it still a beneficial partnership based
on the new value proposition.
An
exiting strategy for a partnership is crucial to set in
place when the partnership is formed. This can be only internal
knowledge to the company and can change over time. Putting
thoughts on exit strategy when you start will give much
clearer signs to watch for when you do the regular value
proposition checks.
Competitive
Strategy
You
cannot compete successfully unless you understand how your
competitor competes. A recent customer wanted to know how
to compete with Microsoft. Here are some of what we know
about how Microsoft competes:
- Microsoft
is not invincible. Their competitive successes are well
publicized but they have an equal amount of failures that
no one hears about because the details never make it outside
of the company. Just remember, they are a business run
by people just like any other business.
- Their
competitive strength is coming from behind. They are not
the innovators in a space. If you are the lead in a growing
or large market that they don't already have a presence
in, they will be a competitor at some point.
- They
have a general strategy when entering a new market to
copy the best of the leaders in the space, and then undercut
on price and overpower on reach.
- For
a new product, they generally take 3 release to get it
right. The first release is focused on time to market
and checklist feature comparison. The next release is
almost like a service pack and many times is. It will
fix major bugs and address top customer issues. The third
release will be a quality driven release with a more mature
set of features.
- Their
product take an average of 3 release to get it "right",
but their marketing will be bang on from the start. Utlize
their marketing to give validity to your market and do
the reach and education that you're unable to.
- Microsoft
business units operate as independent companies. They
will partner and compete with each other just like any
other companies. Use that to your advantage. There is
no such thing as MS the evil empire that's all coordinated
amongst their business units to crush little companies
they're competing with.
- Don't
copy what MSFT does to win, you can't compete with them
on their strengths. Understand their weaknesses, and compete
against that with your strengths.