Business Strategy

A key success factor (KSF) for a trade, profession or industry is something that a business must do to be successful. It is a necessary condition for success. The Difference Between Key Success Factors, Key Factors Of Difference & Critical Success Factors There are a number of similar sounding phrases that mean different things. To […]

{ Comments on this entry are closed }

Continue Reading

Critical Success Factors & Key Performance Indicators

by Paul Simister on April 2, 2013

Critical Success Factors (CSF) are unique to implementing your particular strategy. Key success factors will be common across many of the businesses within an industry and (hopefully) each business has identified a small number of key factors of difference to differentiate itself away from the  competition. The combination of key success factors and key factors […]

{ Comments on this entry are closed }

Continue Reading

Why Are Some Companies More Profitable Than Others?

by Paul Simister on March 21, 2013

There are two fundamental questions that business owners and managers ask all over the world: Why are some companies and businesses more profitable than others? It’s a great starting point for the second, and even more important question. How can we this business or company more profitable? Profit Or Sales We know some people focus […]

{ Comments on this entry are closed }

Continue Reading

How To Create A Vision For A Small Business

by Paul Simister on March 20, 2013

Should every business have a clear vision, no matter what the size? In my opinion, yes. There’s a danger of thinking that mission statements and vision statements belong to the work of senior managers in big businesses and only big businesses. While it’s true that big businesses have a much harder job of communicating a […]

{ Comments on this entry are closed }

Continue Reading

Are The Five Forces Wrong?

by Paul Simister on March 18, 2013

One of the very best known strategy models is the Five Forces Of Industry Profitability that has been developed and promoted by Professor Michael Porter. Background To The Five Forces Analysis Model The Five Forces Analysis model was first introduced in the Harvard Business Review in 1979 in an article by Michael Porter called “How […]

{ Comments on this entry are closed }

Continue Reading

Marketing or Strategy or Marketing Strategy?

by Paul Simister on March 15, 2013

Do marketing and business strategy fit together neatly like two complicated jigsaw puzzle pieces in the picture of “successful business management”? Or do marketing and strategy overlap in a topic called “marketing strategy”? It’s an interesting question and one that I picked up from the Harvard Business Review on an article called The Best Companies […]

{ Comments on this entry are closed }

Continue Reading

The Six Steps Profit Formula Report

by Paul Simister on March 5, 2013

Get my free report… The Six Steps Profit Formula: The Simple Rules Every Small Business Owner Needs To Know I will probably ask people to sign up for this in future but at the moment you can get it without any kind of obligation by clicking on the download link below: The Six Steps Profit […]

{ Comments on this entry are closed }

Continue Reading

Do You Have A Vision For Your Business?

by Paul Simister on December 3, 2012

A common problem with running a small business is that you lose sight of a powerful vision as managing the day-to-day issues becomes the priority. If you started your business rather than inheriting it, I bet you had a very good idea about what you wanted to achieve for yourself and your customers. Questions About […]

{ Comments on this entry are closed }

Continue Reading

Country Risks For Global Strategy

by Paul Simister on November 14, 2012

Are you thinking about expanding abroad and wondering how you can get data for an effective global strategy? A reader, Perry Mayer of the Pub & Bar Network pointed out an interesting resource to me – The Legatum Prosperity Index. This ranks the countries of the world across various indices like economy, governance, education and […]

{ Comments on this entry are closed }

Continue Reading

Inside Reality & Outside Perception

by Paul Simister on October 18, 2012

I want to delve into a concept called Inside Reality and Outside Perception. I was listening to a recording by Rich Harshaw of Monopolize Your Marketing and he used the expression (or it may have been Internal Reality and External Perception) and I thought that’s a neat way to express an idea I’ve been trying […]

{ Comments on this entry are closed }

Continue Reading

What Can Save The Greek Tourist Industry?

by Paul Simister on March 28, 2012

Imagine that five years ago you owned a hotel in Greece. Times were good. Occupancy rates were high. You were making a lot of money. You wanted to make more. So what strategic options did you have? Strategic Options For A Greek Hotel Business The obvious strategic options are:

{ Comments on this entry are closed }

Continue Reading

Financial Strength In The SPACE Matrix

by Paul Simister on November 24, 2011

The SPACE or Strategic Positioning matrix assesses a business along four dimensions to find an appropriate strategic thrust and in this article, we’ll look at the SPACE factors for financial strength. Financial Strength In The SPACE Matrix According to the creators of the Strategic Position and Action Evaluation Matrix, (Strategic Management – A Methodical Approach”, […]

{ Comments on this entry are closed }

Continue Reading

Exit Barriers Intensify Competitive Rivalry

by Paul Simister on November 18, 2011

Exit barriers intensify competitive rivalry by stopping businesses that are losing money from leaving the industry when there is little or no hope of future profitability. The Five Forces model  from Michael Porter is an important way to understand the competitive pressures within an industry and at the centre is competitive rivalry.

{ Comments on this entry are closed }

Continue Reading

Competitive Advantage In The SPACE Matrix

by Paul Simister on November 17, 2011

The SPACE matrix assesses a business along four dimensions to find an appropriate strategic thrust and in this article, we’ll look at the SPACE factors for competitive advantage. Competitive Advantage In The SPACE Matrix According to the creators of the Strategic Position and Action Evaluation Matrix, (Strategic Management – A Methodical Approach”, Rowe, Mason, Dickel, […]

{ Comments on this entry are closed }

Continue Reading

The SPACE matrix assesses a business along four dimensions to find an appropriate strategic thrust and in this article, we’ll look at the SPACE factors for industry attractiveness. Industry Attractiveness In The SPACE Matrix According to the creators of the Strategic Position and Action Evaluation Matrix, (Strategic Management – A Methodical Approach”, Rowe, Mason, Dickel, […]

{ Comments on this entry are closed }

Continue Reading

Strategy Definition – What is Strategy?

by Paul Simister on November 3, 2011

What is the definition of strategy and how do various strategy definition compare? There is a lot of talk about strategy and the need to be more strategic in your thinking if you want business to succeed but I don’t think there is any agreed definition of strategy. In fact, looking through various strategy books, […]

{ Comments on this entry are closed }

Continue Reading

Environmental Stability In The SPACE Matrix

by Paul Simister on November 2, 2011

The SPACE matrix assesses a business along four dimensions to find an appropriate strategic thrust and in this article, we’ll look at the SPACE factors for environmental stability. Environmental Stability In SPACE According to the creators of the Strategic Position and Action Evaluation Matrix, (Strategic Management – A Methodical Approach”, Rowe, Mason, Dickel, Mann and […]

{ Comments on this entry are closed }

Continue Reading

Conservative Strategy In The SPACE Matrix

by Paul Simister on October 22, 2011

The SPACE Matrix or more formally, the Strategic Position and Action Evaluation Matrix recommends one of four basic strategic approaches for a business and today I’m going to focus on the Conservative Strategy dimension. This is when the business is in a good position in  its financial strength and environmental stability but its market offers […]

{ Comments on this entry are closed }

Continue Reading

The New 7 S Model

by Paul Simister on October 16, 2011

Richard D’Aveni argues that in Hypercompetition, the opposition can use the old 7-s framework against the firm because it makes the business predictable so he came up with the new 7 S model. The New 7 S

{ Comments on this entry are closed }

Continue Reading

Aggressive Or Offensive Strategy In Business & Marketing

by Paul Simister on October 13, 2011

Effective strategy is a mixture of defensive strategy and aggressive strategy / offensive strategy to help a business to protect what it’s got and then to make gains in a competitive market. Use The SPACE Matrix To Check If An Aggressive Strategy is Appropriate The Strategic Position and Action Evaluation Matrix (SPACE Matrix) is a […]

{ Comments on this entry are closed }

Continue Reading

I’m ending my look at Michael Porter’s Five Forces Analysis with a look at competitive rivalry, perhaps the most powerful and destructive of the five forces as competitors carelessly compete away any profits and even create price wars that cause long term damage to industry profitability. Competitive Rivalry Or Rivalry Amongst Existing Firms Michael Porter […]

{ Comments on this entry are closed }

Continue Reading

Small Business Strategic Planning

by Paul Simister on October 12, 2011

Small business strategic planning is a cut down version of the strategic planning techniques used by big businesses to help improve competitiveness. It’s that last word that is the key. Strategic planning is about helping you to improve the way you win profitable business from customers instead it going to your competitors. It’s Even More […]

{ Comments on this entry are closed }

Continue Reading

When you are thinking about business strategy it is important to focus on the business competition and the different levels of competitions. The 5 C”s Model of Competition is a very useful framework for assessing the level of competitive intensity in your market and thinking about the opportunities and threats that competition presents. It is […]

{ Comments on this entry are closed }

Continue Reading

Bargaining Power Of Suppliers : Uses & Abuses

by Paul Simister on October 11, 2011

The bargaining power of suppliers and vendors is one of the Five Forces that Michael Porter identified that determine industry structure and attractiveness. In many ways the bargaining power of suppliers is the same as the bargaining power of customers but seen from the other party’s perspective. Powerful suppliers in the industry value chain can […]

{ Comments on this entry are closed }

Continue Reading

Threat of Substitutes In Porter’s Five Forces Model

by Paul Simister on October 9, 2011

The threat of substitutes is an important element in the Five Forces Analysis model introduced by Michael Porter in his book Competitive Strategy. The issue of the threat of substitutes is always a factor which limits the profit potential of a market. In times of economic difficulties, the threat accelerates sharply but it also represents […]

{ Comments on this entry are closed }

Continue Reading

Bargaining Power Of Buyers Or Customers

by Paul Simister on October 8, 2011

The bargaining power of buyers or customers is one of the five forces that determine industry profitability in Michael Porter‘s Five Forces Analysis model explained in his book Competitive Strategy. The basic idea is that by using their  bargaining power as a powerful buyer, some customers can capture a high proportion of the value you […]

{ Comments on this entry are closed }

Continue Reading

Competitive Strategy In The SPACE Matrix

by Paul Simister on October 7, 2011

The SPACE Matrix or more formally, the Strategic Position and Action Evaluation Matrix recommends one of four basic strategic approaches for a business and today I’m going to focus on the Competitive Strategy dimension. This is when the business is in a good position in its marketplace but its financial strength is insufficient to compensate […]

{ Comments on this entry are closed }

Continue Reading

Why Is Strategy Important ?

by Paul Simister on October 5, 2011

Have you ever asked yourself “Why Is Strategy Important ?” What Is Strategy And Why Is Strategy Important? I recently wrote about “What Is Strategy?” The business strategy of a company provides the big picture that shows how all the individual activities are coordinated to achieve a desired end result. It is through the strategy […]

{ Comments on this entry are closed }

Continue Reading

Barriers To Entry & The Threat Of New Entrants

by Paul Simister on October 5, 2011

Today we will look at how you can use barriers to entry to reduce the threat of new entrants into your market. The threat of new entrants is one of the forces in Michael Porter’s Five Forces model of industry analysis. This threat applies to any business of any size, big or small. It can […]

{ Comments on this entry are closed }

Continue Reading

Five Forces Analysis – Michael Porter

by Paul Simister on October 3, 2011

In my guide to strategic planning models I described Michael Porter’s Five Forces Analysis as probably the most famous of the strategy models but until now, I haven’t written about it in detail on my blog. Background To The Five Forces Analysis Model The Five Forces Analysis model was first introduced in the Harvard Business […]

{ Comments on this entry are closed }

Continue Reading