Commercial Strategy Projects
Commercial Strategy really is all about winning!
Strategy is a further level of analysis and proactive decision-making – but at very deep level, concentrating on long-term fundamentals.
Making a correct strategic decision generally leads to higher long-term profitability, better cash flow and value creation.
We produce commercial strategy help, ideas and solutions using logical order and method rather than pretending to be some sort of guru!
We work for most businesses in most sectors but particularly SMEs who want to get to the next level as well as high octane start-ups.
Our commercial Strategy engagements work through 'four focuses':
Strategy - Focus One
'Focus One' is concerned with how a company's ideas and business plans will be influenced by the fierce competitive pressures of the external commercial environment.
Often this strategic analysis will reveal that the company might need to alter its company structure or product range and 'position' itself in a slightly less hostile area of its industry or market.
The main aim is to avoid attempting to compete with larger competitors who can make the same offering at a cheaper cost. So, a strategic focus could be profitable smaller industry or market segments which the larger players have little interest in serving.
This prevents a profit squeeze and allows a company to align its direction to better suited industry and market segments.
‘Focus One’ also analyses a business against threats from the outside world; political upheavals, economic booms and busts, technological breakthroughs, the climate crisis, demographic trends, and so forth.
The strategist’s job is to not only warn and shape strategy based on likely external threats but moreover to find opportunities from shifting world forces.
Strategy - Focus Two
‘Focus Two’ turbo-charges a company’s strategy further by identifying and embracing a bundle of small sustainable competitive advantages to reinforce the company as the 'first-choice supplier' within its industry segment and target market.
Sustainable competitive advantages do not need to be big or able to last forever. Many successful businesses use a bunch of small competitive advantages which could last just a few years.
Once found, the bundle of competitive advantages will need to be camouflaged, so that competitors cannot figure them out and try to replicate the company’s competitive edge.
Competitive advantages can be found in almost every part of a business and are often the result of special competencies held by a company. It is the strategist’s job to find them and give a company its unique competitive advantage.
Strategy - Focus Three
‘Focus Three’ involves commercial strategists answering tricky but fundamental business problems - usually those problems relating to the long-term sustainability of the company, such as:
> Would a company add value and improve its returns by buying-in a particular highly used component or service rather than producing it itself?
> Would a company increase its long-term profitability by retailing its own product rather than wholesaling it?
> Would a company really create value-adding synergies and linkages if it merged with a rival? Would the expected joint market share actually make a difference?
We can help with all these commercial strategy-based questions as well as those regarding strategic alliances (including M&A) and international business strategy.
Strategy - Focus Four
‘Focus Four’ involves companies at war with its rivals.
Usually 'head-on' competition is to be avoided but sometimes it is necessary and we can create a strategy for a company to adopt – both offensive and defensive.
Competitor intelligence, timing and hard strategic thought are the essential elements to win the battle. We can help!
