Business strategies in difficult times
Business strategies in difficult times
This is especially true in business today. The business milieu around the globe has become significantly more complex than it was a hundred years ago. To survive, grow and succeed, there are many more internal and external pitfalls (risks) a business owner has to deal with today.
Let me give you only two examples of EXTERNAL threats a small or medium business owner has to deal with (and I am not even talking about internal threats in your business!):
a) Global Competition
We are living in a global village today.
For example, it is known that E-Bay has closed some mom-and-pop pawnshops by providing the facility to trade second-hand goods via the Internet (something nobody thought would ever be possible)!
And then there is China. Small and medium businesses in Italy (and in the rest of Europe and the USA) are in a price battle right now with manufacturers in China. For example, small and medium chair makers in Italy cannot compete with chair makers in China. Many are closing their doors. The exception is... the business owners who have done their strategic planning AHEAD OF TIME and did not ignore the new risk (i.e. China) on the horizon a few years ago. These business owners started to concentrate on branding, niche markets and outsourcing of certain manufacturing processes to less expensive alternatives in Eastern Europe and even China.
And do not forget about India! India, again, is perhaps the new business threat to China today. India will change the face of the business world for a long time! According to Time Magazine* India will be the next great economic superpower. *July 3, 2006, Vol. 168, No.1
b) Legislation
Around the globe more and more complicated laws are endorsed by governments, making it extremely difficult for a business owner to keep record of what he must, must not, should, and should not do to keep his business running while not paying fines or going to jail.
These are only two examples of external risks (threats) one has NO control over. Just like the weather and seasons. It has become absolutely necessary for us to pay attention to our EXTERNAL risks too. While it is true that we cannot always avoid external risks, we do need to perform some strategic planning to avoid OR deal with the pitfalls on the horizon when possible at all!
And perhaps one might say: "Michiel, I am a small or medium business entrepreneur, the global village and competition cannot and will not affect my business and I really do not need to perform strategic planning as small or medium business owner."
Such a comment would have been dead right twenty or even ten years ago. But not any more.
Why? Among other things, the Internet, e-commerce and technology in general have turned the world into a VERY small planet. The Internet has leveled the playfield for EVERY ONE (i.e. small, medium and corporate business) in every country. Though many entrepreneurs are still cynical about the Internet because of the .com bubble a few years ago, some are not! These entrepreneurs know that the Internet is BUSY CHANGING AND WILL CONTINUE TO CHANGE THE NATURE OF BUSINESS FOREVER, regardless of whether you are sitting in Lhasa, Tibet or in New York City, USA and whether you have a pawnshop, chemical factory, service-oriented or Internet business! The real Internet boom is here now! PERIOD.
So, what are the options and possible countermeasures when dealing with external risks? How can you make sure that your business will not be caught without a jacket in the winter season? Unfortunately, space does not allow me to discuss the answer in detail. Further, I think the world, and especially business people, are sick and tired of listening to theory. We need a change in our thinking patterns or, as some call it, we need streetwise knowledge. But I want to stress the following important points:
1) We need to be CREATIVE.
2) We need to THINK DIFFERENTLY and change what does NOT work!
3) And we should STOP using old solutions to solve new problems!
4) ABOVE ALL, we must be careful NOT TO BECOME COMPLACENT!!! (This is particularly true when it comes to our competition).
Further, you may want to take a look at the following possible strategic solutions (I will use our example of the competition between Europe and the USA versus China and India again):
a) Threat-Weakness Strategy
In my business survival manual (Survival Kit for Small and Medium Businesses - Profit from your Business Risks!) I spent a lot of time on threat-weakness scenarios. By addressing, for example, inefficiencies in production or service delivery systems, a business can optimize the input of resources and output of products or services delivered. The business will grow more efficient and productive and will be able to cut prices. Small and medium businesses in Europe, and especially in Italy, will have to grow more efficient to compete with China (a threat to European businesses when it comes to prize).
b) Threat-Strength Strategy
It is the opinion of most experts that small and medium businesses in Europe should try to create small up-market segments (niche markets) for their quality products (i.e. their strength). They should not compete on price only (though every one of them should still improve its efficiency). With this goes branding of products to create status in the eyes of up-market customers. An example is “Made-in-Italy” branding, symbolizing quality and uniqueness. While China and India are able to produce on a mass basis (this is their strength and a threat to European businesses), businesses in Europe can produce small quantities of high-quality-products for small up-markets.
c) Opportunity-Weakness Strategy
Some small and medium businesses in Europe and USA have already changed from inland suppliers to foreign country suppliers (like China and India), providing resources at lower prices (an opportunity). As a result, they have increased their competitive edge by minimizing their weak points (i.e. expensive inland suppliers).
d) Opportunity-Strength Strategy
And finally, if these small and medium businesses in Europe and the USA can utilize their strengths to find and profit from new opportunities, it will help them change direction.
Lastly, something about business opportunities. As I have mentioned, the REAL Internet boom is here... NOW. This, again, is a HUGE business opportunity you could profit from. If you are interested, you might want to check out our web site’s link page.
Business strategies in difficult times - To learn more about this author, visit Michiel Jonker's Website.
Like this article? Share it with your friends
The only thing in life that stays unchanged is change...
This is especially true in business today. The business milieu around the globe has become significantly more complex than it was a hundred years ago. To survive, grow and succeed, there are many more internal and external pitfalls (risks) a business owner has to deal with today.
Let me give you only two examples of EXTERNAL threats a small or medium business owner has to deal with (and I am not even talking about internal threats in your business!):
a) Global Competition
We are living in a global village today.
For example, it is known that E-Bay has closed some mom-and-pop pawnshops by providing the facility to trade second-hand goods via the Internet (something nobody thought would ever be possible)!
And then there is China. Small and medium businesses in Italy (and in the rest of Europe and the USA) are in a price battle right now with manufacturers in China. For example, small and medium chair makers in Italy cannot compete with chair makers in China. Many are closing their doors. The exception is... the business owners who have done their strategic planning AHEAD OF TIME and did not ignore the new risk (i.e. China) on the horizon a few years ago. These business owners started to concentrate on branding, niche markets and outsourcing of certain manufacturing processes to less expensive alternatives in Eastern Europe and even China.
And do not forget about India! India, again, is perhaps the new business threat to China today. India will change the face of the business world for a long time! According to Time Magazine* India will be the next great economic superpower. *July 3, 2006, Vol. 168, No.1
b) Legislation
Around the globe more and more complicated laws are endorsed by governments, making it extremely difficult for a business owner to keep record of what he must, must not, should, and should not do to keep his business running while not paying fines or going to jail.
These are only two examples of external risks (threats) one has NO control over. Just like the weather and seasons. It has become absolutely necessary for us to pay attention to our EXTERNAL risks too. While it is true that we cannot always avoid external risks, we do need to perform some strategic planning to avoid OR deal with the pitfalls on the horizon when possible at all!
And perhaps one might say: "Michiel, I am a small or medium business entrepreneur, the global village and competition cannot and will not affect my business and I really do not need to perform strategic planning as small or medium business owner."
Such a comment would have been dead right twenty or even ten years ago. But not any more.
Why? Among other things, the Internet, e-commerce and technology in general have turned the world into a VERY small planet. The Internet has leveled the playfield for EVERY ONE (i.e. small, medium and corporate business) in every country. Though many entrepreneurs are still cynical about the Internet because of the .com bubble a few years ago, some are not! These entrepreneurs know that the Internet is BUSY CHANGING AND WILL CONTINUE TO CHANGE THE NATURE OF BUSINESS FOREVER, regardless of whether you are sitting in Lhasa, Tibet or in New York City, USA and whether you have a pawnshop, chemical factory, service-oriented or Internet business! The real Internet boom is here now! PERIOD.
So, what are the options and possible countermeasures when dealing with external risks? How can you make sure that your business will not be caught without a jacket in the winter season? Unfortunately, space does not allow me to discuss the answer in detail. Further, I think the world, and especially business people, are sick and tired of listening to theory. We need a change in our thinking patterns or, as some call it, we need streetwise knowledge. But I want to stress the following important points:
1) We need to be CREATIVE.
2) We need to THINK DIFFERENTLY and change what does NOT work!
3) And we should STOP using old solutions to solve new problems!
4) ABOVE ALL, we must be careful NOT TO BECOME COMPLACENT!!! (This is particularly true when it comes to our competition).
Further, you may want to take a look at the following possible strategic solutions (I will use our example of the competition between Europe and the USA versus China and India again):
a) Threat-Weakness Strategy
In my business survival manual (Survival Kit for Small and Medium Businesses - Profit from your Business Risks!) I spent a lot of time on threat-weakness scenarios. By addressing, for example, inefficiencies in production or service delivery systems, a business can optimize the input of resources and output of products or services delivered. The business will grow more efficient and productive and will be able to cut prices. Small and medium businesses in Europe, and especially in Italy, will have to grow more efficient to compete with China (a threat to European businesses when it comes to prize).
b) Threat-Strength Strategy
It is the opinion of most experts that small and medium businesses in Europe should try to create small up-market segments (niche markets) for their quality products (i.e. their strength). They should not compete on price only (though every one of them should still improve its efficiency). With this goes branding of products to create status in the eyes of up-market customers. An example is “Made-in-Italy” branding, symbolizing quality and uniqueness. While China and India are able to produce on a mass basis (this is their strength and a threat to European businesses), businesses in Europe can produce small quantities of high-quality-products for small up-markets.
c) Opportunity-Weakness Strategy
Some small and medium businesses in Europe and USA have already changed from inland suppliers to foreign country suppliers (like China and India), providing resources at lower prices (an opportunity). As a result, they have increased their competitive edge by minimizing their weak points (i.e. expensive inland suppliers).
d) Opportunity-Strength Strategy
And finally, if these small and medium businesses in Europe and the USA can utilize their strengths to find and profit from new opportunities, it will help them change direction.
Lastly, something about business opportunities. As I have mentioned, the REAL Internet boom is here... NOW. This, again, is a HUGE business opportunity you could profit from. If you are interested, you might want to check out our web site’s link page.
Business strategies in difficult times - To learn more about this author, visit Michiel Jonker's Website.
Like this article? Share it with your friends
![]() | |
| |
No article feedback found. |
| |
Leave Your Feedback |
|
| |
| |||
Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
![]() | |
![]()
| |
![]() | |
|
| |
![]() | |
|
| |
![]() | |||||||
|
![]() | ||
|
| ||
![]() |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
![]() |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
![]() |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
![]() |
|
|
![]() | ||
|
More PR Resources
Press Release Builder | ||
|
Top 50 Blogs For Startups
Top Blogs To Watch In 2009 | ||
![]() | ||
![]() | ||||
| ||||
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
|
|
|
|













Subscribe to Michiel's articles











