Business strategy

I ran across a really interesting story the other day. It’s a story of a new company in the aluminium business; one with a clear view on how to improve customer service and reduce prices based on greater productivity.

Faced with responding to depressed demand and strong competition, Coventry based Jack Aluminium, a systems supplier, has strengthened its market positioning with a greater offer of value for its customers and is set to raise sales throughput even further!

Essentially Jack has created a business model to match demands of small scale high street and commercial users for specific and affordable window systems delivered within hours! It is the operational element that gives the edge.

Operating with aggressive sales and marketing and great products is vital and has brought success but it is the move to localised cutting and painting to specification, buffer stocks and fast delivery that will give Jack a clear and sustainable edge over rivals.

Here, indeed, is a business whose strategic positioning truly supports the claim; “Fast and Affordable Aluminium Window and Shop Front Systems”

Here is the nutshell:

Jack Aluminium Strategic Positioning

WHO:  The Customer Nationwide small scale high street and commercial users.

WHAT:  The Offer Superior vlaue shop front and office products at affordable (competitive prices), delivered in hours.

HOW:  The game plan Local cutting and painting to spec locally to meet local demands for finished product quickly. A number of small efficient paint shops in dense areas of demand around the country able to stock and deliver within hours. Sections cut to spec to meet specific requests, off cuts held in stock which are topped up. Targeted marketing and sales. Avoid large systems suppliers and build sales in smaller end.

For the full Monty go to Jack Aluminium site

Best wishes Andrew,

We examined the first of two really important tenets of successful strategy – creative insight and competence? Well it’s time to look at the second of these: what is it that you and your business are good at doing?

People tend to think that profit is purely to do with market opportunity. But this is to miss the truth. Great strategies are built on a clear appreciation of “what we’re good at doing” and converting this into competitive advantage. This core strength or competence is the driver for market penetration and development.

The importance of the question: ‘what are we good at doing?’ can not be overestimated. For what you – and your business – can do that’s of real value for your customers will help you differentiate your business. It then follows that if you concentrate on activities that leverage your strengths so that you can get the best output you are capable of, you can continually improve the strength until it becomes a world beater.

Producing ‘hearts and minds’ loyalty
You can also build on your business’ strength by turning it into a compelling vision that can often be more seductive than the product or service you offer. Most people in life haven’t really worked out their real purpose in life. This means that they’ll attach themselves to someone that has if given half the chance.

This is much bigger than finding a niche because if you want to win over the ‘hearts and minds’ of your prospects you’ve got to go beyond the product to a cause – your business strength lends itself to being that cause. And this applies to the people that work for you too. After all they are your ‘internal customers’.

The issue then is to be absolutely clear about the one thing that you are really good at doing or put another way; what distinctive competence makes your business special. It might be something to do with safety, or durability, or size.

Points To Remember
• So remember don’t underestimate the value of having a strategy.
• Creative insight and key strengths should be the true focus of business success and achievement.
• Concentrating on what you’re good at can win the ‘hearts and minds’ of your most important stakeholders.