Strategy

At the heart of a company strategy are the strategic success positions (SSP). SSPs, also called core competencies or competitive advantages, are preconditions consciously created through the expansion of key, dominant capabilities that allow the company to achieve above-average long-term results compared with competitors. SSPs mean differentiating and profiling. They are used to define how the plan will distinguish itself from direct competitors. The following questions should be asked – and must be answered:
  • Where are we better, faster and cheaper than the competition?
  • Why should the customer buy from us rather than someone else?
  • What superior customer benefits are likely to result?
  • What makes the project unique?

Along with your SSPs, fix your strategic priorities relating to your most important target customers and market partners, as well as the most important goods and services and the target market. Finally, define your revenue (volume x price) and growth steps for future success. SMEs and young companies take different approaches to ensure their market fitness and high economic efficiency. An insight into company practice indicates that essentially three different strategies can be identified:
  • reduce: when a company concentrates on its core competencies and outsources tasks that others can do more efficiently (and ultimately more cheaply).
  • improvement: improved competitiveness through technological or logistical improvements to the company’s own products or services.
  • be different: if you offer something unique, you have nothing to fear from the competition. It is in precisely these niche strategies that young companies can distinguish themselves from the competition.

Without a clear strategy and priorities in the right direction, you run the risk of wasting resources. Strategic work prepares you for planning and carrying out specific activities as measures.