This week in Mikes Bikes was a bit of a bumpy ride for our team. Since we had done so well last week, there was a looming pressure for us to repeat our success. Yet looking at the market it showed how the game is getting more and more tight. And we found that most competitors in our region had launched bikes in each segment; some had even doubled up products.
During the week I found it the first time I was genuinely worried about what would happen on Thursdays rollover. I and everyone else in the team scoured the data and hoped we could see openings in the market for us. In the middle of the week we decided to change our strategy all together, which was shocking, as we had stuck to it since the start. I would have thought this change was a lot more outrageous if not for this weeks reading. In “Is your growth strategy a flying bird?” by Baghai, Smit and Viguerie, they described the three points that can be used to grow a business. I straight away identified with this idea as it’s exactly what was called for to take our SHV higher.
The first point is identifying micro-segments for customers, regions and products with the strongest market momentum. I can definitely say I did this after reading this and as I am the marketing manager it was very appropriate as its part of my job description. Realising where the opportunities were in the market with the most potential wasn’t a hard job but guessing the movements of the other competitors was. The second step in the process of business growth was to invest resources for R&D and advertising for lower growth segments. We decided to do this and put money into the segments that we were invested in but were lower priority than our top segements. This helped to balance us out and made sure we didn’t neglect any segment. The last point according to Baghai, Smit and Viguerie is to re structure your organisation and assign each micro segment to an accountable leader. Well in our teams case each person already is in charge of a particular aspect of mikes bikes so we felt this points could be skipped.
By implementing the first and second points we were able to overcome the daunting task of getting a good chunk of the market. Although hesitant about using a new strategy, it completely paid off as our rollover SHV skyrocketed and it was clear all the decisions we made were the right ones. From this week I have learned you need to put in the effort and analyse everything to ensure you are informed enough to make the right move. Also using the readings help you by giving you advice and information, which aids your team decision-making process. I feel that this weeks change was good and the use of the points was a key reason for our success. Hopefully each week the readings contain more helpful hints how to achieve a higher and higher SHV.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86---96.