Competitive strategy has been one of the main focuses for the team this week following a somewhat challenging rollover. Operating within a very unpredictable environment such as Mikes Bikes makes the analysis of your competitors vitally important. If done successfully, this is the key to finding an effective positioning strategy that will strengthen market share within the current market. Baghai, Smit & Viguerie, (2009) suggest that many companies do not utilize the mass information available to them in today’s society. They also state that modern technology has presented the opportunity to analyse the market microscopically, permitting exponential advancements of knowledge, both on your own company as well as your competitors. This concept has been identified as the fundamental contributor of strategic growth development. Relating this to our own experiences indicate that we may need to analyse our operating environment in more detail, in order to strengthen the accuracy of our decision making process. The software provides each team with a vast number of reports and trends to examine and some attention must be given to assure we do not miss potentially significant information. While we are currently doing an adequate job of this, we at times will guess as to what we think will happen next. By searching for actual evidence of such trends however, we may be able to better prepare ourselves for the rollovers ahead.
By definition, a growth strategy is how you plan and prepare for the ongoing future. I think this has also played a significant part in our successes and failures over the past 9 weeks. While it is important to stay focused on the week at hand, a lot of focus within the group goes towards our long term aspirations. Ultimately we understand that it is where you finish that counts, which is why it is important to constantly assess the direction the company is headed. Unfortunately we may have slightly lost sight of this last week, which contributed to some over spending in certain areas. While this negatively affected our results in the short term, it is still unknown whether this investment will prove to be successful in the long term. Again Baghai, Smit & Viguerie, (2009) analyse potentially factors effecting long term growth. These 3 factors where mergers and acquisitions, market share gains and collective market growth. Collective market growth is something particularly relevant to our company, as this overspending by many firms within our market, has led to substantial declines in industry profit due to intense competition between rival firms. This is something we will have to address this week, as well as merger activities which are likely to become a more prominent area of focus as the game progresses.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is Your Growth Strategy Flying Blind? Harvard Business Review, 87(5), 86-96.