Buyers seek solutions that are no more costly than the problem currently endured. Your comparison of each factor to the new venture provides a summary that is a measure of the venture s probability for success and also an indication of the amount of startup capital required. In the endeavor to deliver greater value to customers and create comparable value at lower cost than competitors, the entrepreneur must consider and carry out hundreds of activities to market the firm s products. While the entrepreneur s ability to carry out these activities better than the competition is important to operational effiency, being able to perform different activities or similar activities in ways that are different from the competition are the essence of strategic positioning. A strategic position is created when every activity is directed toward strategic choices that deliver a sustainable competitive advantage.
Tradeoffs are necessary.
The successful company over the long term will not only do things right and seek continual improvement and greater flexibility, it will also do the right things, make clear tradeoffs and establish activities that contribute to the core competency of the venture. Robert D. Gillis CMC is the president of R.D. Gillis Company, a consulting firm that offers solutions to organizations seeking to define and achieve strategic goals, reduce risks and leverage resources. Please take a moment to visit our sponsors.