In relation to the flowchart that I developed recently as a guide to assist the development of strategy formulation I have been asked to clarify, “what are some of the key strategic areas”?

There are several ways this question might be answered. Let me start by saying that there are many factors that can drive and influence the capacity of a business in pursuit of growth strategies. However, in the first instance a business must possess an ability to make an attractive offer that meets or hopefully exceeds customer expectations. The nature of this capacity will be underpinned by such factors as:

 Quality of the value proposition
 Brand strength
 Market share & Competitive strength
 Effectiveness of the value chain
 Product/service differentiation (USP)
 Customer relationships & loyalty
 Economies of scale (compared to competition)
 Strength of competencies – structure, systems, technology & innovation
 HR skills, quality & effectiveness
 Leadership and entrepreneurial spirit
 Shared values & work/life balance

Just where the business is at in its lifecycle will have a direct bearing on the relative importance of these factors.

Overlayed with this is the degree to which the capacity of the business is linked with an adequately resourced and targeted marketing and promotional campaign. The identification of which customers, markets (or market segments), and for what purpose and likely return needs to be well researched and formulated. For example, strategies might involve the development of new or diversified products directed at new markets. Some of the drivers that can underpin markets include:

 Market size and segmentation
 Nature & variability of demand
 Market growth rate
 Competitive intensity, rivalry & regulations
 Pricing trends
 Profitability
 Risk, reward and regulation
 Distribution structure/channels

These are, therefore, some of the key areas and market drivers that a business could explore and focus attention on in order to develop strategies that will drive increased sales and profitability.