There are many strategies one can adopt in the business plan. Here we will discuss the market follower
strategy. It doesn't have as large a
potential as the market leader approach, but it also doesn't require the huge
resources of the latter approach. The top
three behaviors of this approach are to: 1) upset the cart, 2) get noticed and
3) hitch-a-ride.
First is to upset the cart. Here the
choice is to create innovations that the market leaders must address. The tactic is to force the leaders to change
their standards to address your innovations.
A positive result would increase your market share and your influence in
the market. This is exemplified by
Google™. They are forcing the market
leaders to change their perspective. This
business plan tactic takes great skill, great financing and business
stubbornness. Ultimately, you are
trying to get the market leaders to blink.
This is something the leaders don't want to do and work to avoid.
Second, you want the market to turn their head to you. This is similar to someone trying to attract
a potential new friend. You do things
that get you noticed in a positive light by the market and to establish the
business as important to be associated with.
Your business plan isn't to directly challenge the market leaders, but
to get them to notice and respond to innovations you have proposed and
introduced. This tactic is often used
by startups to position them for purchase by a market leader. Your goal is to defend your position and
instill new customer desires into the market.
If you are successful, you could become a market leader or a purchase
candidate.
Finally is the hitch-a-ride strategy. This
business plan strategy is normally associated with companies in industries that
are stable. This company type is content
to just follow the pack. They typically
don't innovate nor challenge the industry with new ideas. It's like they are worn out or have grown
old. They just plod along taking what
they can get, changing very little and running along with every one else. While they can survive and make money, they
are not stars and will not be market leaders unless they make significant
changes in how they do business. Of all
the strategies, this is a dangerous one for a new company and it is not
recommended that a business plan be created with this type of new business in
mind.
As has been shown, there are many strategies that aren't very aggressive. They are not star strategies and they won't
make the huge profits that other types of more aggressive strategies will. As a new business, you should consider a
more aggressive stance so that the chances of reward are much greater. True, other strategies are more risky, but
so are the rewards.
It is recommended that a more aggressive business plan and business be envisioned
than those of the strategies enumerated here.
To accomplish this, you would be better using a market leader strategy. There are both more rewards and risks, but
the company will be more vibrant.
Michael Russell
Your
Independent Business
Plan guide.
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