GEOStrategy

Are you Ready To Grow Again?

A number of economists have predicted recovery in the third to fourth quarter of 2009 with slow growth through 2010. Firms that have become more efficient, more focused and have used this period to strategically position themselves in the right markets with the right customers will benefit.  Those that have merely survived will find the recession lasting longer for their organization. 

Now is time for leading companies to focus on the three “R’s”:   Refocus; Retool; Recover.  Let’s take them in reverse order.

Recover

With or without government intervention, markets run in business cycles: expansion follows contraction.  However, it is an economic reality that some sectors will recover faster than others.  The recent market correction will have a transformative effect on specific sectors- moving some into long-term decline and others in the opposite direction.  New sectors will emerge as growth engines.  Public sector spending will create near-term opportunities for some firms, but the private sector presents specific opportunities as well. 

Most likely, your go-to-market strategy and business model are geared for the economic expansion of 2003 - 2007.  The reality is that different sectors will fuel growth in the 2010 and beyond economy.  Customers’ buying behaviors will change as different value drivers emerge and the competitive landscape shifts.  Mergers, acquisitions, and bankruptcies by customers and competitors will shift the playing field at the same time that material prices and global demand change pricing economics. 

Customers may be open to new innovative suppliers.  Acquisition and new market opportunities may emerge. To be ready to compete, you need to retool your business model. The place to start is a reassessment of the competitive landscape and the first step in creating sustainable competitive advantage is to strategically position the organization for growth.  Then you need to formulate and implement a go-to-market strategy. Geo Strategy Partners’ research practice provides dynamic competitive intelligence proving insight into the changed playing field that emerges from an economic paradigm and player shift.  Our more progressive clients are currently looking to our strategy consultants to help them strategically reposition for growth; develop winning go-to-market strategies; and to carry out strategic acquisitions and divestitures.  The first step, however, is to retool.

Retool

A growing market conceals a lot of sins.  During the recent growth curve, sales and marketing initiatives may have gotten a little sloppy.  Nothing highlights inefficient operations or ineffective efforts like a contracting market.   Companies that survive a downturn in the strongest position will be the ones that listen, anticipate needs, and focus fanatically on serving customers.  When sales slow, it is essential to make the effort to listen to customers and then sharpen your sales and marketing tools accordingly with the right messaging and right solutions.

A first step to revamping and re-energizing sales and marketing initiatives is to understand the Voice of the Customer.  Geo Strategy Partners employs a number of qualitative and quantitative research techniques to help clients elicit both articulated and unarticulated customer demands.  Because customers sometimes say they value one thing while actually choosing suppliers that offer something very different, we employ methodologies to analyze hidden motivators as well as stated ones. 

We also examine customer satisfaction and customer loyalty: important future sales indicators in uncertain times.  We rank value drivers by the minimum required to compete (the cost of entry); those that are crucial to create a differentiating competitive advantage; and finally those that our clients can capitalize on to drive brand preference; an extreme version of customer loyalty.  While it is always important to understand your customers, right now it’s paramount.

Refocus

As we approach what we hope is long-term recovery, now is the time to think strategically and ask fundamental questions.  Which market sectors will be growing? What has changed in the competitive landscape?  What will drive buying decisions?  Where should I invest my sales and marketing resources?

Geo Strategy Partners helps clients determine the best markets for best products and services.  We build detailed market attractiveness models, rating and weighting the market opportunity on one axis against a variety of attributes (including client internal strengths) on the other.  Models can be simple or highly sophisticated but at a minimum they require secondary market research, primary executive interviews with customers, influencers, and specifiers, competitive intelligence, and strategic analysis.

If you are looking to retool, refocus, and reposition for recovery, contact us and let us explain how we can help you determine where you are, where you need to be, and how to get there.