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20 Failure-Proof Business Strategies

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16 views39 pages

20 Failure-Proof Business Strategies

Uploaded by

ambhorepankaj56
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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To read it in Hindi, Click Here.

Overview

In this video, Dr. Vivek Bindra, the Founder and CEO of Bada Business Pvt. Ltd., shares 20 powerful failure-proof
strategies for business.

Learnings

A strategy is composed of three things:

Where are you now? – This is your existing state.


Where you want to be? – This is your objective.
How will you go? – This is your strategy to meet your objective.

Golden Statement:

Application execution business

Following are the 20 powerful failure-proof business strategies:

1. Leadership in Pipeline

Golden Statement:

Leaders don’t create followers, they create more leaders.

Leadership in pipeline helps you to:

Nurture leaders
Identify leaders
Identify the competencies of leaders
Plan leadership development
Step-ladder for the successful planning

There are different stages of the leadership pipeline model.

Managing self
Managing others/team
Managing the managers
Becoming the Functional manager (General Manager/Vice-President) and managing a department like:

Finance
HR
Marketing
Sales
Operations

Becoming the Group manager (CEO) and managing different departments


Becoming the Enterprise manager (Chairman) and managing the entire department

Different qualities are needed for different stages:


i. When you’re in the 1st stage, i.e., managing self to managing others, you must know how to:

Get things done


Communicate
Take Reports
Setting priorities
Design job
Delegate task
Company values

ii. When you enter the 2nd stage, i.e., managing others to managing managers, you must know:

Accountability
Effective delegation
Measuring progress
Getting results
Leading by examples
Building a strong team

iii. When you enter the 3rd stage, i.e., managing managers to functional head, you must:

Have the ability to see the bigger picture


Build a culture
Switch from operations to strategy
Have long-term strategic thinking
Understand that delegator is more responsible than delegate
Build and maintain manpower

iv. When you enter the 4th stage, i.e., functional head to the business model, you must know how to:

Manage multiple projects


Handle complexity
Business acumen
Finance for non-finance
Handle working capital

Balance sheets
Cash flow
P&L
Execution performance

v. When you enter the 5th stage, i.e., business model to CEO, you must know:

Managing & developing business heads


Building non-revenue pillars

Zoom in-zoom out


See bigger picture
Entry
Edge in execution
vi. Finally, when you enter the last stage, i.e., CEO to chairman, you become a risk taker.

2. Situational Leadership

Wrong leadership style can lead to:

Employees quitting
Disengagement
Low Productivity
Increasing Cost

Leadership is not person-based; it is task-based.

There are 4 different types of situational leadership:

i. Directing: If a new employee joins your company and doesn’t know the work, more than support he needs
direction.
ii. Mentoring: When he starts learning but needs improvement, then you should provide him with support.
iii. Listening & supporting: When he has acquired the skills and improving his speed, you need to support and
encourage him.
iv. Delegating: Finally, when he has learned and excelled, there is only the need for discussion and that’s how
delegation will come into practice.

Golden Statement:

You need to learn that an expert needs discussion and not direction but a new player/employee needs direction and not
discussion.

You should be authoritative with a junior, while prescribing and informing him.

You should be facilitative with a senior, while listening, supporting, and encouraging him.

3. Scoreboard Strategy

To make a scoreboard, you must give every individual and department their KPI (Key Performance Indicator).

Golden Statement:

People play differently when they have a scoreboard

For measuring the scoreboard of a department, you must focus on:

Performance
Skill & will
Productivity
Quality
Other parameters

Golden Statement:

Without self-evaluation, Failure is inevitable


For example:

The KPIs of the Digital Marketing department are:

Lead generation
Cost per lead
Social media traffic
Cost per sale
Daily, weekly, & monthly sales revenue
Social media reach & engagement

Website users
Page view
Average sessions
Bounce rate
Unsubscribe rate
Delivery rate

The KPIs of Content are:

Pageviews – Facebook
Leads generated per post
No. of views – average time spent
Average comments per post
Social media – no. of share
Keyword ranking

The KPIs of Finance are:

Payment error rate


Cash burn rate
Unit level costing/unit level margins
Net profit margin/gross profit margin
Accounts receivable turnover
Inventory turnover
Budget variance

The KPIs of Human Resource (HR) are:

Job satisfaction rate


Absenteeism rate
Recruitment:

Time to hire
Qualified candidates
Quality of hire
Cost per hire
The success of employee referral program

The KPIs of Training are:

Training spent per employee


Productivity rate

The KPIs of Information Technology (IT) are:

No. of critical bugs


Resolution rate – average handling time
Crisis management
Team attrition rate
Average downtime rate

The KPIs of Customer Service are:

Email backlog
Average talk time
Call pickup rate
Opportunity created
Inbound calls handled per agent per hour
Complaints Vs. resolution rate

4. Hoshin Kanri

Hoshin Kanri is a strategic execution model. For a visionary company, you need 1% vision and 99% execution.

Hoshin means direction and kanri means administration.

When combined, Hoshin Kanri means communication & execution in the right direction.

The rule of Hoshin is catch ball, which means communication through annual objectives and role/goal clarity.

The rule of Kanri is PDCA, which means reviewing.

Hoshin Kanri model is followed by Xerox, Toyota, and Radhey Shyam Dixit (Ananda Dairy).

It can also be done via Annual Operating Plan, which is done by budgeting VMOSA.

VMOSA stands for vision, mission, objective, strategy, and action plan.

Golden Statement:

Dream is what we see

Reality is what we execute

Nelson Mandela said:

5. Issue-Based Strategy
You can analyse the issue via SWOT analysis:

Strength
Weakness
Opportunity
Threat

Golden Statement:

Problems are not stop signs

They are guidelines

Issue-based strategy means identifying the issue, suggesting a solution, and including action.

Identify the critical issue that’s holding you back from being successful in the project, department, or company.

New initiatives include:

How to generate revenue?


How to generate revenue opportunities?
How to get products?
How to get volume?
How to give customer satisfaction?
How to recover from losses?
What is the streamline of operations?

Critical success factors are:

Cost reduction
Relationship building
Profitability
Customer Satisfaction Score (CSAT)
Design improvement
New product range
Vendor management
Customer retention
Customer reference
Customer loyalty
Productivity

Golden Statement:

9 out of 10 organisations fail to execute strategies

SWOT ANALYSIS

In SWOT analysis, S (strength) and W (weakness) are internal; they reside within your organisation while O
(opportunities) and T (threats) are external.

To recognise your strength, you must analyse:


Assets

Knowledge
Education
Network
Skill
Reputation

Physical assets

Customer
Equipment
Technology
Cash
Patent

To recognise your weaknesses, you must analyse:

Which process needs improvement?


Which asset needs investment?
Is there a gap in the team?
What’s your location?
What is your competitor’s edge?

To recognise your opportunities, you must analyse:

Market growth
Upcoming trends
Changes in market
Regulations
Government schemes in corona crisis

To recognise threats, you must analyse:

Potential competitors
New competitors
Raw material
Changes in technology
Customer behaviour
Changes in market trend

SWOT-analysis helps in analysing the issue and critical success factor.

Golden statement:

1. Success is 20% skill & 80% energy


2. A vision without a strategy remains an illusion
3.
6. Fortune at Bottom of Pyramid (BOD)

Poor people pay more because they don’t have a choice with local monopoly & bad product
The rural market, the bottom part of a pyramid, is the biggest market for products and people are forced to pay more for
bad quality/local products because they do not have many products/services to choose from.

Do you know:

45% of soft drinks are sold in the rural market


50% of motorcycles are sold in rural areas
60% of cigarettes are consumed by rural consumers
55% of FMCG products are sold in the rural market
50% of the national income comes from rural areas
50% of LIC policies are sold to rural consumers
Small SKUs contribute to over 40% of sales in rural areas

Various companies sell their products in rural markets in different forms so it is affordable for the people in rural markets.

FMCG – shampoo sold in sachets


Telecommunication – prepaid SIM cards/Reliance Jio
Car – TATA Nano/Alto/Wagon R
Consumer products – Chotukool (Godgerj refrigerator)
Food – McAloo Tikki Burger (McDonald’s)
Beverage – small PET bottles (Coca-Cola)

4 keys to unlocking the bottom of pyramid (BOP) market are:

Creating buying power


Shaping aspirations
Local solution
Access

The three layers of a pyramid indicate the three sections of the society:

Top pyramid – rich consumers


Middle pyramid – middle-class consumers
Bottom pyramid – poor consumers

If you work on middle pyramid, you can reach to bottom pyramid as well.

For example:

Top pyramid = Kingfisher, Middle/Bottom pyramid = Indigo


Top pyramid = Radisson/Taj, Middle/Bottom pyramid = OYO
Top pyramid = Airtel, Middle/Bottom pyramid = Jio
Top pyramid = Meru cabs, Middle/Bottom pyramid = OLA

You can achieve success from BOP, if you can:

Educate (semi-literate) people in product usage


Give affordable price
Transport across countries & cultures
Manufacturing efficiency
3 As and 3 Ds of marketing for BOP are:

3 As: Awareness, Affordable, Available


3 Ds: Design, Demand, Dignity

7. Scenario Analysis

Golden Statement:

Walking the battlefield before the battle commences

For scenario analysis, you must explore future possibilities that will help you in:

Reducing uncertainty
Resolving complexities
Decision-making
Knowing current potential
Control failure

You need to do scenario analysis in the following scenarios:

Product launch
Investment
Innovation
Games
War
Business

For every decision, there are 2 outcomes and every outcome has at least 1 scenario. You must think of that scenario in
advance.

Steps to do in scenario analysis:

Step 1: Brainstorm future scenarios like:

Lifecycle of product
Political conditions
Competition analysis
Technological advancement

Step 2: Identify trends & driving forces

Change in the mindset of:

Supplier
Customer
Competitor
Employees
Shareholders
Government policies

Assess internal capability & disability


Step 3: Develop a scenario

Step 4: Check the degree of uncertainty

Will the customer give advance payment?


Will the customer become a buyer or a bargainer?
Technology & government factors

8. McKinsey 7s Framework

Golden Statement:

Key to a successful learning environment is structure

With the help of 7S, you will understand the organisational assessment of your company.

The 7S are:

Strategy
Structure
System
Shared value
Style
Staff
Skill

Out of these 7, the top 3 S are hard skills and the bottom 4 S are soft skills.

Hard skills are decided by the leadership/top management and soft skills are decided by the whole organisation.

7S are used for:

Organisational change
Implementing new strategy
Merger of organisations

i. Strategy is used to understand:

Organisational goal
Market competition
Consumer demand
Execution problem

It helps you in answering these 4 questions:

What is our strategy?


How do we intend to achieve it?
How do we deal with competition?
How will we deal with changes in consumer demand?

ii. Structure helps you understand:

Role
Responsibility
Authority
Hierarchy
Department-division
Decision-making

For example:

Infosys has created an Industry Business Unit (IBU) for different industries like:

FMCG
Pharma
Retail
IT

iii. System helps you in understanding:

Method
Procedure
Process
Daily activity
Measurement
Which process, procedure, & routine to be followed?
How to control?
How to communicate?
How to use technology?
How to use CRM?
How to send emails?

iv. Shared values help in understanding company’s:

Culture
Values
Standard principles
Beliefs
Team culture

For example:

Infosys’ shared values are called C-LIFE, which signifies:

C – client-focused company
L – leadership by example
I – integrity
F – fairness
E – excellence

v. Style helps in understanding:

Approach of leadership
Employee participation in decision-making
Leadership effectiveness
Competitive or co-operative
Authority or collaboration

vi. Staff helps in determining:

Right person at right position


Manpower planning
Positions need to be filled
Team specialisation & positions available

vii. Skill helps in determining:

Current skills set


Training & development needs
Coaching & mentoring needs
Skill gaps
Ability to do the job

Golden Statement:

Formal education

Self-learning

9. Market Barrier – Entry/Exit/Switching

Entry barriers

You should create barriers that nobody will be able to overtake you.

For example:

Intellectual property protection – Microsoft


Patent & licensing – Pharma Industry
Distribution network – Unilever/Pepsi
Exclusive rights – Flipkart/Xiaomi
Proprietary technology – Krypton (OYO)
High capital investment – Reliance Jio
Economies of scale – Big Bazaar
Brand equity – MSeal & Fevicol
Excellent customer service – Domino’s
Loyalty beyond logic – Apple
Ongoing innovation – Hindustan Unilever
National sentiment – Patanjali Ayurvedic
Subscriber base – India Today
Product differentiation

Quality – Apple
Price – Xiaomi

Trust
Efficient manufacturing – McDonald’s
Quality & reliability – Toyota Innova
Cost of convenience – iOS & Android
Personality – Dr Vivek Bindra

Golden Statement:

The greatest barrier to success is the fear of failure

Exit barriers

There are many businesses from which you cannot take an exit because of the following factors:

Not able to capture market shares


Less profit
Highly specialised asset
Tax breaks & grants
Expensive clean-up cost
Difficult exit in airlines if:

Low scrap value


Age of the planes

Tariffs, quotes, & trade restrictions


Heavy marketing spending
Emotional barrier
Social restrictions
Loss of customer goodwill

You must create switching barriers to stop customers from leaving by:

Punishing switching barrier (life insurance)

Exit fees
Complicated T&Cs

Rewarding switching barriers

Frequent Flyer Points


Loyalty cards
Personalisation/customisation
Make switching difficult (CRM)
Reward (Mobile phone portability)

Exit fees
Search cost
Technical cost
Learning cost
Equipment & infrastructure cost
Start-up cost
Financial risk
Time & effort
Emotional & psychological risk
Social risk
For example:

1. Microsoft

Microsoft used the same barrier by giving great services that now:

People barely know alternative.


People are intimidated to learn something new.
Equipment & infrastructure costs.
Installation & configuration costs.

2. Apple

It has integrated its devices in such a way that you not configure other brand devices or apps and the customer can’t switch
to any other device.

3. Coca-Cola

It has created a brand loyalty.


It is a patented product.
It has created vertical integration.
It is a first mover.
It has created geographical barriers.
It has economies of scale.

Golden Statement:

10. Mapping Strategic Risk – Risk Mapping + Mitigation Risk

Types of risks:

Liability risk
Design risk
Competitive risk
Operational risk
Compliance risk
Marketing risk
Project risk
Innovation risk
Security risk
Economic risk
Procurement risk
Liquidity risk
Infrastructure risk
Market risk
Merger & acquisition risk
Exchange rate risk
Health risk
Macro risk
Inflation risk
Golden Statement:

Types of matrix:

1. Probability impact matrix

You must focus on the risk that has the higher impact and can avoid risks with lower impact.

2. Control impact matrix

It means the risk that might have a great impact but can be controlled.

Golden Statement:

, ,

11. Strategy Traps

Golden Statement:

No algorithm can guarantee sustainable competitive advantage forever

Types of strategy traps:

Anchoring trap

Status quo trap

Sunk cost trap

Confirming evidence trap

Framing trap

Overconfidence trap
Prudence trap

Recent event trap


Do-it-all trap
Centre stage trap

Waterloo trap

Something-for-everyone trap

Survivorship bias trap


Playing my favourite trap
Winning too much trap
A belief that I’ve succeeded trap
Golden Statement:

12. Competitive & Collaborative Strategy

Competition

Weak are overthrown


Eco-system of insecurity
Highly addictive
Makes you faster
Resentment
Possibility of malicious behaviour

Collaboration

Weak also joins you


Eco-system of contentment
Highly comforting
Makes you better
Camaraderie
Possibility of laziness

Examples of combination of competition & collaboration are:

Deliveroo + Uber
Microsoft + Intel
Pfizer + Merck

Ways to collaborate with competitors:

Co-organise an event
Podcast interview
Conducting online business meetings
Mutually exclusive collaboration
Business merger or joint venture
Charity
Enter a new market
Bulk purchasing
Cross endorsement
Join complementary business
White labelling

13. Business Canvas

Business canvas defines how you create, deliver, and capture value.

The 8Ps of Business Canvas are:


i. Problem

When you understand the problem of the customer, you will be able to:

Evaluate market
Customer-centric
Consumer needs
Money making model
Urgency
Customer needs will give business leads
Reverse production gives real innovation

To understand the problem, you must ask two questions:

What is the burning problem of the customer?


How do you solve it in such a way that the customer can never solve it without you?

ii. Prospect

People don’t like to be sold; they like to be helped

To recognise your prospect (customer), you must:

Understand their behaviour


Identify touchpoints
Identify total addressable market size (TAM)

iii. People

After determining the problem and prospect, you must hire people.

To hire people, you must:

Check how they communicate


Engage family members
Motivate, retain, and engage employees
Change management
Be a good listener

iv. Product

To make a good product, you must have:

MVP (Minimum Viable Product)


Financial discipline
Low-cost
Eco system
Technology for scaling
Asset-light
Pilot experiment

v. Pricing & Positioning


For pricing & positioning, you must understand:

Low-cost competitors
Brand promise
Call to action
Jingle
Upsell/cross-sell
Lifetime value of the customer
Experimental marketing
Brand loyalty
Cross-promotion
Brand equity

vi. Process & Performance

If pilot experiment goes well and you are good with pricing & positioning, you can elevate to next step of process &
performance by:

Expansion
Introduce productivity formulas
Build key performance indicators (KPIs)
Hire manpower
Convert loss-making into profit-making
Turn regional into scalable
Execution frameworks
Commercialisation launch & ramp-up
Channel partner
Supply chain
Promotion
Scalability

vii. Profit

After a good performance, you can:

List company to BSE & NSE


Fundraise
Build revenue streams
Franchise model
Distribution model
Build distributor & retail model
Adapt sales models
Maximise off-season sales
Cost-benefit analysis
Build improvement cycle
Improve mistakes
Create SOP process

viii. Purpose

Purpose refers to the core value of the company. It includes:

Key partners
Key activities
Value proposition
Customer relationships
Channel key activity
Cost structure
Revenue stream

Golden Statement:

14. Repeatable Prototype

SOP helps in running a process-driven business, which benefits the business in the following ways:

Scale-up
Efficiency
Quality
Uniformity
Decrease in miscommunication
Automation

The 4 prototypes of repeatable business are:

i. Process automation

It can be done by implementing technology in the business, like dialer, CRM, chatbot, etc.
It helps in reducing cost, saves time, and maximises scale.

ii. Process improvement

It means improving the existing process, increasing quality standards, and kaizen.

The techniques of process improvement are:

Visual representation chart


Process diagram of workflow
Fishbone diagram
Histogram chart
Scatter diagram
Pareto chart

iii. Process integration

It helps in:

Linking inter-organisational operations


Enables department integration
Improves business flow
Enhances communication with internal & external clients

iv. Process orchestration

Time, money, and effort are synchronised for a standardised process.


It helps in:

Increasing efficiency
Defining roles from point A to point Z

For example:

Process orchestration for online videos in Bada Business is done in the following sequence:

Speaker
Content curation
Video production
Post-production
App integration
Sales & marketing
Reach customer

You can define a person’s role by:

Defining role
Create a flowchart of the sequence
Creating an assembly line

Hotel’s follow a process for smooth process orchestration:

R – Responsible (Cleaning Staff)


A – Accountable (Floor Manager)
C – Consulted (Super Specialist)
I – Informed (General Manager)

For example:

IZUSA diamond made their business successful by making it:

Scalable
Affordable
Distributors
Decreased cost

Golden Statement:

1. Teamwork makes the dream work


2.
15. Sustained Competitive Advantage

It can be attained with the following framework:

V – Valuable
R – Rare
I – Inimitable
O– Organised
5 factors defining increase or decrease in profit:

Bargaining power of supplier


Bargaining power of customer
Product substitute available
Threat of a new competitor
Threat of existing competitor

Golden Statement:

Continuous learning continuous earning

learning invest earning

16. Product Metrics

Market penetration – selling more in the same market


Product development – introducing a new product
Market development – selling product in international market
Diversification – introducing new product in new market

17. Product Life Cycle

Golden Statement:

Recycle is important for life cycle

Adoption curve means that one needs to understand people’s behaviour, and identify customer’s signals.

Types of adopters:

Innovators
Early adopters
Late majority
Laggards

Adoption curve starts from one end, goes high in the middle and then after getting for some time, ends.

Examples of adoption curve:

Travel Agents replaced by travel websites


Financial advisors replaced by e-portals
Stationery replaced by Kindle
Electricity replaced by solar
Ration shop replaced by e-commerce websites
Vehicles replaced by a driverless system
DVD replaced by YouTube
Blockbuster replaced by OTT Platforms
Car sale replaced by online taxi service
Restaurant replaced by online food delivery
Trader/Retailer replaced by online market
Tuition classes replaced by online studies
Brick & mortar business replaced by aggregators
Voice calls replaced by internet usage
Broking business replaced by aggregators

The 4 stages of a product are:

Introduction
Growth
Maturity
Decline

If the margin and sales of your product are declining, do not splurge on advertisement; it’s time to change the product.

Golden Statement:

Education is the key to unlock golden door to freedom

18. Pricing Strategy

Golden Statement:

The moment you make mistake in pricing, you’re eating your profit

Pricing strategies are:

Milking & skimming pricing

Profits from the existing products.


This works when there are fewer competitors.
You can make good profit with even high prices.

Loss leading strategy

Decrease the cost


This will kill competition.
This won’t be beneficial if the demand gets high.

Penetration pricing

Sell the product on same price.


Break-even price
It is used for aggressive marketing.

Predator pricing

This reduces the cost to a limit that people get unfair market advantage.
This forces competitors to leave the market.
It also creates a market monopoly.

Barrier pricing

This helps in creating new entry barriers according to the market.

Understand COGS (Cost of goods sold)


Create quantified value
Accessibility to decision -maker
Identify market options
Product lifecycle

Henry Ford said:

Anyone who keeps learning stays young forever

19. Optimised Scale

Golden Statement:

Knowledge shared = Knowledge²

Mass customisation helps in:

Getting uniqueness
Build customer relevance
Mass scale production
Customer satisfaction
Modified product
Better choice
Right cost
Customer convenience

Mass customisation applies to:

Passport cover
Diary
Pen
Office stationery
Bag
Wallets

For mass customisation, you must answer the following 4 questions:

What do customers want?


How to build operational capability?
How to reduce cost?
What will be the impact on other products?

Types of mass customisation:

Collaborative: When customer & producer work together to meet requirements. It applies to desktop computer,
tailor-made clothes, furniture, construction, etc.
Adaptive: When a customer can use one product for multiple purposes like:

MUV (Multi Utility Vehicles)


Mood changing bulb
Reversible clothes
Multi utility bags
Multi utility Swiss knife
Sofa cum bed
Folding furniture

Cosmetic: When there is no change in the product but appearance & packaging are changed like t-shirts, mugs,
pens, cushions, etc.
Transparent: When customisation is done by predicting customer requirement to scale like:

Everything About Entrepreneurship (EAE)


Subway
Pay-per-use software
Shared offices (co-working space)
Range of cabs
White labelling B2B sales

20. Advantage of Advantages

Types of advantages:

Absolute advantage: Less cost, less price


Price advantage: Either sell at competitor’s price for more profit or sell lower than competitor’s price for more
market share
Economic advantage: It is attained by:

Critical mass
Volume
Market power
Network effect

Information advantage: Your unique and tactical knowledge gives more growth than others.

It is also called competitive superiority that comes with knowledge.

Relative advantage: Discrete choice conjoint like:

Mineral water – Bisleri


– Coca-Cola
Car – Maruti
Life Insurance – LIC
Business training – Dr Vivek Bindra

Suppliers advantage
Economies of density
Economies of scale: gives cost advantage for scale of operations. It increases cost per unit and indicates efficiency
& productivity of an organisation.

It can be achieved by:

Technology
Specialised labour
Bulk-buying
Better financial management
Network

Economies of scope: Creating variety of products with the same infrastructure reducing the cost, while using
sharing of inputs and joint utilisation of inputs.
The new product can be made using:

Same production equipment


Same supplies
Same storage
Same distribution channel

Economies of learning: Increasing individual skills to an extent that cost reduces


Economies of process: Innovating the process with advanced machines and rapid process to reduce the cost
Economies of design: When you create a standardised design and use it for all projects to reduce the cost
Input costs

Local advantage
Ownership of low-cost inputs
Non-union labour
Bargaining power

Capacity utilisation: When you use same products to make another product
Human resources: It reduces the cost with the help of motivated employees and organised culture

Golden Statement:

Key Learnings

Create entry/exit/switching barriers to create your monopoly in the market


Understand strategy traps to avoid getting into them
Create a process-driven business through repeatable prototype
Implement the business strategy according to your business type

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SKUs 40%

FMCG –
(Telecommunication) – SIM /
– TATA //
– ()
– ()
– PET (-)

(BOP) 4 :


-
-

= (Kingfisher), / =
= /, / = OYO
= , / = Jio
= , / = OLA

BOP , :

BOP 3 As 3 Ds :

3 As: (Awareness), (Affordable), (Available)


3 Ds: (Design), (Demand), (Dignity)

7. (Scenario Analysis)

:
, :

,2 1

1: :

2:

3:

4:

?
- ?

Golden Statement:

80 20 ,

8. 7s

7S

7S :
7s 3s 4s

7S :

i. :

4 :

?
?
?
?

ii. :

( )
-

(IBU) :

FMCG
IT

iii. :

, ?
?
?
?
CRM ?
?

iv. :
:

C- LIFE , :

C–-
L– (Leadership by example)
I–
F–
E–

v. :

vi. :

vii. :

9. - //

– (Microsoft)
-
- / (Unilever/Pepsi)
/ - / (Flipkart/Xiaomi)
- (OYO)
- (Reliance Jio)
- (Big Bazaar)
- (MSeal and Fevicol)
– (Domino’s)
– (Apple)
- (Hindustan Unilever)
- (Patanjali Ayurvedic)
- (India Today)

– (Apple)
– (Xiaomi)

– (McDonald’s)
– (Toyota Innova)
– iOS (Android)
– . (Dr Vivek Bindra)

,,

– ,:

:
/
(CRM)
( )

1. (Microsoft)

2. (Apple)

3. - (Coca-Cola)

10. - + (Mapping Strategic Risk – Risk Mapping + Mitigation Risk)

/ :
:

1. (Probability impact matrix)

2. (Control impact matrix)

, ,

11. (Strategy Traps)

--
:

12.

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Common questions

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Economies of scale and scope enhance corporate efficiency by reducing per-unit costs through mass production (scale) and diversifying product lines utilizing shared resources (scope). These economies allow companies to leverage their production and distribution capabilities to gain competitive advantages, such as lower costs, increased market power, and the ability to offer a wider range of products. The efficiencies gained improve profitability and market positioning against competitors .

Sustained competitive advantage, assessed through the VRIO (Valuable, Rare, Inimitable, Organised) framework, allows businesses to maintain superiority in their market. Essential elements like unique resources and capabilities provide benefits that are valuable and difficult for competitors to replicate, thereby ensuring long-term profitability and market leadership. Strategic alignment with these factors enables efficient resource organization and maximizes market impact .

The Fortune at the Bottom of the Pyramid emphasizes the untapped market potential among low-income consumers. By addressing the needs of this segment through affordable pricing and innovative distribution, businesses can unlock significant market growth. This approach necessitates creating buying power, shaping aspirations, and providing local solutions. Additionally, companies can capture value from this market by promoting awareness, availability, and affordability (3 As), and focusing on design, demand, and dignity (3 Ds).

Technology advances and government regulations are critical external factors in SWOT analysis affecting both opportunities and threats. Technological changes can enhance operational capabilities or disrupt existing processes, necessitating adaptability. Similarly, government policies can either create opportunities through favorable conditions or pose threats via restrictive regulations. Analyzing these factors helps organizations anticipate and prepare strategically for market dynamics .

Key pricing strategies include skimming, penetration, loss leader, and predatory pricing. Skimming involves setting high initial prices when competition is low, maximizing profit margins. Penetration pricing seeks market entry by offering low prices to capture market share. Loss leading reduces prices below cost to attract customers, often used short-term. Predatory pricing reduces prices to eliminate competition, though it's riskier and might create legal challenges. Businesses choose strategies based on market conditions, costs involved, and competitive landscape .

Hoshin Kanri facilitates strategic execution by aligning company direction (Hoshin) with effective management (Kanri) through communication and goal clarity. It incorporates the PDCA (Plan-Do-Check-Act) cycle for continuous review. VMOSA (Vision, Mission, Objectives, Strategy, Action Plan) complements this by structuring strategic planning, ensuring that each step aligns with organizational goals, resulting in effective execution of the company's long-term vision .

Issue-based strategy involves identifying critical issues, suggesting solutions, and implementing actions to overcome obstacles. SWOT analysis is integrated into this by examining internal strengths and weaknesses (assets, skills, processes needing improvement) and external opportunities and threats (market growth, competitor presence). This holistic view helps in addressing issues effectively, ensuring alignment with critical success factors like customer satisfaction and cost reduction .

Scenario analysis aids strategic planning by envisioning diverse future possibilities, allowing businesses to reduce uncertainties, resolve complexities, and make informed decisions. By exploring multiple outcomes for events like product launches or market investments, organizations can better anticipate challenges and opportunities. This process involves identifying trends, assessing capabilities, and considering the degree of uncertainty, ultimately improving decision-making and strategic resilience .

Mass customization enhances customer satisfaction by offering products that meet specific customer desires, increasing relevance and uniqueness. Operational efficiency is achieved through mass-scale production that maintains the right cost and convenience. Different customization types, like collaborative and adaptive, enable businesses to tailor products while leveraging economies of scale, thereby optimizing the production process and maintaining customer appeal .

The Product Life Cycle consists of introduction, growth, maturity, and decline stages, each impacting strategic decisions differently. During decline, for example, it is advised not to invest heavily in advertising but rather innovate or modify the product to adapt to market changes. Understanding the life cycle helps businesses allocate resources wisely and develop strategies for market penetration and product development suitable for each stage .

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