Auxiliary tools for creating and analyzing product strategy
Posted: Sun Dec 22, 2024 10:42 am
Below is a description of some useful tools used in strategic planning:
SWOT analysis
Title Explanation:
S : Strengths.
W : Weaknesses;
O : Opportunities.
T : Threats.
With the help of SWOT analysis, you will study your own business more deeply and find its weak points. You will also discover possible threats that can have a negative impact on the company.
Porter's Five Forces Methodology
It helps to understand what economic japan phone number levers work in your field of activity, to determine the position of your own business in relation to competitors. Analysis according to Porter's Five Forces involves research:
the level of competition in the industry;
opportunities for new participants to enter the arena;
the degree of influence of suppliers on the market situation;
level of consumer power;
the possibility of releasing analogues that can replace your product.
Porter's Five Forces
PESTLE analysis
With its help, you study the macro environment surrounding your business, which allows you to more thoroughly and effectively develop the strategy of the proposed product and the activities of the entire company. The abbreviation of the name PESTLE includes the following factors subject to analysis:
P – political.
E – economic.
S – social.
T – technological.
L – legal.
E – ecological.
Vision technique
It consists of imagining your company as you would like to imagine it in the future. Identify future goals, and then think about how to achieve them, how to develop the business in the coming years, what steps to take. In this way, you will develop a strategy for future actions.
VRIO analysis
This method of building a competitive product strategy is aimed at identifying the special advantages of your product (service). VRIO analysis includes:
V – Value: Do your customers get some value from you?
R – Rarity: Do you have any special resource or technology at your disposal?
I – Imitability: will it be easy to imitate if competitors set this goal?
O – Organization: Does the company have a base (systems, processes) that will allow you to effectively use the available resources?
All this will help to prepare an effective strategy, during the implementation of which your consumers will receive a product that most relevantly meets their needs.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
4 Mistakes in Product Strategy Development
Goals are equated with strategy
However, this is not the same thing at all.
There are no strict definitions for these concepts, and even members of the same team may perceive them differently. To put it simply, strategy is the path to success, and the goal is what you achieve by winning. For example, for a chess player, the first is the sequence of moves on the board, and the second is winning the game.
It is wrong to say: "Our strategy is to get 20% more profit!" This is precisely the goal. And strategies to achieve it can be applied differently: to cover new markets, for example, or to increase the conversion between testing a free sample and the first purchase, etc.
Achieved goals are equal to the strategy implemented
In reality, the degree to which the product strategy is being implemented shows whether the team is moving towards its goal.
Most often, companies practice tracking short-term priorities because this is the easiest way. But it happens that a goal is achieved without any connection to the strategy. It could have been initially adopted without taking into account long-term plans, or it was outlined based on erroneous data. And for strategy, the external conditions of business existence (market characteristics, competitors' behavior) are also very important. Therefore, it is important to understand the difference between following a long-term policy and achieving short-term goals. If you do not attach importance to strategic progress, then in the future the company will certainly have problems.
SWOT analysis
Title Explanation:
S : Strengths.
W : Weaknesses;
O : Opportunities.
T : Threats.
With the help of SWOT analysis, you will study your own business more deeply and find its weak points. You will also discover possible threats that can have a negative impact on the company.
Porter's Five Forces Methodology
It helps to understand what economic japan phone number levers work in your field of activity, to determine the position of your own business in relation to competitors. Analysis according to Porter's Five Forces involves research:
the level of competition in the industry;
opportunities for new participants to enter the arena;
the degree of influence of suppliers on the market situation;
level of consumer power;
the possibility of releasing analogues that can replace your product.
Porter's Five Forces
PESTLE analysis
With its help, you study the macro environment surrounding your business, which allows you to more thoroughly and effectively develop the strategy of the proposed product and the activities of the entire company. The abbreviation of the name PESTLE includes the following factors subject to analysis:
P – political.
E – economic.
S – social.
T – technological.
L – legal.
E – ecological.
Vision technique
It consists of imagining your company as you would like to imagine it in the future. Identify future goals, and then think about how to achieve them, how to develop the business in the coming years, what steps to take. In this way, you will develop a strategy for future actions.
VRIO analysis
This method of building a competitive product strategy is aimed at identifying the special advantages of your product (service). VRIO analysis includes:
V – Value: Do your customers get some value from you?
R – Rarity: Do you have any special resource or technology at your disposal?
I – Imitability: will it be easy to imitate if competitors set this goal?
O – Organization: Does the company have a base (systems, processes) that will allow you to effectively use the available resources?
All this will help to prepare an effective strategy, during the implementation of which your consumers will receive a product that most relevantly meets their needs.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
4 Mistakes in Product Strategy Development
Goals are equated with strategy
However, this is not the same thing at all.
There are no strict definitions for these concepts, and even members of the same team may perceive them differently. To put it simply, strategy is the path to success, and the goal is what you achieve by winning. For example, for a chess player, the first is the sequence of moves on the board, and the second is winning the game.
It is wrong to say: "Our strategy is to get 20% more profit!" This is precisely the goal. And strategies to achieve it can be applied differently: to cover new markets, for example, or to increase the conversion between testing a free sample and the first purchase, etc.
Achieved goals are equal to the strategy implemented
In reality, the degree to which the product strategy is being implemented shows whether the team is moving towards its goal.
Most often, companies practice tracking short-term priorities because this is the easiest way. But it happens that a goal is achieved without any connection to the strategy. It could have been initially adopted without taking into account long-term plans, or it was outlined based on erroneous data. And for strategy, the external conditions of business existence (market characteristics, competitors' behavior) are also very important. Therefore, it is important to understand the difference between following a long-term policy and achieving short-term goals. If you do not attach importance to strategic progress, then in the future the company will certainly have problems.