Why is Strategy Important in the On-line World
Why Is Strategy Important In The On-line Business World?
"Learning is not compulsory... neither is survival." - W. Edwards Deming (1900 - 1993) US Business Advisor & Author
The vast majority of people doing business on-line are not thinking strategically. They are jumping from one interesting “opportunity” to the next. They buy the ‘hot’ product of the day, the product that promises ‘instant riches’, the product that says you can sit back and ‘make money in your sleep’. Perhaps most fascinating of all is that they rarely even use what they have bought. They buy, put it aside, and move on to purchasing the next product, and the next, and the next.
These people are easy targets. Savvy entrepreneurs know that all they have to do is put a good website up, get a group of respected ‘gurus’ to help promote their product, write a good sales letter, and sit back and watch their sales numbers climb. They know that most people are looking for the quick hit, the foolproof money-making method that will put them on easy street.
The funny thing is; many of the folks who are selling these products are not inherently dishonest. They don’t get up in the morning thinking of ways to scam people out of their hard earned money – but they will get it anyway.
This will happen because most of their customers lack an overarching strategy. They think that having a product (even if you and 500 others have the same product), and a website equals having a business. They do what they think will work, or what worked for someone else.
Here is a hard fact: the vast majority of businesses – both off-line and on-line – will fail. Do you want to have a better chance of beating the odds? Create a strategy and follow it, pure and simple.
Success starts with a solid strategy. That is your roadmap, your future picture.
A good strategy will help you decide what niche(s) you want to be in. A good strategy will help you design the business systems and processes that any business needs to survive and thrive.
There are three main stages to setting up any business:
Starting up
Becoming established
Expanding
Each stage needs a different approach, and so it is important that you have a guiding strategy to help your business plan for each stage. Many businesses fail because they move onto the next stage too early, and consequently, most of the actions they take are likely to contribute to business failure.
Alternatively, they fail to move on to the next stage, preferring to remain in their existing comfort zone for too long. You should be updating your business strategy regularly throughout each stage to compensate for any issues that may threaten the rate of development and success in your business.
Internet Business Strategy
The components of a successful on-line strategy should include (at a minimum):
On-line Product Blend: What is your product lineup? What should it be? What are you getting from your on-line offerings? What could you get in terms of membership, revenue, or influence?
Metrics: Given your product portfolio, what is your current on-line service performance? What does it need to be? How well are you currently meeting your goals and objectives online?
Customer Analysis: Given your goals and objectives, who should your customers be, and what are their wants and needs?
Business Potential and Competition Assessment: What unique capabilities / assets can you leverage for on-line success? What threats, ideas, or partnership opportunities do competitor initiatives represent?
Internet Trends Review: What on-line trends offer the greatest opportunities to better serve your customers? Are there any potential disruptive (game changing) products, tactics or competitors? If so, do you have a plan to deal with them? How can you change the game?
Strategic Prioritization: What new, innovative initiatives do the inputs above raise for you? Which are most likely to offer high impact at reasonable investment levels? What is the most efficient development phasing for them?
Connections and Partners: Who are your “natural” allies? Who sells complementary products and services? How can you make and leverage your potential partnerships?
A good strategy will also help you decide what products to buy; what programs to join; what Joint Ventures to be a part of; what Affiliate Programs to participate in, and the kind of Outsourcing arrangements you need. In short, a good strategy will vastly increase your chances of success.
"Learning is not compulsory... neither is survival." - W. Edwards Deming (1900 - 1993) US Business Advisor & Author
The vast majority of people doing business on-line are not thinking strategically. They are jumping from one interesting “opportunity” to the next. They buy the ‘hot’ product of the day, the product that promises ‘instant riches’, the product that says you can sit back and ‘make money in your sleep’. Perhaps most fascinating of all is that they rarely even use what they have bought. They buy, put it aside, and move on to purchasing the next product, and the next, and the next.
These people are easy targets. Savvy entrepreneurs know that all they have to do is put a good website up, get a group of respected ‘gurus’ to help promote their product, write a good sales letter, and sit back and watch their sales numbers climb. They know that most people are looking for the quick hit, the foolproof money-making method that will put them on easy street.
The funny thing is; many of the folks who are selling these products are not inherently dishonest. They don’t get up in the morning thinking of ways to scam people out of their hard earned money – but they will get it anyway.
This will happen because most of their customers lack an overarching strategy. They think that having a product (even if you and 500 others have the same product), and a website equals having a business. They do what they think will work, or what worked for someone else.
Here is a hard fact: the vast majority of businesses – both off-line and on-line – will fail. Do you want to have a better chance of beating the odds? Create a strategy and follow it, pure and simple.
Success starts with a solid strategy. That is your roadmap, your future picture.
A good strategy will help you decide what niche(s) you want to be in. A good strategy will help you design the business systems and processes that any business needs to survive and thrive.
There are three main stages to setting up any business:
Starting up
Becoming established
Expanding
Each stage needs a different approach, and so it is important that you have a guiding strategy to help your business plan for each stage. Many businesses fail because they move onto the next stage too early, and consequently, most of the actions they take are likely to contribute to business failure.
Alternatively, they fail to move on to the next stage, preferring to remain in their existing comfort zone for too long. You should be updating your business strategy regularly throughout each stage to compensate for any issues that may threaten the rate of development and success in your business.
Internet Business Strategy
The components of a successful on-line strategy should include (at a minimum):
On-line Product Blend: What is your product lineup? What should it be? What are you getting from your on-line offerings? What could you get in terms of membership, revenue, or influence?
Metrics: Given your product portfolio, what is your current on-line service performance? What does it need to be? How well are you currently meeting your goals and objectives online?
Customer Analysis: Given your goals and objectives, who should your customers be, and what are their wants and needs?
Business Potential and Competition Assessment: What unique capabilities / assets can you leverage for on-line success? What threats, ideas, or partnership opportunities do competitor initiatives represent?
Internet Trends Review: What on-line trends offer the greatest opportunities to better serve your customers? Are there any potential disruptive (game changing) products, tactics or competitors? If so, do you have a plan to deal with them? How can you change the game?
Strategic Prioritization: What new, innovative initiatives do the inputs above raise for you? Which are most likely to offer high impact at reasonable investment levels? What is the most efficient development phasing for them?
Connections and Partners: Who are your “natural” allies? Who sells complementary products and services? How can you make and leverage your potential partnerships?
A good strategy will also help you decide what products to buy; what programs to join; what Joint Ventures to be a part of; what Affiliate Programs to participate in, and the kind of Outsourcing arrangements you need. In short, a good strategy will vastly increase your chances of success.
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