Strategy is the plan for implementing your mission and values. A mission communicates what will be achieved and values guide the why behind a set of decisions. Strategy is specifically how resources should be allocated to accomplish the mission. More specifically, strategy is ‘The combination of all the decisions taken and actions performed by the business to accomplish business goals and to secure a competitive position in the market.’
Three main categories must be implemented in concert and occasionally revisited to enhance success:
- Corporate / Business Strategy
- Organization Strategy
- Functional Strategy
To develop these strategies you must first determine key objectives, resources and metrics derived by internal and external analysis. An External Analysis entails thoroughly researching the market conditions, competitors and potential customers. In doing so you can determine opportunities and threats. What are your competitor’s strengths and weaknesses? Is their fleet composition and size meeting market demand? What training resources do they use and are they able to execute successfully? Sometimes this information can be difficult to obtain but detailed and thorough research is imperative to developing a clear and concise strategic plan.
Once you understand the market you must take inventory of assets at your disposal through an Internal Analysis. What are your own strengths and weaknesses? What resources and capabilities can you leverage? Do you have the physical and human capital to implement the strategy you develop? Beware of cognitive bias as we can and easily delude ourselves with unwarranted positivity. But hope and reality are very different things. Avoid the temptation to be overly optimistic by supporting your analysis with facts. There are many free resources and templates online to complete a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis but don’t make it complicated. A lot of time can be wasted collecting useless information. Go for substance – not quantity. For example, here is a very simple SWOT analysis that clearly highlights a market position. Support your statements with details to further quantify, as appropriate.
Strengths
- Location – Conveniently located near metropolitan center.
- Nimble – Able to quickly adapt to market needs.
- Strong Management – Experienced professionals in flight ops and maintenance.
Weaknesses
- Lack of Capital – Self funded and business loans.
- Lack of Reputation – Have not yet established ourselves as a professional training provider.
Opportunities
- Area Growth – Local population increasing 6% annually.
- Partnership – Collaborate with local STEM school.
Threats
- Competition – Other schools able to duplicate our strategy.
- Public Image – Local residents complaining to city about noise and pushing for restrictions.
After completing your analysis, remember the market is not stagnant. Periodically review your assessments and update as necessary. Spend a little time every few months to identify what conditions have changed. This will help your business stay on top of latest developments and proactive instead of reactive.
Armed with a strong understanding of the market and your current position, you can begin developing strategies. What action must you take to seize opportunities? How can you build a moat around your business to protect from competition? Continue reading our Strategy Articles for detailed description and implementation tips.
Additional Reading: Harvard Business Review Tools: SWOT Analysis
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