Wednesday, November 7, 2012

Positioning II

...their biggest weakness is their "inadequate, outdated technology" (even though there is zero correlation between technology infrastructure and profitability).

Many companies run through the usual evaluation of their strengths, weaknesses, opportunities and threats (SWOT) based solely on the opinions of the employees attending the meeting.  They convince themselves that their biggest strength is their "great people" (even if they have performed below industry medians for years) and their biggest weakness is their "inadequate, outdated technology" (even though there is zero correlation between technology infrastructure and profitability).

Bottom line: a strength is only a strength if it provides value to a target customer.  If your customers are manufacturers who are really buying flawless logistics to support 100% up time  your technical expertise is not a strength--even if every single sales rep in your company holds a PhD in engineering.

ACTION POINT: Know and understand what strengths your customers want.

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