There are many elements of a good business strategy, but one of the most important is an intentional decision about where to play. Many companies don't clarify this issue up front and, as a result, struggle to execute their strategy.
Deciding where to play means determining which markets to serve, which customers to focus on, and what your margins need to be. This focus is essential; the best performing companies have an exceedingly clear picture of where they play. There is also a high correlation between a company's financial performance and its level of focus on the specific markets and customers it chooses to serve.
The operative word here is choose. These intentional decisions are critical because they put you in the best position to succeed. Strategy is not about being all things to all people. It is about making very intentional choices about the products, customers, and markets that will give you the best chance of long-term business success.
Mario O. Vicari is a director with Kreischer Miller and a specialist for the Center for Private Company Excellence. Contact him at Email.
How do you determine which opportunities are best to pursue for your business? Share in the comments.