What strategies are you pursuing deliberately? Is your business model built for volume (scale) or niche (premium customers)?
You must be specific about your business focus to win in your chosen markets. The starting point is to answer key questions: what is your playing field? Who are your target customers? What products and services will you sell to them and what delivery channels will you use to reach them? And what is your geographical coverage?
If your target customer is the mass market, you must be configured to have scalability at the core. It means your infrastructure and technology setup, including all attendant systems must be able to handle volumes at the lowest cost possible because mass-market is usually price sensitive. In the mass market, your focus is small margins from volume transactions like the fast-moving consumer goods model. However, to compete on price, you must have a low-cost structure. Operational excellence must be at the core of your business model setup.
So, what is your business model? Who is your target market?
To be continued…
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