Entrepreneurship Management:- The moment in which we do the actions is as important as the action itself. Thus, time becomes a key factor for the business strategy that must be analyzed and understood for maximum efficiency in all kinds of strategies. Of this I am going to speak in the following lines.
Time to Make Right Decisions in Business
The analysis time is a strategic analysis tool that included within my ebook ” The final technical 25.5 business strategy ” and has as its objective to control and understand time as one of the critical variables of the strategy.
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Over time, i.e the time we chose to implement the actions, it is as important as treasury shares . An example of the repercussion of this concept is found in the story of Larry Page, the creator of Google. Do you think the idea of a search engine would have triumphed if it had been implemented five years earlier? The answer, without any doubt, is that it would have failed, since the network, and above all society, was not yet ready for this advance. Cases like this, and even more significant, will find them easily looking around you.
This tool is designed for companies that are intended to diversify, in either of the two ways we’ll see, pondering the right time to increase the odds of success. It is about making real – time strategy in order to be timely, but not opportunistic . Being timely means reaching the market at the ideal time in which to exploit a competitive advantage and get new ones to last as long as possible. Being opportunistic is something temporary, every day we see opportunists arrive and disappear. This can not be our goal. Let’s see a summary of its mode of application:
- Product Moment
This first phase is to analyze the life cycle of the products you already have in the pipeline , not the product launch, because this does not have life. If it is your first product go to step 2.
Any product at birth already has written an expiration date. For this reason and others, we must understand at what moment of concrete cycle we are in order to perform one or another action.
The life cycle of a product follows the graph famous S – curve, and every moment of the curve can be explained as follows: Introduction, growth, maturity and decline .
In addition, the graph of CLICO life of a product becomes more relevant if we analyze buyers in each of its stages, ie, if we analyze the curve of adoption of innovation Everett Rogers . These buyers associated with the life cycle of a product are: Innovators, Early Adopters, Early Majority, Late Majority, Laggards .
- Economic moment
In this phase we will discuss later, the economic times of a global economy and is what we have . The economic performance of countries is cyclical , there are always times of recession , which are followed by moments of growth . Always. What is harder to determine is its duration .
There are products that work best in different cycles. We must then reflect on the economic moment are the countries most related to our new product.
Think if these countries are in a recession or growth, but also must compare its economic cycle with the country of origin to find cycles inversely related , ie that while one is growing, another is decreased. This is essential for a good diversification strategy . Analyze the economic cycle of the markets in which the products in your portfolio are located.
- Social moment
People also change continuously, but perhaps not as fast as in your vision. If your new product is innovative, you must pay attention to the level of maturity that society shows and acceptance probabilities can have.
The social time is key when launching a new product to market. Analyzes the values of people and other cultural issues that may pose a barrier on the purchase of your product.
Remember that the best product is one for which, today, your customers would be willing to pay for it . There is a phrase that I have always hated to be told by my clients: “You have a product that will be a revolution in a few years” (surely you already know that payrolls are paid month by month.
- Time to market
Another of the moments that you must analyze are the times necessary to take your new product to the market, or to go to that new market. You will see how these times will depend in part on you, but also on the market. You must know these concepts:
Time-out. It is the time that elapses from the detection of the opportunity until we decide to start it.
Time to Market. It refers to the time that happens from product design until it is available in the market, ready to be consumed.
Acceptance time. It is the time that elapses since the product is in the market until it reaches its maximum sales potential. We could consider that maximum sales potential when we reach more than 20% of the total segment.
- Define your strategy
After analyzing the different times in which we find ourselves , we are ready for diversification . Think there are only two basic forms of diversification: diversification in product or market.
Product diversification consists of expanding your portfolio of products with new creations, and diversification in the market, is to discover new markets for existing products, new markets that can be geographic, segment, niche, etc.
In this phase you will have to analyze the different moments seen of product or market to get the maximum benefit.
As you have seen, choosing the right moment to execute the actions of the strategy is fundamental for the success of the same.
Remember if you want to know in depth this technique or other company strategy have two options, the ebook ” The final 25.5 business strategy techniques ” or a session business strategy consulting .