The development strategy of the company determines not only the course along which it will move and develop, but also all the methods of this promotion. Therefore, it is logical to start with a thorough study of the business strategy, and then deal with marketing tools.
What should be the company’s development strategy?
Much has been written about strategy. And each of the opinions can be considered quite subjective, because these books are written by authors who have 1-2, maximum 10 own companies behind them. And, as a rule, all these companies are connected by a common direction.
Nevertheless, we recommend reading – after all, the more opinions you get to know, the more objectively you will argue in the end.
The main mistakes of strategic planning:
Often, being carried away by an idea, we dismiss the important questions of our mind. This is called “Burn with an idea”, which is not always good.
Re-evaluation of the idea. Often an idea so overshadows our mind that we think we know something that others do not know. The strategist often overestimates his power over the future, mistakenly believing that if everything is well formed in his head, everything is logical and thought out, then it will be so in reality. And we continue to build our castle in the air, which the harsh reality will sweep away in no time.
Think that the idea is the reality. It is important to remember that our idea is still just a theory, a probability, and not to let it drown out the arguments of reason based on reality.
Secrets of strategic planning
A few basic principles of strategy that will help you make the most effective decisions for your business and other areas of life.
What a strategist needs to know:
The most effective strategies are indirect. So to speak, "multi-moves", when the enemy thinks that you are retreating, while you are pulling forces to the most vulnerable place in his defense, and so on.
2. The goal of a business strategist when working with competitors is not to destroy them, but to force them into negotiations on favorable terms.
3. If you follow the author of the treatise "The Art of War" by Sun Tzu, then when developing a strategy, you need to take into account 5 main factors: Moral basis (your warriors must be sure that they are doing the right thing), Weather and seasonality (seasonality is also important in business), Geographical conditions (the battle must be fought on the most favorable terrain for you), Leadership (the leader must be wise, honest, friendly, courageous and strict), Organization and discipline (the distribution of powers and responsibilities in the company must be clear and recognized by all participants).
Everything is possible - "There are no impregnable fortresses, there are only weak attackers."
5 principles for building an effective strategy:
Thought - every action must be meaningful and must lead to the desired consequences.
Freedom - the freedom of thought must face the coercion of reality, this is where creativity, cunning and tricks are born.
Leverage - the strategy should lead to significant results at the cost of little mental effort.
Information - the more information you have about the enemy and the situation in general, the more chances you have to win. "Information rules the world".
Harmony - sanity and harmony (with yourself, your beliefs, the world around you, command, coordination of actions) will help you win.
Machiavelli's strategy, 4 principles of success:
1. Factual truth - it is necessary to start from reality, and not from virtuous motives. Often the reality is not as friendly as they write in children's fairy tales.
2. Strength - the whole world is struggle, battle and victory. Virtue is devoid of power, as Machiavelli believed. And Kant added it - when virtue gains strength, it ceases to be virtue.
3. Popularity - according to Machiavelli, a leader must be popular and in public be compassionate, true to his word, merciful, sincere and pious, BUT internally be ready to show opposite qualities if circumstances so require.
4. Manipulation - the strategist must skillfully manipulate the power of other people.
Principles of an effective strategy from Bruno Jarosson:
- INFORMATION - All decisions must be made on the basis of clear and verified information.
- FREEDOM OF MANEUVER - the more you have, the higher the chances of winning. Don't let yourself be driven into a corner.
- CONCENTRATION OF EFFORT - it is important to be able to concentrate maximum forces in the right place at the right time.
- DETERMINATION - and this responsibility lies primarily with the strategist himself.
The principle of casuistry - in negotiations it is important to be able in the eyes of the opponent to minimize the benefits you receive from his concession, and not let him refuse it.
Position with promises - one must strive to be in the position of the promiser, and not the one to whom the promise was made. This is the most winning strategy.
A strategic trick is to deliberately deprive yourself of room for maneuver and inform your opponent about it. A good example - "Two cars are moving towards, whoever turns first - he lost. If both do not turn, they will die. A winning strategy - one of the drivers blindfolds himself and tells the other that even if he wanted to turn, he simply could not. The second , wanting to stay alive and realizing that the first one cannot turn off in any way, agrees to defeat.
Base strategy development on Game Theory.
How to work with competitors?
1. You don't have to be too kind. If a competitor refuses to cooperate, there is no need to continue to impose it on him. Refusal is punishable by refusal.
2. No need to be vindictive. Punishing people for not cooperating twice is overkill.
3. It is necessary to start negotiations with cooperation.
4. In negotiations, use cognitive distortions and syllogisms to lead your opponent to the statements and conclusions you need:
All roses are flowers.
Some flowers fade quickly.
Consequently, some roses fade quickly.
On the basis of reduction to the general, it is possible to distort the particular. In the above example, roses have led to a common property of flowers, although among the roses there are no quickly fading specimens.
Cognitive biases (perceptual errors) that can be used in strategies and advertising:
Interests influence perception. The first thing a smoker will notice on the street is a tobacco kiosk.
Freshness effect. We remember the most recent information best. Try to save the sweetest for last.
The effect of simple presentation. If we have previously encountered this object under good circumstances, we will treat it more favorably than other equals.
Dominance effect. From the list of arguments presented to you, you will best remember the first, second and last. Try to formulate your offers to partners or competitors according to this scheme.
Forgetting the base frequency. When estimating the probability, we usually forget to correlate it with the actual frequency. For example, earthquakes are more frequent in Japan than in Ukraine, but the real danger of becoming a victim of an earthquake during a trip to Japan is negligible.
The effect of obscurity. We tend to avoid options about which we have insufficient information. The choice between the place of rest where our friends went, and the jungle, which is not even on the map, is obvious.
Prejudice. Woman driving? Oh no!
Merit assessment errors. I did it not by chance, but because I'm so smart.
Self-justification mistakes. If I succeeded - it's my merit, if it didn't work out - it's not my fault.
Errors of the status quo. The new is perceived with hostility, as capable of bringing more risks than benefits.
Error immunity to error. Inability to notice one's own mistakes.
Mistakes of egocentrism. The habit of thinking about yourself and your strategies better than they really are.
Flashback errors. The typical phrase is "I knew it."
Halo effect. Selective perception of information based on the first impression and the desire to confirm it.
Casino effect. Tendency to overestimate the role of chance. Wow, we were born on July 16, how much we have in common!
Dunning-Kruger effect. The least competent specialists tend to overestimate their abilities, while the more competent, on the contrary, underestimate them.
Illusion of knowledge. The desire to believe fairy tales instead of getting to the bottom of accurate verified information.
The effect of extinguishing a fire with gasoline. Reinforcement of original faith in the face of conflicting evidence.
Reluctance to part with property.