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Wednesday, April 07, 2010

Why focus ?


Confucius says: “Man who chases two rabbits catches neither!”


“I’d rather be strong somewhere than weak everywhere”.


When managers know they have only one battle to fight it concentrates their minds wonderfully.


Companies that broaden their line, for whatever reason, are vulnerable to narrowly focused competition that takes advantage of division.


Nobody loses business just because they have a broad focus. To lose business you have to run up against a competitor with a narrow focus.


What’s needed for success is focus, which sometimes can be achieved with a full line of products, but with sacrifices' made in other areas. Distribution could be one such area. Dell Computer deselected retail distribution and direct sales force with success.


Some managers equate size with power. Is a large company more powerful than a small one? Not necessarily. A highly focused company is more powerful than a less focused company.


What provide an organization with its power is its degree of focus and its share of market. Size is only important if it contributes to an increase in market share.


Power gives a company the ability to “control” an industry, taking it in a direction that will only increase the company’s power and domination.


Wouldn’t it be easier to increase the share of a business you know than to get a share of a business you don’t know?


A focus is not forever.

At any point in time, a company has 3 kinds of products. (1) yesterdays products, which are candidates for disposal; (2) today’s products, which are producing the bulk of the company’s profits; and (3) tomorrow’s products, which are the company’s future.


Nothing stays still long enough for a company to be perfectly focused.


Sooner or later even the most powerful focus becomes obsolete. That’s when a company must refocus itself.


Focus, the future of your company depends on it.



Abstracts from: “Focus, The future of your company depends on it”, by Al Ries


If you are a BtB-unit manager and you are interested in some practical DIY-tools on strategic focus maybe you will enjouy visiting my blog: Strategy On-line


Regards

Peter

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