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Strategy - A Vision for the Future, A Strategy for Getting There


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Strategy: A way of defining paths of what-if-scenario’s to defeat your competitors by using a combination of a rational determined Unique Selling Point (“USP”) and a Healthy Dose of Luck. Your end-goal is your Vision. Without a clear planning & process overview (Strategy) to aim for your Vision, your actions & execution will just be like hail relying on Luck: going everywhere and nowhere, hoping to hit a target.

This presentation discusses several Strategy Analysis Methods to define your current position and your way forward.

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Author: Eva Hukshorn, EFactor

Published in: Business, Economy & Finance
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Strategy - A Vision for the Future, A Strategy for Getting There

  1. 1. Strategy  A  vision  for  the  future,  a  strategy  for  ge2ng  there  Author:  Eva  Hukshorn   1  
  2. 2. EFactor:  An  introduc9on  •  Founders  Adrie  Reinders,  Marion  Freijsen,  Roeland  Reinders  •  Started  OHM  Inc.  in  2004:  Business  Development  for  Fortune  2000  •  Serving  (mainly)  technology  companies  around  the  globe  •  Goal:  assist  emerging  technology  companies  in  selling  their  product  to  Corporates  •  In  2007  they  wrote  a  book:  The  N-­‐Factor   -  How  efficient  networking  can  change  the  dynamics  of  your  business   -  Huge  success:  no  theory,  but  hands-­‐on  9ps  &  tricks  •  Result:  EFactor  -­‐  a  social  plaUorm  for  entrepreneurs   -  Strategic  business  networking  impacts  the  future  of  your  business   -  Goal:  share  knowledge,  increase  sales,  decrease  costs,  find  capital   -  Mission:  increase  success  of  entrepreneurs  to  start-­‐up  or  accelerate  their  organiza9on   -  In  2012  the  new  book  was  launched:  The  E-­‐Factor:  Entrepreneurship  in  the  Social  Media  Age     EFACTOR,          THE  WORLD’S  LARGEST  ONLINE  NETWORK  FOR  ENTREPRENEURS  ON  EARTH       An  online  community  offering  you  a  network,  knowledge,  events,  and  every  business  resources  you  need  to   succeed   2  
  3. 3. Eva  Hukshorn:  An  introduc9on  •  Work  Experience   -  Current:    Partner  EFactor        Board  of  Advisory:  TreFoil  Energy  /  CleanDrinks  /          Global  Thinkers  /  ShowLinq            Coach  Startup:  Bootcamp  Amsterdam  /  New  Venture  McKinsey   -  2009  –  2010:  Dutch  Bou9que  –  Marktlink  Mergers  &  Acquisi9ons,  Amsterdam   -  2007  –  2009:    Royal  Bank  of  Scotland  –  Corporate  Finance,  Amsterdam   -  2004  –  2009:    ABN  AMRO  –  Corporate  Finance  New  York,  Amsterdam   -  2003  –  2004:    Accenture  –  Consul9ng  London,  Amsterdam  •  EducaHon   -  1997  –  2002:  MSc  Economics,  Finance  –  University  of  Groningen,  the  Netherlands   -  2003:      Interna9onal  &  Asian  Studies  –  Na9onal  Sun  Yat-­‐Sen  University,  Taiwan   -  2009  –  2011:    Cer9fied  Management  Accoun9ng  (CMA)  –  Ins9tute  of  Management  Accountants            (IMA),  United  States   -  2009  –  2001:    Colloquium  General  &  Modern  Art  –  Academy  for  History  of  Art,  the  Netherlands   -  2012:    Interna9onal  Financial  Report  Standards  (DipIFRS)  –  Associa9on  of  Chartered  Cer9fied          Accountants  (ACCA),  United  States   3      
  4. 4. FUNDING  TUESDAY,  EVERY  TUESDAY  So  what  can  you  expect  from  us  each  Funding  Tuesday?  1.  Webinars  on  EFactor  on  Finance  &  Funding  related  topics  in  the  EVENT   Sec9on  2.  Blogs  &  interviews  with  informal  investors  and  funded  entrepreneurs   with  9ps  &  tricks  in  the  BLOGS  sec9on  under  NOW  3.  Finance  &  Funding  related  ar9cles  on  NOW  feed  4.  In  the  Finance  &  Funding  GROUP  on  our  website  you  will  find  Q&As  of  the  webinars  under     NETWORK  5.  In  the  KNOWLEDGE  base  you  will  find  more  and  more  presenta9ons  on  Finance  &  Funding   related  topics,  including  the  webinar  presenta9ons  6.  And  if  you  become  a  VIP  MEMBER  you  will  personally  be  supported  on  your  Finance  &  Funding   related  ques9ons   4    
  5. 5. Webinar  Program  Overview  2012  June  19:    Business  Plan  Wri9ng  -­‐  A  Roadmap  to  Success  July  3:      Pitching  &  Presenta9on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  GeWng  There  July  31:    Budge9ng  &  Forecas9ng  -­‐  Predic9ng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua9on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna9ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec9ons  Dec.  4:      Marke9ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs   5    
  6. 6. Some  basic  ingredients  to  start  a  successful  company     3  key  elements  of  life:  Ideas,  People  and  Money   6  
  7. 7. The  importance  of  defining  your  strategy  &  vision  •  Accomplish  your  dream:   •  Intellect   •  Luck  •  Communicate  your  dream:   •  Understanding   •  Mo9va9on   •  Deal-­‐making  •  Define  &  quanHfy:   •  5  year  goal  =  vision   •  3-­‐5  milestones   •  18  month-­‐by-­‐month  detailed  to-­‐do   7  
  8. 8. A  vision  for  the  future  •  IdenHfy  &  understand:   •  Developments  of  your  organiza9on   •  Developments  of  your  environment   •  Industry  developments   •  Interac9on  on  these  developments  •  Your  vision  includes:   1.  Compe99ve  edge   2.  Environment  &  industry   3.  Customers  &  partners   4.  Targets   5.  Core  values   6.  Image   7.  Milestones   8  
  9. 9. A  strategy  for  ge2ng  there     Vision   Corporate   Corporate  strategy  &  milestones  STRATEGY  =  HOW  •  Measurable  &  reachable   Sub-­‐Vision   Sub-­‐Vision   Sub-­‐Vision  •  Forecasts  vs.  actual  steps   Marke9ng   Financials   Product  •  Sub-­‐visions  •  Milestones  &  sub-­‐milestones   Sub  strategy  &   Sub  strategy  &   Sub  strategy  &  •  Timelines   milestones   milestones   milestones   Vision  is  your  DREAM,  strategy  is  HOW  to  dream   9  
  10. 10. A  summary  of  your  vision  and  strategy:  Your  milestone  overview   2012   2013   2014   2015   2016   M M V Business Product Beta test Going to Get Product Going to Promotion Plan develop market US work development market campaign ment Product space Prod. B Prod. A develop Alpha Break- Expand in EU + ment Customers Promotion Beta test even India campaign Employees 3 5 8 10 12 15 20 25 Revenue / margin 200k / 10% 1mio / 17.3% 4mio / 21% 12mio / 28% Capital need: USD 150k 2nd round: USD 1mio 3rd round: USD 3mio 10  
  11. 11. SWOT  analysis:  Know  thyself   INTERNAL:  Strength  &  Weaknesses   EXTERNAL:  OpportuniHes  &  Threats   •  Resources:  financial,  intellectual   •  Poli9cal   •  Customer  service   •  Legal   •  Efficiency   •  Economic  condi9on  market   •  Compe99ve  advantages   •  Expecta9ons  of  stake  &  shareholders   •  Infrastructure   •  Technology   •  Quality  &  price   •  Public  expecta9ons   •  Delivery  9me   •  Compe99ve  environment   •  Costs   •  Barriers  to  entry   •  Capacity   •  Commodity  prices   •  Personnel  /  management   •  Amount  of  customers   •  Organiza9onal  structure   •  Structure  of  suppliers   11  
  12. 12. Value  Chain  Analysis   AdministraHve:  Accoun9ng,  legal,  finance,  tax   Human  Resources:  Recruitment,  training,  personnel,  planning   Technology:  Product  development,  process  design,  engineering,  R&D   Value   Added     plus     Procurement:  Funding,  contrac9ng,  supplier  management,  working  capital   Cost   ReducHon   INBOUND   OPERATIONS   OUTBOUND   MARKETING  &   SERVICE  &   =     LOGISTICS   LOGISTICS   SALES   MAINTANCE   Increased   •  Supply   •  Manufacture   •  Finished   •  Product   •  Maintenance   Profit   schedules   •  Assemblage   goods   •  Price   •  Warranty   Margin   •  Controls   •  Packaging   •  Order   •  Promo9on   •  Educa9on  &   •  Receiving  &   •  Produc9on   handling   •  Place   training   storage   control   •  Delivery     •  Upgrades   •  Invoicing    Source:  Wikipedia   12  
  13. 13. Generic  Compe99ve  Strategy  Analysis   COMPETITIVE  ADVANTAGE   TARGET  GROUP   LOW  COST   COMPETITIVE  EDGE   BROAD   COST  LEADERSHIP   DIFFERENTIATION   STUCK IN THE MIDDLE FOCUS  –                                                                  FOCUS  –   NARROW   LOW  COST   DIFFERENTIATION   13  
  14. 14. Five  Forces  shaping  industry  compe99on   RIVALRY EXISTING COMPETITORS 14  
  15. 15. Five  Forces  Analysis:  New  entrants   Threat  new  entrants  =  low:   •  Barriers  to  entry  high  &  barriers  to  exit  low   •  Time  needed  to  setup   •  Capital  needed  to  setup   •  Strong  brand  name  exis9ng  compe9tors   RIVALRY •  Protec9on  of  technologies   EXISTING COMPETITORS •  Economies  of  scale   •  High  switching  &  sunk  costs   •  Access  to  distribu9on  is  difficult   •  Brand  loyal  customers   •  High  absolute  cost  and  low  margins   •  Specialist  knowledge  needed   15  
  16. 16. Five  Forces  Analysis:  Customers   Bargaining  power  customers  =  low:   •  Many  customers,  few  suppliers   •  Compe99on  between  customers  is  high   •  Size  of  each  order  is  small   •  Differences  between  compe9tors   RIVALRY •  Price  sensi9vity  low   EXISTING COMPETITORS •  Ability  to  subs9tute  is  low   •  Cost  of  changing  is  high   •  Dependence  on  exis9ng  distribu9on  channels     •  Informa9on  availability  is  low   •  Availability  of  customers  to  backward  integrate   is  low   16  
  17. 17. Five  Forces  Analysis:  Subs9tute  products   Threat  subsHtute  products  =  low   •  Price  subs9tutes  are  higher   •  Price  /  quality  performance  of  subs9tute  poor   •  Switching  costs  involved   •  Strong  differen9a9on  between  compe9tors   RIVALRY •  Few  subs9tutes  available   EXISTING COMPETITORS •  Products  are  easy  to  understand   17  
  18. 18. Five  Forces  Analysis:  Suppliers   Bargaining  power  suppliers  =  low:   •  Many  suppliers   •  Low  switching  costs   •  Low  differen9a9on  of  inputs   •  Presence  of  subs9tute  products   RIVALRY •  Low  reliance  on  suppliers’  distribu9on  channel   EXISTING COMPETITORS •  Hard  to  ver9cally  integrate  and  cut  out  buyer   •  Employees  are  flexible   18  
  19. 19. Five  Forces  Analysis:  Industry  rivalry   Rivalry  exisHng  compeHtors  =  low:   •  Your  unique   •  Diversity  among  compe9tors   •  You  deliver  beqer  quality   •  You  deliver  beqer  price   RIVALRY •  High  switching  costs   EXISTING COMPETITORS •  Loyal  customers   •  Low  barriers  to  exit   •  No  access  capacity  in  the  market   •  Low  adver9sing  &  innova9on  costs   •  Low  compe99on  between  on-­‐  and  offline   compe9tors   19  
  20. 20. Combine  Porter’s  analysis   GENERIC  COMPETITIVE  STRATEGIES   FIVE  FORCES   Cost  Leadership   DifferenHaHon   Focus   New  Entrants   Ability  to  cut  price  in  retalia9on   Customer  loyalty  can  discourage   Focusing  develops  core   deters  poten9al  entrants   poten9al  entrants   competencies  that  can  act  as  an   entry  barrier   Bargaining  Power   Ability  to  offer  lower  price  to   Large  customers  have  less   Large  customers  have  less   Customers   powerful  customers   power  to  nego9ate  because  of   power  to  nego9ate  because  of   few  close  alterna9ves   few  alterna9ves   SubsHtute  Products   Beqer  insulated  from  powerful   Beqer  able  to  pass  on  supplier   Suppliers  have  power  because  of   suppliers   price  increases  to  customers   low  volumes,  but  a   differen9a9on-­‐focused  firm  is   beqer  able  to  pass  on  supplier   price  increases   Bargaining  Power   Can  use  low  price  to  defend   Customer’s  become  aqached  to   Specialized  products  and  core   Suppliers   against  subs9tutes   differen9a9ng  aqributes,   competency  protect  against   reducing  threat  of  subs9tutes   subs9tutes   Rivalry  ExisHng   Beqer  able  to  compete  on  price   Brand  loyalty  to  keep  customers   Rivals  cannot  meet   CompeHtors   from  rivals   differen9a9on-­‐focused   customer  needs   20  Source:  h7p://  
  21. 21. Boston  Consul9ng  Group  –  BCG  Matrix   25%   HIGH   Priori9ze   Divest   Market    Growth   Invest   10%   Delete   LOW   0%   10x   1x   0x                    HIGH   LOW   RelaHve  Market    Share   21  
  22. 22. Conclusion  &  final  remarks  Vision  is  your  Dream,  strategy  is  HOW  to  dream   Next  webinar  =  1.  SWOT  Analysis   July  31:   BudgeHng  &   •  Analyzes  pros  &  cons  of  your  internal  and  external  environment   ForecasHng  –  2.  Value  Chain  Analysis   PredicHng  the   •  Maps  acCviCes  within  your  organizaCon  and  value  creaCon  per  acCvity   Outcome  3.  Generic  Compe99ve  Strategy  Analysis   •  Analyzes  your  posiCon  by  idenCfying  compeCCve  advantage  versus  target  group  4.  Five  Forces  Analysis   •  Analyzes  influence  of  relevant  groups  on  your  compeCCve  posiCon  5.  BCG  Matrix   •  Analyzes  the  state  of  your  product  porHolio  or  company  at  a  whole   Experience,  Common  Sense  and  Awareness  of  your  Current  PosiHon  are   the  best  tools  to  determine  a  solid  Strategy  to  realize  your  Dream   22  
  23. 23. Webinar  Program  Overview  2012  June  19:    Business  Plan  Wri9ng  -­‐  A  Roadmap  to  Success  July  3:      Pitching  &  Presenta9on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  Ge2ng  There  July  31:    BudgeHng  &  ForecasHng  -­‐  PredicHng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua9on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna9ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec9ons  Dec.  4:      Marke9ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs   23    
  24. 24. BECOME  A  VIP  MEMBER  WITHIN  1  WEEK  AND  GET  YOUR  PLAN  CHECKED!  1.  Increased  Business  Exposure  and  Social  Media  IntegraHon  2.  Jay  Abrahams  Business  Maximizer  Manual  3.  Access  To  Exclusive  Expert  Events  Twice  A  Month  4.  "Special  SoluHon"  AcHon-­‐Based  Reports,  at  least  twice  a  month    5.  VIP  Only  Discounts  6.  VIP  Weekly  Newslejer  7.  VIP  Inner  Circle  8.  eProducts  from  the  worlds  largest  library  9.  IN  ADDITION:  If  you  ajended  this  workshop  AND  become  a  VIP  Member  of  EFactor  within   ONE  WEEK,  you  can  send  me  you  quesHons  on  working  capital  and  I  will  provide  you  with   assistance:         HTTP://WWW.EFACTOR.COM/VIP     24  
  25. 25. Thank  you!    This  document  was  prepared  by  Eva  Hukshorn.  Several  people  and  organizaHons  have  inspired  her  to  write  this  presentaHon,  amongst  which  are,  but  not  limited  to  the  Founders  of  EFactor,   ABN  AMRO/RBS,  University  of  Groningen,  InsHtute  for  Management  Accountants