WHY FOCUSING IS THE MOST IMPORTANT GROWING STRATEGY?

What Is SME? Yes, SME means small- and medium-enterprise but we have our own SME definition. “Business with limited everything”

These companies have limited time, cash, quality team, capacity, corporateness, and many other opportunities. Can this business compete with or even pass a large competitor with almost all opportunities?

Yes, it can. When a business narrows the focus and specializes in a certain topic, that business can adopt a niche market and lead the competition. The most important misconception in the business world is lack of focus, considering size over profit, and versatility over specialty.

Businesses must ask this question: which market segment can I be the global best or “a field expert”?

It is easy to say but hard to do. You need the customer perception to be recognized as an expert even though you created the highest quality product on earth. Businesses must achieve positive customer perceptions. What customers will first think about your product and service will be your positioning.

For example, you will visit a cardiologist if you have hearth problem and dermatologist if you have a skin problem. Everyone knows that a specialty doctor is better than the family healthcare provider. Right or wrong will not make any difference. Perception is a reality.

The most important mistake by companies is to expand product range during the growth process and try to offer more products to the largest customer group. Trying to meet the demand of all customers is one of the biggest mistakes. There is a guarantee for profit loss. Ideally, you need to narrow down product range on the market and focus on certain customer segments. Management must find what works for them and canalize all efforts to these things.

Confucius said if you chase two rabbits, you cannot catch any rabbits.

How can you grow if you will not make a product or service range more versatile? The short answer to this question is new locations. If a business has a product to be “the best” around the world, that business must focus on location expansion rather than product expansion. The target audience must be identified and values that will be successful in all locations should be presented.

Actually, main purpose of this article is to “talk about placing all your eggs in one basket”. Remember, success will come from where you focus.

Globalising by focusing on a narrow segment is the most effective strategy in business world. As VALURA, we are working to be the number one company valuation and analysis company around the world; what is your main focus?



Gökhan Acar / CEO
VALURA

 
 
 
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