Strategic Planning in the Small Business

Unit 3

Content

Process

allows the

firm to concentrate on

the

nuances of that

particular situation

without having

to meet a variety

of

demands simultaneously.

This posture

allows the business

to deve­

lop a number

of potential competitive

advantages

over larger firms.

Small

business

are often characterized

by their

general flexibility and adaptability.

These

factors

may enable the small

firm to meet

the special needs of their

target market in

a more timely

and responsive manner

than

can the

large business. Thus,

meaningful

opportunities that are

normally overlooked

or bypassed

by a large firm can

be exploi­

ted by the small

business.

This posture

is not without its

risks. The

firm

has placed all its eggs in

one basket.

If the

product or market loses

its vitality,

the

business is placed in a

tenuous posi­

tion.

9 The niche

posture

A specialized version

of the single

product/market

posture is the niche

pos­

ture.

Through careful

environmental analysis,

an important

gap or niche in

a market is

identified.

If a business has the

capacity

and competency

to enter these areas,

it

can capitalize on these previously

unfulfil­

led opportunities.

Recognizing and

gearing the business to­

ward a promising
niche .my lead to subs­

tantial

short-run profits and

possibly may

be viable over many
years. In some cases,

competitors may not
realize that the niche

exists. Other may
see the gap but still not

have any interest
in moving into it
due to

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