Strategic Planning in the Small Business

Unit 2

HO 2-6 (continued)

higher

quality then

can be secured

from the

competition. Ac­

cordingly, consumers

come

to associate a

quality image

with

the business.

Service

often moves

hand-in-hand

with quality. The

busi­

ness

is concerned

with aiding the

consumer in

their dealings

with the

business and

its products.

This may occur

as service

prior

to the sale or as

repairs and

follow-up after

the sale.

Location

is a factor that

often dictates the

firm's success.

It

can

be an area of

considerable

competence when

recognized

and

exploited. Location

may affect

the firm's

visibility, likeliness

of attracting

individuals within

the target market,

and its

com­

petitive

edge over

businesses offering

similar

products or

services.

Fillinga special

niche is a particularly

important

competence

and one that

can be developed

after careful

analysis

of the

competitive

situation.

The business

may choose

to enter an

untapped

market,

provide unique

or different services

or prod­

ucts (and thus

limit direct competition),

or

attempt to develop

aspects of novelty

or originality

into existing

products.

Such

extentions

and variations

must be focused

on real needs

of some

segment

of the market.

Providing a

unique product

that no

one cares

about or

wishes to

purchase is,

of course,

counterproductive.

Flexibilityandadaptability

may

be particular strengths

a small

business can

focus on that

offer it a competitive

edge

over

larger,

often more

formalized and

rigid operations.

For ex­

ample, a small

business may

do work on

a custom basis

and

thereby

attract customers

from larger

firms who

refuse such

actions.

Strong

consumer orientation

is often

promoted by the

smaller

business.

Here smaller

firms,

perhaps because

of a less for­

malized,

bureaucratic

process, are

able to stay

in closer touch

with shifting

consumer needs

and demands

and respond

more

quickly to these

preferences.

Thus, consumers

are likely to

feel

that the

company personnel

know

them and are willing

to adapt

and modify

their methods

and operations

to accommodate

the

individuality

of their customers.

92 Part
One The Analvsis
Phase

234