Why should a small company do strategic planning?
nMany small high tech companies are managed instinctively or as a crap shoot.
nImplicit strategies which worked in early high growth periods will not necessarily work when markets have matured and/or become turbulent.
nFollowing these implicit strategies suggest that small companies are not viable on-going entities.
With strategic planning, small companies can grow and succeed in today’s high tech environment.
nThe key is adopting low risk/high probability strategies and tactics that address weaknesses and strengths of small companies.
How can small companies succeed and grow?
Strategic Imperatives:
nMust Have Laser Focus
nFocus limited resources to achieve competitive scale in few markets.
nTune organization to specific market place, set of customers, competitors
nMust Reduce Risk
nDiversification
nControl of market place
•Strong customer ties
•Strong competitive (leadership) position