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By Root 792 0

questionnaire includes a most intriguing question: “What business are we really in?” Participant responses to this question may help a company redefine its business by enlarging its scope (or sometimes by narrowing it). Many business leaders have used this question to find new market opportunities. Too often, the business we believe we are in has been too narrowly defined or has become narrowed over the passage of time. Consider a company that prints newspapers. What business are they in? The likely answer is “the newspaper business.” But what business are they really in? A possible answer is “the information business.” Such a newly defined business scope conjures up new possibilities.

The opportunity faced by such a company may be the challenge, not of selling more newspapers, but rather of entering new but related markets. Is an airline company in the airline business or the transportation business? How about Coca-Cola? Coke used to define itself as being in the carbonated soft drink market, where it enjoyed an 80 percent market share. When Coke redefined its market in terms of ready-to-drink beverages, its market share fell to 10 percent. The ready-to-drink beverage market includes bottled water, orange juice, milk, and any other drink sold in a bottle, can, or container. Such a redefinition radically altered the company’s perception of its market potential, and led to reinvigorated marketing efforts.

Exhibit 2.3 – What Business Are We Really In?

What is our business?

1a. What business are we really in?

1b. What business should we be in?

1c. What business(es) are we in, but perhaps shouldn’t be?

1d. Where do we see ourselves in a year? Two years? Five years? Ten years? (And why?)

1e. How will macroeconomic and political changes affect our business?

Who are we?

2a. Exercise: Create a one-page résumé for our company and include:

Experience

Education

Accomplishments

References

2b. What are we really good at doing? (What are our core competencies?)

2c. Ask yourself: What assets do or can I bring to our company? What skills? What contacts?

2d. What things should we be good at (but aren’t yet)?

What are we selling, to whom?

3a. Who are our customers? Who buy(s) from our company? (Who buys each product?)

3b. Why do they buy?

3c. What are we really selling? What benefits are our customers buying? … receiving?

3d. Who doesn’t buy (but could or should)?

3e. Why don’t they?

Who is our competition?

4a. Who competes with us? What business are they in?

4b. What are their unique selling points/advantages vis-à-vis our company?

4c. What are their weaknesses vis-à-vis our company?

4d. How do they advertise and promote?

4e. What are their pricing and discount policies?

4f. What are their customer service policies and practices?

4g. Who are their key people? What do we know about them? Experience and qualifications? Strengths and weaknesses? Personality traits?

What is our competitive position?

5a. What markets are we in?

5b. Who is our competition (in each market)?

5c. How are we positioned against the competition?

5d. How or where are we stronger? How or where are we weaker?

5e. If we worked for a competitor, how would we go about attacking our company to steal our company’s business?

How can we improve customer service?

6a. How do our customers feel about our company’s service? Why?

6b. Where is our service strong? What do people compliment us on, or thank us for?

6c. Where can we improve our service? What complaints have we had (even if they were not our fault)? How are complaints handled? Can this be improved?

6d. What customer service practices are established as our company’s policies? Are they written down? Where? Does everyone know about them?

6e. How can we make our customers feel like “part of the team”?

6f. How many ways can you think of regarding how we can offer better service and/or value to our customers? (At this stage, let