Today, we had held a workshop covering Strategyzer’s Business Model Environment tool. During this program, we reviewed the external factors that can shape a business and help you capture the competitive advantage we all seek. Oftentimes, we ask ourselves do such things really matter? Is it worth it for me to spend my time understanding the needs and demands of my market or the regulatory or technology trends within my industry?
Your business environment can make or break your startup. And, if you understand it well enough, you can use it to mold your business model into its own competitive advantage, but it takes listening to what’s happening all around you.There are four major components to consider:
- Industry forces includes factors such as your direct and indirect competition as well as other startups looking to play in your space.
- Key trends like regulatory trends may create constraints, and societal trends can dictate whether or not your customer is likely to buy your product the way you intend to sell it.
- Market forces like revenue attractiveness, market segments, and barriers to entry can dictate the best market and revenue models.
- Macro-economic forces like capital markets can indicate the availability or likelihood of investment in your type of company. These are just a few of the external factors exerting influence on your startup, whether you’re paying attention to them or not.
Today on ‘Take Action Tuesday’ here are a few steps you can take to gain the competitive advantage:
Listen to the market
Pay attention to what your competitors, industry leaders and customers are saying on social media. You can discover what’s working and what’s not and who should be part of your influencer network.
Monitor your industry
Check out the events, newsletters, blogs and other relevant content your industry experts and organizations are putting out into the market space. This information can reveal new opportunities or potential threats. It may also help you identify key partners and customer segments.
Share your findings internally
Keep your team abreast of the environmental factors that impact your business and their day to day jobs. Each of your team members (marketing, sales, technology, operations, etc.) will filter the information through their lens, creating a more well-rounded perspective for your organization as a whole.
Hope to see you soon over here at ASU Chandler Innovation Center.