Competitive edge so what is your competitive edge how

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: locations, then you should include all the detail you can. If you are describing a manufacturing business for bankers or investors, or anybody else trying to value your business, make sure you provide a complete list and all necessary details about capital equipment, land, and building facilities. This kind of information can make a major difference to the value of your business. On the other hand, if your business plan is for internal use in a small company with a single office, then this topic might be irrelevant. Thinking Strategically About Your Company One of the most valuable benefits of developing a business plan is thinking in depth about your company. You started that as part of Chapter 3: Initial Assessment, as you entered drafts of your objectives, mission statement, and keys to success. A standard plan also includes sections in the strategy chapter that provide deep background for strategy. This is a good point for developing those texts. Value Proposition Value-based marketing is a useful conceptual framework. The value proposition is benefit offered less price charged, in relative terms. For example, the auto manufacturer, Volvo, has for years offered a value proposition based on the value of safety, at a price premium. A more detailed discussion of this framework can be found in Chapter 18: Strategy Is Focus. Competitive Edge So what is your competitive edge? How is your company different from all others? In what way does it stand out? Is there a sustainable value there, something that you can maintain and develop over time? The classic competitive edges are based on proprietary technology protected by patents. Sometimes market share and brand acceptance are just as important, and know-how doesn’t have to be protected by patent to be a competitive edge. CHAPTER 6: DESCRIBE YOUR COMPANY 6.3 For example, Apple Computer for years used its proprietary operating system as a competitive edge, while Microsoft used its market share and market dominance to overcome Apple’s earlier advant...
View Full Document

This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

Ask a homework question - tutors are online