In other words, WHAT WILL IT TAKE for an organization to be successful?
The initial premise we have found at Momentum Consulting Group is that organizations must perform certain tasks to be successful at each stage of their growth. Over the next several articles I will identify six key tasks or dimensions, all of which have been supported by empirical research and operational deployment. Let’s dig in and look at the first of these six areas.
#1 Identification and definition of a viable market niche
We have found that each of these tasks must be performed in a stepwise fashion in order to build a successful organization, and, taken together; they comprise six “key strategic building blocks” of successful organizations. Each of these key tasks or strategic building blocks will be discussed in detail over the next several articles.
Let me first discuss the Identification of Market Segment and Niche. The first challenge for a new venture in organizational survival or success is to identify a market need for a marketable service or product. The chances of organizational success are enhanced to the extent that the firm is successful in this step.
The challenge is not merely in identifying the market but also, if possible, to capture a “market niche”, a relatively protected place that would give the company sustainable competitive advantages. Failing to define a niche or mistakenly abandoning the historical niche can cause an organization to experience difficulties and even failure. The process of identifying the market involves the development of a strategic market plan to identify potential customers and their needs and the creation of a competitive strategy.
So, I encourage you to share your thoughts on two questions that I will pose.
- What problem does your company solve?
- How do you solve this problem so uniquely in your market, that it creates market differential (competitive advantages)?