Principle 1: Sustained profitability
The conditions for generating profits are created when clients value your products or services enough to pay more than what it costs the business (you) to produce and provide them. Strategic planning is your opportunity to define business goals and objectives and devise strategies and action plans with thoughts of short and long-term ROI in mind. Assuming that profits will be inevitable if sales volume and market share are the only measurements of success could be misleading.
Principle 2: Value proposition
Be certain that what company leaders consider to be the value proposition—that is, the most desirable benefits—matches what target customers consider to be the value proposition. Do not attempt to produce and offer products and services that you expect will be all things to all prospects. A business needs strategies that allow the venture to compete in a way that allows it to effectively and efficiently deliver what its most loyal customers feel has value.
Principle 3: Competitive advantage
Those highly desirable benefits that sustain the value proposition must be reflected in and supported by strategies that shape them into sustainable competitive advantages. The successful enterprise will differentiate itself from competitors through not only the products or services offered, but also how those are packaged and/or delivered, customer service practices, pricing, branding and so on. Those unique features and practices will matter to current and prospective customers. Nevertheless, the company’s business model may resemble that of its rivals.