What is Strategy? And do you really have one? YGI Solutions

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1 What is Strategy? And do you really have one?

2 Values Goals Industry & Market Analysis Vision & Mission Strategy SWOT Do you really have a strategy? Supporting Organizational Arrangements Structure People Process Policies Rewards Activities

3 Our strategy is to be the lowest cost provider The company strategy is to grow by acquisition We will provide unmatched customer service Our strategy is to be the first to market Our strategy is to outsource back-office functions We have an online strategy Our strategy is to sell direct NONE of these are strategies

4 What is it then?

5 A strategy is a detailed breakdown of integrated choices that guide how you re going to accomplish your goals & objectives

6 It is critical to realization of a business plan and achieving the mission

7 It s also something to be reevaluated and adjusted regularly to accommodate changes in market conditions, government regulations, core competencies, or any other forces that affect previous versions

8 Why is this critically important?

9 Key Benefits Everyone on the same page Action plan for putting strategy into play Basis for adjustment as market forces necessitate

10 Arenas Staging Vehicles Economic Logic Differentiators The Components of Strategy

11 Arenas Where are we going to be active? (and with how much emphasis)

12 Product types and categories Consulting services, wholesale parts, fashion accessories, hosting services Market segments Healthcare, higher education, government, manufacturing, legal, retail Geographic areas Including those you purposely don t want to be in Core technologies Computing platforms, bio-tech, streaming, manufacturing tech Value creation stages Product design, selling, servicing, distribution, implementation, installation Online vs brick & mortar Arenas

13 ABC Corp is going to utilize e-commerce technology to sell outdoor sporting goods from a variety of manufacturers online. ABC will initially market and sell into U.S. markets because that is where we are based and have the most familiarity with consumer buying habits and demand for outdoor sporting goods. ABC will expand into English speaking international markets starting with Canada, followed by the U.K. and Australia after establishing a strong brand in the U.S. We will focus on English speaking markets initially because we currently lack ability to develop and maintain other languages on the e-commerce platform, and to support non-english speaking customers. Example

14 Vehicles How we re going to get there?

15 Internal development Licensing Outsourcing Joint ventures Acquisitions Franchising Delays Added Expense Vehicles

16 ABC Corp is going to utilize Amazon Web Services for e- commerce capabilities and to host the platform. This will greatly reduce capital and development costs and eliminate the need for in-house platform maintenance. We plan to acquire Eh Online Sports in Toronto or GWN Outdoors in Edmonton to give us a strong existing customer base in Canada. We plan to utilize the services of Down Under Marketing to launch in Australia, and will use Dingo Distributing who has strong relationships with 13 sporting goods manufacturers in Australia to fulfill orders there. Example

17 Differentiators How will we win in the marketplace?

18 Image Price Customization Styling Reliability Customer service excellence Zappos Value - Honda CAN T BE ALL! Differentiators

19 ABC Corp is going to offer 7x24 phone and online customer service, and unconditional returns. ABC will provide free gift packaging for purchases over $50. We will follow up every delivery with a personalized asking the customer to respond with how satisfied they are with the product purchased, the time it took to deliver it and the overall purchase experience. Responses will be carefully tracked and used to ensure ABC maintains top customer satisfaction levels in the retail industry. Every employee of ABC will be required to take advanced customer service training. All suppliers and partners will be vetted for high customer satisfaction levels before agreements are signed. ABC will only sell products of highest quality standards from manufacturers with strong quality track records. Example

20 Economic Logic How will we obtain our returns?

21 Lowest cost through scale advantages Walmart enormous size & market share enables them to muscle suppliers into lowest costs Lowest cost through scope and replication advantages Easy to replicate operations, store layouts, or use of distributors Keen understanding of good site locations Easy to manufacture product designs Premium prices due to experience or quality BMW Premium price due to unmatchable product or service Advertising during the Super Bowl Premium price due to proprietary product features Tesla Non-profit? Do you need to maintain a reserve? Economic Logic

22 ABC Corp is going to charge premium prices based on superior product quality and customer service that cannot be matched by outdoor sporting goods competitors. Example

23 Staging What will be the timing, velocity and sequence of our moves?

24 Sequence of initiatives Sales at MVP, or wait for fully viable product? Funding phases and timing Speed and timing of expansion Which geo area(s) 1 st and when to go into new ones? IPO timing Exit strategy Staging

25 Stage 1 Example ABC Corp will acquire e-commerce services on a proven platform with support for international sales. ABC will secure relationships with manufacturers of high quality outdoor sporting goods with strong presence in the U.S., but also with proven international distribution channels. ABC will launch in the U.S. and operate there exclusively until it has established a strong brand. Stage 2 ABC Corp will acquire one of two dominant online outdoor sporting goods businesses in Canada to achieve a 50% leap in revenues. We anticipate completing this acquisition two years after launching in the U.S. Stage 3 ABC will launch overseas in the U.K. and Australia after establishing relationships for marketing and distribution services there in year four of operations.

26 Arenas Staging Vehicles Economic Logic Differentiators The Components of Strategy

27 Put It All Together

28 Does the strategy fit with what s going on in the environment? Is there healthy profit potential? Does the strategy exploit your key resources? Do the resources you have give you a good head start on competitors? Will the envisioned differentiators be sustainable? Will competitors have difficulty matching you? Are the elements of the strategy internally consistent? Do they mutually reinforce each other? Do you have enough resources to pursue this strategy? Money, managerial time and talent? Is the strategy implementable? Will you be allowed to pursue it, and is your team willing and able? Evaluation Criteria

29 New business Business transformation Product expansion Market expansion Current state analysis Practical Application

30 Why should we do this?

31 For The Win!

32 Questions