Topic 5: Stress Testing our Strartegies
At this point you should have started to develop a few strategies , whether that’s launching a new product into a new market you are unfamiliar with, perhaps is deciding to invest in marketing to increase sales within a current market you already compete in. Are you pursuing a strategy of low price low cost or targeting a luxury product sales strategy?
You may have one strategy or several strategies that you want to try, however going straight to market with a strategy without considering the potential impact can be costly both financially and in terms of time spent.
As such we suggest you use a simple model in which to sense check your strategies before embarking on their execution, whilst not fool proof this module may help you to save a lot of time and money in the long run.
We call this model the FAS Model
F – Feasability = Is the strategy feasable or realistic, do I have the resources to execute it in the time frame required and do you have the required funds?
A – Acceptability = Do all participants agree with the strategy, if a sole trader can you commit the time ?
S – Suitability = Does it meet the market needs , will it meet the price points required.
The opposite table shows the simple guide format of analysing your strategies. Options A, B, C in the left hand column represent your individual strategies, you may have more or less strategies, feel free to test as many as you have developed.
Next work across the grid placing a tick in each box that the strategy meets and a X in each that it does not meet.
Once you have completed this process then you should identify the strategy that has the best chance of success.
Note: This process is not black and white and relies on your best judgement given the research you have done, it does not guarantee success but will reduce the chances of failure.
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Activity: Test Your Strategies
Use the blank table to test each strategy you have developed to determine which one has the best chance of success.
Tip: Ensure you are honest with yourself
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Place a tick in boxes which meet the criteria
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Place a X in boxes which fall short of the criteria
Which Option provides the most ticks ?