Identify the Goal - II So why is it difficult fo...

Identify the Goal - II

So why is it difficult for a company to decide on its objectives?

It is not, I assert, because business leaders are lazy, or stupid. I truly hope this is a true statement. I propose that it is difficult to settle on firm objectives because of the infinite possibilities that present themselves for any given situation.

Let's take our example from my last entry....

Hypothetically, we are developing a strategy for a software company that is established in a relatively mature market; i.e the desktop application market. For illustration purposes, they are the number three provider of their class/type of software. They have 20% market-share. The leader in the category has 50% share. The second largest provider commands a 30% share.

So, what constitutes victory?

Is it increasing market share above 25%?

Is it attaining the number two position in the market place?

Is it attaining the number one position in the market?

Is it establishing a monopoly in the market?

We could continue listing options, but the fact that four come immediately to mind should suffice.

So which should we pick? I'll give you a hint; what we pick doesn't matter. Yet.

First, we have to understand what our opponents can do, and what we think the are going to do. In military parlance, we must understand their capabilities and intentions. Once we determine that, we can pick the most appropriate definition of victory.

And once we define victory, we can begin building a strategy to achieve it.