What are the 5 marks of long-term development provided by management consultancy?
- Market penetration
- New markets
- Alternative distribution channels
- New services
- New services to new markets
Operating a business and making sure it meets its current objectives while working towards its forward growth can definitely be a challenge for company owners. In this day and age, more and more specializations are evolving alongside customer requirements and newer regulations. This essentially accounts for the growing need for management consulting here in the Philippines.
Business strategic planning is the process of executing an approach built towards creating and maintaining a competitive advantage in the market which ultimately leads to business growth. Business leaders are continuing to seek the knowledge, expertise, and skill sets of management consultants to help in developing strategies for growth.
Let’s take a look at some of the key elements that come into play with these formative and developmental strategies:
Enhancing Market Penetration
First and foremost, in the world of consumer products, management consultants construct strategies that sell more products to the same consumer range. One example that illustrates this is the concept of super-sizing.
In terms of professional services, this approach translates to offering more services to the same client while not necessarily introducing anything new. But if you cater towards a relatively small number of clients, losing even just one of them would be a great risk factor.
One of the biggest and most common challenges that businesses face is getting a client to understand the full range of services that your company offers. Management consultants can provide their assistance by developing internal techniques for figuring out how to educate clients about your firm’s full range of capabilities.
Discovering New Markets
This type of long-term growth strategy has to do with offering your existing products and services to a new set of market consumers. This is one of the most common growth strategies that management consultants are well-versed in. In fact, many companies take this approach to an extreme by rolling out their services to every type of client.
However, this strategy comes with many potential dangers. It costs money and substantial resources in order to nurture and cater towards a new audience. The risk that comes with diluting your brand and underinvesting in several markets is very high which could lead to many business pitfalls. Management consultancy plays a great role in tapping into new markets while still retaining your strong association with a particular demographic.
Cultivating Alternative Distribution Platforms
In some cases, traditional consumer products utilize alternative distribution channels in order to promote items in saturated markets. For example, if it is apparent that competitors are distributing via retail channels, a company may make the decision to market their products directly to consumers using a direct response. However, in terms of professional services, alternative distribution channels are less common.
Although this strategy does not involve developing new services, the risks are mainly related to marketing and business costs; the time and expense it takes to develop alternative channels. Management consultants can assure your company’s long-term growth by acutely analyzing the right channels to move towards with the most optimal costs and without damaging your brand.
Developing New Services
Conceptually speaking, professional services do this constantly because no two clients have the exact same identical needs. But with matters concerning long-term growth, a company may feel the need to branch out and offer more than a variation of its current services.
A growth strategy that involves developing new services takes a substantial amount of time, effort, and budgetary allocation. This could be potentially harmful to your business because it could drive you away from concentrating full efforts towards critical activities such as billable work and overall business development.
The biggest danger here is the watering down of your brand. In the pursuit towards broader market recognition, your company could adopt a reputation for being a “jack-of-all-trades, master of none.” But with the expert abilities and high levels of experience that management consultants have acquired through the years, they are able to make the right assessments with how your business internally functions. They can implement all the right strategic changes that could help your company retain its core expertise while leaving room for safe experimentation.
Exposing New Services to New Markets
This approach is arguably the riskiest strategy for moving towards long-term success in the market. It combines the challenges of launching new services with the uncertainty and costs of cultivating a new market. But the potential for long-term business development is substantial enough to justify the risk.
Determining your company’s long-term growth strategy is a tricky proposition. But this is exactly what management consultancy thrives in. Business owners can greatly benefit from the professional and objective advice that management consultants can provide.
For any business, working and building towards long-term growth isn’t without its risks. One of the main roles of management consulting here in the Philippines is to guide businesses in understanding the many potential risks that come with expansion and growth. But with the points elaborated on above, business consultants can indeed lead you towards developing the most optimal strategies that are fit for ensuring your businesses growth and development.