According to the old saying, good ideas are a dime a dozen. There’s no shortage of possibilities in business. But not all those ideas and possibilities are equal. You have to be able to sort out which ones are the right fit for your business. Given limited time, resources, and capacity, you can’t chase after every shiny new thing that comes along.
This is where strategy comes in. Strategy helps you separate the excellent business opportunities from all the merely good ideas. Strategy allows you to say yes to the right ones, and no to the rest. Without a strategic perspective, companies are doomed to go the way of Blockbuster.
Strategic decision-making involves asking whether your company is the right company to pursue the idea. That means assessing whether it plays to your strengths and fits with your brand. It also means discussing the opportunity costs, or the things you’ll be giving up to pursue the new idea. And any new opportunity has to have long-term potential. It can’t just be a flash in the pan.
In today’s dialog, we’ll rejoin Paolo, Adrian, and Michelle, who work for a solar panel company. The company has traditionally focused on commercial projects. Now they’re discussing whether it’s a good idea – strategically speaking – to get into the residential market.
1. Why is Adrian concerned about the opinions of residential customers?
2. What does Adrian say is the focus of their company’s brand?
3. What is Michelle’s concern about the idea of providing energy audit services?
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