Tips for structuring a strategic market plan

Again, high-tech companies should follow a slightly different path when creating their strategic market plan, as compared with their non-tech peers. This is a result of the different dynamics that are unique to high technology. For instance, competitive actions and reactions are much quicker in the technology sector. Thus, traditional planning processes are quickly rendered obsolete. Market planning in the technology sector must be more nimble, simpler, and integrated.

Below are some quick tips as to what to focus on:

1) Start with internal capabilities before looking outward: define source of your unique value and core competency. Analyze internal financial resources, intellectual capital, manufacturing capacity, brand equity, technical and business skills, knowledge).

2) Define the broad business arena that you will focus on and segment it based on benefits and functionality that you are capable of offering.

3) Understand the features that customers value the most but also understand what trade offs they are willing to make and at what are the price points (this is best done via conjoint analysis).

4) Understand the buying dynamics: who is making the purchasing decisions, what needs are fulfilled by the technology, who in the organization gets involved and when. What are the top 5 buying criteria? Is it brand, reputation, partner support. What are the top 5 product attributes the customer is basing their decisions on? Reliability? ROI? Support? What are the barriers?

5) Understand the value chain: where is value created, from suppliers of raw materials to the channel.

6) Analyze competitive landscape: who provides related products or services, what are their value propositions and core competencies. What is their business and distribution model? How do you compete? Differentiation? Price leadership? How do you make customers switch to your product or service? Who are your direct and indirect competitors? What is the level of threat of a substitute product or a "killer ap" coming along before you get to the cash-cow stage?

7) Based on the above, conduct a SWOT and GAP analysis to determine what will make your firm achieve a sustainably profitable position in the market. Are there synergies with other products/ processes to be exploited? Is investment into new initiative leverageable? Is your strategy consistent?

8) Select a FEW top opportunities to focus on. Concentrate your resources and develop a leadership position in the key truly attractive markets or segments. Don't over-extend your resources.

9) Select the appropriate channel (reselling vs. influence). What players are best positioned to a) sell your product while b) realizing lucrative gains. If your product is complex, look at SIs and consulting firms channel. For commodities, Service Providers, VARs, ISVs with complementary products might be your best bet. Plan and execute a focused strategy of building key channel relationships. Develop partner programs that will incentify your channel to work with your firm.

10) Finally, develop a financial model and determine the level of investment to achieve your target ROI.