In this section
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Define a (strategic) weakness
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Use the StrategyCAD Strategic canvas to identify and respond to a weakness.
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Explore options for responding to weakness to minimize disadvantage.
Weaknesses are gaps
where a business is
at a competitive disadvantage relative to its peers.
These gaps could be:
Weakness in the value proposition - value propositions available from rivals or substitutes are more desirable to the consumer being targeted
Weakness in the integrated value chain. It could be in one or more of Input management, Operations, Distribution, Sales & Marketing, After service support, Procurement, Technology management, Human Resource Management or general Administrative management.
Other potential sources of weakness can include:
Weakness in focus - there may not be a resource or capability constraint, but there is a lack of focus on activities of the most value.
Weakness in flexibility - can occur when a value proposition is broad i.e. composed of multiple phases in the industry value chain - the coupling between different stages of the value chain mean that when there is an industry innovation i.e new technology then including that into the value chain is untimely or costly because of the coupling between the different stages.
Examples could be:
excessive employee turnover resulting in decreased productivity and value delivery
lack of brand recognition resulting in decreased revenue
underskilled / insufficiently trained sales team resulting in lost sales.
Weaknesses are most valuable to understand and resolve when they are linked to decreasing a customers' willingness to pay or buy or decreased performance of the integrated value chain effecting (time, cost, quality) in the value chain.
Weaknesses and strategy pattern
Weaknesses also need to be considered and relevant to the strategy pattern the value proposition is related to. For example, if the strategy is using to a cost leadership pattern, then weaknesses will be anything that increases cost without increasing value to the customer. Alternatively, if the strategy pattern is one of differentiation, then weaknesses can be considered related to anything, that inhibits the organizations ability to understand, innovate, and respond to the needs, desires and demands of its' target segments.
In StrategyCAD™ weaknesses can be conveniently recorded directly with the value proposition affected and on the business supply side of the strategic choices canvas adjacent to strengths and resources.
To record a weakness, click the + add icon on the Weakness section of the Strategic choices canvas.
what are the differential competencies available in an organization
These are the organizational strengths
what competencies are necessary to provide an effective value chain
ensure there are policies, procedures and actions to ensure those are mutually supportive over time
Some common options for responding to weaknesses include
Inverting a weakness
Inverting a weakness, means to play to your business strength and suggest that a rivals strength is a weakness. For example, currently, I see advertisements suggesting a consumer is being misled and compromised for buying cheap car insurance. In this case the insurance company with the more complete but more expensive option is representing the cheap insurance as nasty and inferior. In this case they are aiming to invert a rivals percieved strength as a weakness.
Outsourcing
If your business lacks a capability or access to resources, then consider if the capability can be outsourced and integrated into your value chain.
Outsourcing can be to other businesses, crowd-sourcing, freelancers and so on. Outsourcing is particularly valuable when the capability is not a substantial contributor to your value proposition and can be performed with lower cost, faster or at higher quality by other business with the relevant capabilities and focus.
Insourcing
Insourcing can be done to resolve inflexibilities or performance issues from an outsourced provider where there a realization of advantage from insourcing and the capabilities and resources needed to deliver the capability / competency are expected to be available.
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Nurture the capability from weakness to strength
Use the StrategyCAD™ competency canvas to define a new competency. See the Competency section of this guide, to record and nurture the weakness into a strength.
Partnerships / Acquisition
Form a partership / alliance with or acquisition of another organization which has the capability or resources to overcome the weakness(es) in your business. This alliance is purposed to enabled the combined businesses to deliver new / unique / superior value for the benefits of customers and each business stakeholders.
