Based on
strategic marketing plan book "How Much for Just
Spider?"How strong are your Web site strategies? Do they move your business toward achieving your objectives or overall goals? Think of your strategies as a framework that clarifies
approaches you will take in meeting your Web site's objectives. They are more specific than
objective, but do not include exact details. After developing
strategic framework, you will fill in
details with tactics (I will leave tactics discussions for later, in part four of this series.).
You can increase your strategies' effectiveness by taking into consideration
business environment you operate in - both online and offline. Two approaches to analyzing
business environment are to complete 1) an industry analysis such as Porter's Five Forces and 2) a situation analysis such as a SWOT analysis.
~~~~~~~~~~~~~~~~~~~~ Porter's Five Forces ~~~~~~~~~~~~~~~~~~~~
A formal industry analysis, such as Michael Porter's Five Forces, is more in depth than simply looking for trends and general industry information and can help you better develop successful strategies.
Michael Porter's Five Forces can provide insight into both your online and offline competitive environments. In
Five Forces Model, Porter explains that in any industry there are five forces that influence what happens within
industry:
1. Existing companies, 2. potential new companies, 3. substitutes for products offered, 4.
suppliers, and 5.
customers.
These five forces combine to make up
business environment. By studying
structure of and dynamics between these forces, you can discover opportunities for improving upon your strategies. Porter designed his basic model to be applied to an entire industry. The same analytical method, however, could also be used to study a narrower universe, such as online presence within an industry. When developing your Web site marketing plan, for example, you can identify
"forces" as:
* Competitors: Those sites that offer
same product, service, or information as your site.
* Potential new entrants: Your site-less off-line competitors as well as new companies entering
industry via a Web site.
* Customers: Visitors and potential visitors to your Web site and your competitors’ sites.
* Suppliers: Those companies that supply you with
products (or parts if you are a manufacturer) and/or services offered on your site. Other suppliers are
Web hosting, software, and other vendors that supply Web- enabling technology.
* Substitutes: Other means and sources for
same products, services, or information as your Web site provides.
Using these definitions for
five forces, you can get a clearer picture of
business environment in which your Web site competes. Be aware, however, this is not a true Five Forces analysis. This analysis only borrows Porter’s forces to lend structure. His full analysis goes beyond
information gathering and cursory analysis explained here. By fully utilizing Porter’s strategic methods you can gain an even clearer picture of
industry, resulting in sounder strategies. To fully appreciate Porter's model, study his two classics, "Competitive Strategy: Techniques for Analyzing Industries" and "Competitive Advantage: Creating and Sustaining Superior Performance".