FT Essential Guide to Developing a Business Strategy

1

Knowing your business

“Real knowledge is to know the extent of one’s ignorance.”

Confucius

In this chapter

• Identifying key segments
• Segmentation in a start-up

How well do you know your business? In which cupboards do the profits reside?

This is the essential starting point in strategy formulation. You need to know your business. You need to clarify the major business segments you compete in and which contribute most to the bottom line. Only when you have a clear perspective on which business segments are material to your firm’s strategy should you proceed.

If your business is a start-up, the same applies. But we’ll start with identifying ...