Why Your Strategy’s General Policy Is Critical
SnapDeal is an Indian company that is very successful in selling high-transaction products to value-conscious customers. They have been successful because they adhered to the General Policy of their strategy. What they were willing to do and not willing to do. Sometimes the decisions were very difficult.
While merchants everywhere were touting the latest cell phone, they decided not to sell them because they could not make the transaction efficient enough to be profitable. Many people told them not selling cellphones was a mistake. They didn’t rule out selling cellphones, they ruled out selling cellphones until they could do it efficiently and make a profit.
Based on their strategy of selling to the value-conscious customer, their General Policy was if they were unable to make the transaction profitable, they would not sell the product regardless of its popularity and selling price.
By sticking to their general policy, it did not turn customers away. In fact, it solidified the “Positioning” in their customer’s minds as a retailer of value products. Today the company is thriving in a very competitive marketplace,
This story illustrates the value of having a long-term strategy and adhering to the strategy’s general policy and coherent action.
Are you staying on the path laid out by your strategy?