GTM Strategies: Going the distance

When I first started doing business, I used to read a lot of books written by business leaders like Charles Handy, Thomas J. Watson, Peter Drucker, and Guy Kawasaki. If there was one thing that I learned from them was their absolute dedication to a single mission – some call this strategic focus.

Most people put a lot of emphasis on setting up an infrastructure for their new business. While basic infrastructure is the basic building block of any good business, setting up the superstructure is the basis of a great business. Infrastructure refers to the capital goods, tables and chairs, office space and so on. On the other hand, superstructure refers to the intangibles like partnerships, branding, innovation, capability or core competency. The intangibles are the hardest to build. Often building your superstructure becomes the strategic obsession.

For a startup company, the strategic focus is based on the key success factors of your business. In an industry that is highly innovative with low costs and low barriers of entry, our key success factor was gain leadership position in one key market segment. Ironically, doing this is contrary to conventional wisdom of spreading the risks by diversifying the business.

Depending on the financial resources available to the startup, the company at this stage can exercise one or more of these options:
1. Develop new capabilities in the adjacent vertical markets.
2. Develop new products and services in the horizontal base markets,

Most companies at this stage plunge further into their own micro-verticals to enjoy the fruits of their labour without any consideration for opportunities in the horizontal market segments. However, in a lot of cases, especially in mature markets, the company would be better off serving and dominating their own markets.

Transitioning into a horizontal market is like making the next big bet. The team needs to evaluate not just the financial ramifications but needs to make as assessment on the formation of new partnerships, product/service capabilities and execution time.