Strategy + Solutions

Four New Exciting Ventures Receive Funding

Congratulations are in order for four exciting ventures that recently received funding and provide solutions for the small and medium business:

Speakanet, a provider of technology that enables businesses to replace existing conventional land-line phone systems(analog or VoIP) with a solution that is mobile, requires no hardware, self-provisioned, and web-based received $10,000,000 in a round of funding from Eqvitec Partners, Northzone Ventures, and Via Venture Partners.

Merchant Circle, an internet promotion and marketing services firm raises $10,000,000 in Series B Funding from IAC/InteractiveCorp, Rustic Canyon Partners, and Scale Venture Partners.  This idea and technology appears to be home run solution that should make waves and become especially useful to the small and medium business marketplace.

YouMail,  a technology solution that provides free cell phone voicemail services raises $4,500,000 in Series A Round from VantagePoint Venture Partners.

Peer39, an online markletplace that matches offers in a variety of business verticals raises $8,200,000 in  Series B Financing from Canaan Partners (lead), Dawntreader Ventures, and J.P. Morgan Partners.

Each company above has a value proposition that can help your small or medium business.  Please check them out share your feedback.

Web 2.0 Summit April 25-28th 2008 San Francisco

The O'Reilly Media/CMP Technology Web 2.0 Expo call for participation is nearing its end.  This is the last day to enter your name in the hat to share your Web 2.0 tales and experience.  If you think you might want to then go here now.  The 2008 event should be oustanding!

Applying Porter's Five Forces Model to Your SMB Strategy

Michael Porter, the famed Harvard professor and the premier thought leader on business strategy, created the Five Forces model.  This model is an effective business unit strategy tool for the small or medium business.  Basically, this model is an effective way to look at your business from the outside-in and analyze the value of an industry structure.  This Competitive Forces model is developed by the identifying the five fundamental competitive forces shaping your small or medium business (SMB):

1. The Entry of Competitors.  Your SMB should ask questions like: What is the level of difficulty for new entrants to start competing.  Is the barrier to entry high or low?  If so, what are the barriers?  Identify them and address them strategically.

2. Threat of Substitutes.  Your SMB should think about how easy its product or service be substituted and made less expensive.  What are the variables at play with regard to marketplace alternatives.

3. Bargaining Power of the Suppliers.  Your SMB should understand the strength of sellers in the market for your product or service and determine whether or not a multitude of suppliers exist for your product or service or if can your product develop a monopoly?

4. Bargaining Power of the Buyers.  Your SMB should determine the strength of the buyers and determine whether or not you can work together to create synergy and growth.

5. Rivalry Among the Existing Players.  Your SMB should determine the level of competition between the existing players or if there is one dominant business or many competing companies with equal strength and size.

In theory, a sixth force could be added that includes the impact of government.  If your SMB is affected by this "force" you will need to make sure you examine it and develop strategy and tactics to effectively compete.

What is your SMB doing today to assess the changing landscape of the U.S and global markets.  This blog attracts readers from more than 75 countries around the world.  If you are only thinking local and not global you will surely miss many market opportunities for growth and market share leadership.  How is your SMB competing today?

"Software is Strategic. Software is Business"

If you haven't had a chance to read the book "Three Billion New Capitalists" by Clyde Prestowitz and you are a small or medium business executive or a strategist you must read it now.  The title quote is from the book and more specifically Chapter 5 "Serviced in India" and helps explain how India's dominance in IT outsourcing came about in 1965 when America decided to stop supplying India with critical electronics equipment during its war with U.S. ally Pakistan.  The whole book is a strategy gem and truly provides a strategic view of the paradigm shift that's been in the making for many years now but some small and medium businesses have not come to terms with yet.  What is your SMB strategy to tap into the "Chindia" market?