I simply call it magic, yet it is so logical, so systematic and so helpful that most organizations will appreciate once they get used to it.
Let me explain it a little bit
Another aspect that business owners and planners can learn from the R/R chart and get prepared for it is what it takes to be at a certain level at a certain point in time, and how to be at another level at another future point of time.
Let me explain it a little bit
- The "horizontal R-Axis" is the REACH axis and it is all about customer and markets reach. We may think of customers and markets as individual ones. We may also take them by geography, by industry segment, by size, ...etc.
- The "vertical R-Axis" is the "RANGE" axis and this is about range of offerings (products & services) to be offered through "push" & "pull" sales techniques to the selected customers and markets identified in the business model
That's not all ... Let me elaborate a little bit more on the colored arrows inside the chart and explore some of the possibilities out there:-
- The red (horizontal) arrow showing the "customer/market driven" growth direction based on having unique strengths/differentiators/exclusivity in the offerings, and wishing to expand the same to new markets and customers.
- The green (vertical) arrow is the "offerings" growth direction based on having unique and special relation with the customer(s) that opens the door for new brand of offerings to these customers based on their needs and requirements,.
- The gray (diagonal) arrow shows the resultant overall growth direction showing a blend of the horizontal and vertical growth patterns.
Another valuable thing in the R/R chart is that it sheds more light on the start point, its requirements and its potential growth
- The simplest model would consist of one customer only and one offering only, ending up trying to sell a specific offering to one specific customer and that is definitely the simplest model.
- In real life, no one will opt for the 1X1 model, they'd better go for mX1 or 1Xm depending on their own circumstances and preferences the idea is simple
- If they have their strength/excellence/exclusivity/differentiation in the offering itself, there would be a tendency to extend the model horizontally and seek additional customers/markets for it
- If they really enjoy a very special "love-love" position with their customer, they may tend to expand vertically in the offerings per customer needs and requirements.
- Even for those who choose to go for the 1X1 model and turn to be successful in it, they will naturally go in either direction depending on where their success/excellence/distinction is.
Having said that, there are some additional thoughts to the R/R chart that I would like to share
- Many dreamers/wishful thinkers tend to believe they may start with a "small shop" employing the 1X1, mX1, or 1Xm model with very small investment and then grow magically into a "big supermarket". Nothing wrong in the dream itself, but unfortunately, most of these dreamers/wishful thinkers do this without any clear and tangible differentiation on the customers/markets side or on the offerings side.
- As a result, the majority (90% more) either shut down after a while or just remain small shops with no hope or future.
- Expanding horizontally in the markets/customers direction implies there is a strength in the offerings side, intended investments/clear action plans in marketing & sales direction. Organizations of this type may ultimately turn into "sales and marketing" entities; distributors, value-added re-sellers, ... etc. regardless of the offerings themselves. Business owners/planners taking this direction need to figure out what it would take/cost to add one (or more) customer, industry segment, geographical location or even a sales branch.
- Expanding vertically in the offerings direction implies established strength/excellence in the customer/market side building customer relationship intimacy and mutual trust/respect with selected customers, markets, industries, ... etc. In this case, business owners/planners need to focus more on the offerings side in terms products, services, solutions, and/or other requirements/needs of these selected customers/markets
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