6. Key Success Factors
Key Success Factors
Key success factors (also known as competitive emphasis or strategic posture) state the important elements required for a company to compete in its target markets. In effect, it articulates what the company must do, and do well, to achieve the goals outlined in its strategic plan.
The following questions need to be answered:
What are the key success factors in this market – what must you do in order to be successful? Examples: In order for a bakery to be successful it must at least sell bread and offer fresh precuts; for a tuck shop to be successful it must sell airtime, bread, milk, cold drinks and cigarettes and must be open early in the morning and close late at night.
What makes it different to competitors’ products and services? Example: In what ways are our products or services different from our competitions. Mochahcos has an edge over other take aways as they offer spicy food. Mac Donalds has an edge because it is open 24 hours. Chicken Licken has an edge because it sells really cheap food.
Will people still want to buy this product / service in future? Are there any substitutes products or service that people could buy? Example: the sales of VHS cassettes and machines dwindled in the wake of new technology in the form of DVD discs and machines.
Think Point
Think about how you could use this tool in your personal life to better understand what it means to be successful.
Tasks
While working through this example, prepare your own Key Success Factors in the appendix at the end of this module.
Case Studies
Watch the following video to gain more insight into the meaning of a Key Success Factors