The Value of Value Creation
In the UK, almost 60% of small businesses fail in their first three years of life as per an article from Beauhurst dated 15 Sep 2022.
Research on business failures and growth challenges often focuses on broader themes such as market competition, inadequate business planning, changes in consumer behaviour and financial mismanagement.
Value creation planning offers several benefits to a business, helping it to not only survive but also thrive in a competitive market through creating competitive advantage, customer retention strategies, increased customer satisfaction, innovation and adaptability, market expansion, optimised resource allocation, employee engagement, financial performance, brand reputation and long-term sustainability. It brings strategic focus for all employees by providing a clear and shared understanding of the organisation’s goals, values, and specific ways in which each employee contributes to creating value for customers and stakeholders. In SHS’ journey to sustainable growth, value creation planning is vital throughout the deal lifecycle of our portfolio companies.
To ensure success of a designed strategy, it’s crucial that we
Use advanced data analytics to gain deeper insights into customer behaviour, preferences and market trends anticipating future needs and tailoring the value creation strategies accordingly.
Invest in advanced personalisation and customisation techniques to tailor products or services to individual customer needs.
Implement dynamic pricing models based on real-time market conditions, demand fluctuations and customer behaviour.
Engage with customers directly to solicit their input on product development and improvements to ensure that offerings align closely with their preferences.
Shift towards experiential marketing strategies that create memorable and immersive experiences for customers.
Form strategic partnerships and collaborations within our industry to create a comprehensive value ecosystem.
Consider subscription-based models to create ongoing, recurring value for customers.
Integrate sustainability in all elements of the business operating model.
We constantly upgrade and equip ourselves with the current tools, tactics, and strategy frameworks seeking expert external advice, and trainings. We learn from people’s perspectives to adopt new insights that can be a valuable practice for personal and professional growth. We also have an active list of subject matter experts and advisors for each of the businesses that we seek advice from to stay ahead of our competitors in designing the corporate strategy. We actively follow “PrepTalks” which is UK’s leading training provider for private equity backed CEOs and their management teams.
M&A has been one of the key drivers of our growth pillar and we love listening to “M&A Science” podcasts to learn from Corporate Development leaders from around the world. It’s important that we inculcate the best M&A practices in the deals we do at each of the businesses to realise the target synergies efficiently using a good mix of EQ with IQ.
