STRATEGY
Strategy is the creation of a unique and valuable position, involving a different set of activities from the rivals, based on understanding competition (Porter, 1996). As Michael Porter described in his academic article, operational effectiveness can be easily imitated by your competition for a fast path to success, but that would result in homogeneity. Strategy combines activities that focus on your greatest strength, while making other trade-offs and limitations on others, in order to communicate a new strategic position for your product or service (Porter 1996, p. 74-77).
MINIMUM VIABLE SEGMENT
The most distinctive part of the Curated Concierge service offerings is the customer segmentation. The MVS is the active expatriate/second homeowner in Mallorca who are affluent entrepreneurs or investors [that work remotely or are semi-retired/anticipating retirement], and culturally aware with a strong interest in art and design. One could quickly take a lion’s share by focusing only on this market. The pandemic and all the political instability with populist growth in other countries has only increased this segment of the expat population.
From further customer conversations, I was able to understand the following:
- Expats form their social network due to common interests
- Expats rely on other expats for information (word-of-mouth is a strong marketing tool)
- There is a highly segmented population of expats (including but definitely not limited to, retirees, investors, hospitality business owners, ‘yachties’ (working on luxury sailboats/yachts), ‘culturaphiles’ (those who have disposable income or taking a sabbatical to live in a foreign country, and those escaping from bad experiences in their own country) – the best strategy is to focus on one particular expat segment
- Expats use of digital technology in their daily lives to work, research, and keep in touch with friends and family is much higher than average resident
- New expats have a much higher feeling of vulnerability when entering a foreign land, so trust is important (the reason why word-of-mouth recommendations is preferred method of getting information)
- Most of the first contact to the island comes in the form of the real estate agent either renting or selling their first home – this the best segment to market to for first mover advantage
BIBLIOGRAPHY
Porter, M . (1996 ) ‘What is strategy ’, Harvard Business Review, 74(6), pp. 61-78.