Why Strategy Is the Lifeline for SMEs

I’ve worked on various enterprise and supplier development programmes, and I’m finding it essential to give my piece on this bus word – Strategy! Look, running an SME (Any sized business actually),  without a strategy is like driving from Joburg to Cape Town with no map, no fuel or transport plan, and hoping you’ll just “get there.” Spoiler: you won’t. You’ll be like the holiday groups that end on WhatsApp with no implementation plan to the texts in the group.

A clear, well-defined strategy doesn’t just help businesses survive; it enables them to scale, pivot, and become sustainable in challenging markets.

Let’s actually start here: Why do SMEs often skip strategy?

Many entrepreneurs are hustlers by nature: resourceful, creative, and fast-moving. But without strategy.

The implications:

• Opportunities get missed because there’s no filter for what aligns with the business vision.

• Resources get wasted chasing everything instead of focusing on the most impactful moves.

• Growth stalls because decisions aren’t tied to long-term goals.

Okay then, The Business Doctor Keitumetse Lekaba, what now? Where do we even start as businesses?

Uhuh…….. Once you’ve crafted out your vision and your mission or purpose as we call it these days, obviously, I’m going to say start with your business model and unpack it using the business model canvas (BMC). Think of this as the X-ray of your business as it forces you to map:

• Value proposition

• Customer segments

• Customer Channels

• Revenue streams & costs

• Key partners, activities, and resources

Basically, it shows how everything fits together and where the gaps and weak points are. A crafted BMC makes it easy to then craft out your company’s strategic objectives so that you can start saying no to things that don’t align to your strategic objectives. I mean, imagine hiring staff when you don’t even understand what strategic objective they align with? How are you even compiling tasks and KPI’s when there is no strategic objective at play? But we’ll fix it; one entrepreneur and one business at a time.

Secondly, do your SWOT analysis. Sounds silly, right – it’s not. SWOT analysis is

simple but powerful: Strengths, Weaknesses, Opportunities, and Threats. For SMEs, it highlights where to double down and what risks to guard against.

Another powerful framework widely used is Porter’s Five Forces. This is a great one for SMEs wanting to scale in competitive industries. It helps answer:

• Who are my competitors?

• How easy is it for new players to enter?

• How much power do customers and suppliers hold?

• What substitutes could threaten me?

Now let’s make it a bit more practice. Because they’re doing so great , we’ll drill own on the Shoprite Group  as I believe they’re winning with strategy. In a competitive retail market dominated by other giants like Woolworths, Pick n Pay, Spar and the likes,  The Shoprite group, Checkers specifically reshaped its game plan and is winning at it.

• Value Proposition: The Shoprite group is very specific with positioning. Between Usave, Shoprite, Checkers and Sixty -Sixty, they are very clear on the target market for each and very clear on the play for each store. They know exactly where they’re playing and how to win in ach field that they’re playing in. Reminds me of Orlando Pirates but let’s not go there.

• Innovation: Their Sixty60 app wasn’t just a gimmick; it solved a real customer need which was  fast, affordable delivery. Now with the smart trolley coming up, they have just redefined convenience for in-store consumers.

• Customer Segmentation: They didn’t abandon price-sensitive shoppers but offered differentiated experiences across product ranges.

• Execution Discipline: Slick supply chain, tech adoption, and consistent rollouts across stores.

The Shoprite Group shows that with a sharp strategy, even in crowded markets, you can shift perception, win loyalty, and grow market share.

Now you’re probably asking yourself…….. where do I even start? Well, as a business owner, remember that strategy simply defined is deciding “Where am I going to play and how am I going to win”? you therefore need to start by asking yourself these 3 questions:

1. What is my winning space? (Niche, segment, or need I serve better than anyone else?)

2. How do I measure success? (Revenue growth, jobs, market share, impact?)

3. What frameworks am I using to guide decisions? (BMC, SWOT, etc. — not guesswork.)

I believe SMEs don’t fail because they lack hustle; they fail because they lack strategic direction. A good strategy gives your hustle purpose. You know what they say, “If you don’t decide your direction, the market will decide it for you, and you may not like the destination.”

Yours in development,

The Business Doctor Keitumetse Lekaba