Know Thy Customer

Regardless of which type of strategy a small business pursues, it is essential to know what customers value - both its own and its competitors customers. A "customer value analysis" determines what the underlying NEEDS of the customer are, on two levels:

1) Distribution channel - when there is an intermediary channel between the small business and the end user (ex: business-to-business), and
2) End user - when there is no intermediary channel between the small business and the end user (ex: business-to-consumer)

These two types of customers have different benefits and costs so it is important to know the underlying NEEDS of both to determine the customer value analysis equation, which will eventually unfold into what type a strategy a small business will pursue.