Page 133 - Writing Winning Business Proposals
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124                                Writing Winning Business Proposals


                          has a major strength: It has already worked successfully with ABC. An equally
                          important strength will be their cost. Since their proposed fees could be tens of
                          thousands of dollars less than yours, how will you be able to communicate value
                          for your higher-cost service? Since they aren’t full-service firms, these competi-
                          tors have definite weaknesses, you believe, because they don’t have expertise in
                          all the functional areas to be addressed during the project, including (among
                          others) customer service and supply chain analysis, nor do they have sufficient
                          experience and knowledge to properly evaluate the critical qualitative factors. In
                          addition, their staffs may be too small to enable them to initiate and complete
                          the study quickly, which is a major concern (a hot button, you hope) to key ABC
                          management.
                            Your proposal strategy will have to stress the comprehensive nature of the proj-
                          ect, which will demand a wide range of business skills that probably are beyond
                          the more functional capabilities of these two firms. But you also must stress your
                          considerable strength in the specialized skills of these smaller firms while con-
                          vincing ABC that it needs more than such skills. You can counter the one firm’s
                          successful experience with ABC by stressing Paramount’s successful completion
                          of similar studies for comparable companies. Above all, you will have to stress
                          the added value provided by your full-service firm and perhaps the risks to ABC
                          of choosing a consulting firm whose more narrow focus could result in a study
                          that is less comprehensive and thorough.
                            In these situations, there are always two other potential competitors: in-house
                          competition and other initiatives competing for the same resources that would
                          have to be used for your project.

                          ◉  Concerning in-house competition: Morrison admitted to Gilmore that he
                            had volunteered to do the study in-house. For all you know, Morrison may be
                            working behind the scenes even now to sell this approach. Or, during the selec-
                            tion process, he could take one or another of the consultant’s methodologies
                            and try to convince Armstrong that Morrison’s team could use it. You consider
                            these possibilities unlikely, however. Besides, you undoubtedly will have good
                            themes to counter this in-house competition. Because you decide that in-house
                            competition is unlikely, you don’t complete that portion on Cell 5.
                          ◉  Concerning other initiatives: It would be helpful if you knew ABC’s strategic
                            direction, but you note a red flag next to that item on Cell 1 of your Logics
                            Worksheet. By understanding ABC’s strategic direction, you could anchor
                            your proposal’s argument by clearly linking the proposed initiative with that
                            direction. Nevertheless, you are confident that this initiative is absolutely vital
                            not only for ABC’s health but also for its survival. You decide, therefore, not
                            to include that analysis in Cell 5, which, in modified form, looks like the one
                            shown in Figure 7.9.
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