One of the main benefits of the elaboration of this strategic plan has been the change of our strategic focus. We used to focus our efforts on selling the novel “Con un pan debajo del brazo” and on providing services to students and teachers of economics who could help with the trade of the book. After this report was written, our strategy became more focused on providing investment services using our trading algorithm for asset allocation purposes. As we can see, the change is huge.
There were many reasons for taking the decision to make this change, but probably the most important ones are: the size of the student and teacher segment was too small, pirated digital books and even illegal paper editions are very wide-spread among university students in Spain, our book will be the main set text on very few occasions, and so we will most probably be in second position when it comes to getting part of the students budget.
Therefore, for the future, our CORE BUSINESS will be the trading algorithm. The consequence of that decision is to relegate the segments of students and professors of economics, and also the book selling, to the background. However, we still will be able to serve these segments indirectly via publications aimed at investors which could also be interesting for students and professors.
Our MARKET STRATEGY is development – expansion, mainly based on two principal objectives. First, the operation of the trading algorithm with the aim to get 3 to 5 years of good results. Secondly, to generate interest in our trading algorithm as much as possible using our blog and social network account, communicating its achievements and providing interesting information for investors.
Our COMPETITIVE PROPOSITION will be based on providing a trading algorithm that develops a methodical calculation to generate the asset allocation between Equity, Fixed income (IG and HY) of different developed and emerging economies (positions can be short and long, and at the same time, offer an investing vehicle with very good performance in terms of Total Returns and reasonable good risk-total return relation).
Taking our strategic focus and our competitive strategy into account, we have identified a list of OPPORTUNITIES and we have ranked them to priorise the most interesting ones for our business. The list of the selected opportunities is:
- Publish articles that could help investors and ourselves to determine the timings of the financial markets.
- Implement monitoring of the main key variables that could help investors and ourselves to determine the timing of the financial markets.
- Interact better on the Facebook account.
- New way of interacting on Twitter.
- Enforce the risk valuation of the trading algorithm and adapt the asset allocation to these changes.
- Publicity campaigns via Twitter, Facebook and Google Adwords. According to this strategy, we have some STRATEGIC COMPETENCIES that could be especially interesting for the future of our business
- Operate a trading algorithm that has been between the best 4% Global funds in Spain in 2016 and between the best 7% in 2017. A trading algorithm that has an objective method to make the asset allocation.
- Facility to communicate complicated economical and financial concepts in a way that is easy and accessible, even for teenagers.
But if we want to be successful in the future, we need to implement an Internal Development plan that could begin with some measures to get the Enhancement of Strategic Competencies. We have identified 3 main actions in this sense. First, the leader and some members of the project read 4 books every year about value investing and technical analysis. Secondly, implement a weekly routine to follow the evolution of main macro and technical variables. Thirdly, implement a monthly routine to read economic research of the different geographical areas where the trading algorithm suggest investing in.
Another way to grow internally is to take the action needed to get the Corporate Capabilities that most probably will be needed for a successful company in five year tenor. Underneath, there is the list of the ones we have identified:
- Capability to predict the timing of the financial market.
- Capacity to determine the differences in fair value of diverse global markets.
- Ability to communicate the results of the trading algorithm to the investor’s community.
- Expertise in online marketing.
- Expert interacting on Social Networks.
At the time of planning the actions needed for the aforementioned objectives, we have established our Organisational Strategy, mainly based on two pillars. On the one hand, establish organisation of the work by sharing tasks between the different members of the team according to their capabilities. On the other, and in the longer term, plan a rotation of the members of the team in the different rolls in order to give them the opportunity to gain experience in the whole business chain.
The Financial Strategies and the achievements that we want to get with all the former is to have a 5 years performance that is better than 85% of the Global funds in Spain and to launch an investment fund in 3 years tenor with an Asset Under Management of 15MM in five years.
This report was writen during 2018-2019 by:
Luis Soldevilla Moreno
Juan Soldevilla Moreno
Belén Soldevilla Moreno
Isabel Soldevilla Moreno
Guzmán Soldevilla Diego (coordinator)