Planning
A business strategy is part of a business plan. While a business plan sets goals and objectives, a strategy gives you a way to accomplish those goals. It's a plan to get where you want to go.
Strengths Weaknesses
More often than not, you get to know your true strengths and weaknesses list of colombia whatsapp phone numbers by formulating a strategy. Moreover, it also helps you capitalize on what you are good at and use it to overshadow your weaknesses (or why not, eliminate them).
Efficient Effectiveness
When every step is planned, all resources are allocated, and everyone knows what needs to be done, business activities automatically become more efficient and effective.
Competitive Advantage
A business strategy focuses on capitalizing on the strengths of the business and using it as a competitive advantage to position the brand in a unique way. This gives the company an identity and makes it unique in the eyes of the customer.
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It also decides the path to follow and the intermediate objectives to be achieved. This makes it easier to control activities and see if they are going according to plan.
How to define a business strategy?
Components of a business strategy
There are six (6) key components of a business strategy. They include:
Business vision and objectives
Core values
SWOT Analysis
Tactic
Resource allocation plan
Measurement
DOWNLOAD – SWOT template (in Word) and SWOT (in Power Point)
1. Vision and business objectives
Business strategy is meant to help you achieve your business goals. With a vision of the business direction, you can create clear instructions in the business strategy about what needs to be done and who is responsible for it.
2. Core values
Business strategy guides senior executives, as well as departments, on what to do and what not to do, in accordance with the organization's core values.
3. SWOT analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis is included in all business strategies as it allows the company to rely on its strengths and use them as an advantage. It also informs the company of any weaknesses or threats.
4. Tactics
Many business strategies articulate operational details on how work should be done to maximize efficiency. The people responsible for the tactics understand what needs to be done, which saves time and effort.
5. Resource allocation plan
A business strategy includes where you will find the resources needed to complete the plan, how the resources are allocated, and who is responsible for doing so.
6. Measurement
The business strategy also includes a way to track the company's output, assessing how it is performing against the goals that were set before the strategy was launched.
How to define a business strategy?
10 examples of business strategy
Here are 10 examples of great business strategies.
Cross-selling more products
Most innovative product or service
Increase sales of new products
Improve customer service
Cornering a young market
Product differentiation
Pricing strategies
Technological advantage
Improve customer retention
Sustainability
1. Cross-sell more products
Some organizations focus on selling more products to the same customer. This strategy works well for office supply companies and banks, as well as online retailers.
By increasing the amount of product sold per customer, you can increase the average cart size. Even a small increase in cart size can have a significant impact on profitability, without having to spend money to acquire more new customers.
2. Most innovative product or service
Many companies, especially in the technology or automotive sectors, excel at creating cutting-edge products. To use this as your business strategy, you will need to define what “innovative” means to your organization or how you are innovative.
3. Increase sales of new products
Some companies like to invest in research and development to constantly innovate, even with their most successful products.
4. Improve customer service
This can be a good business strategy if your company has struggled to provide quality customer service.
Some companies have even built a solid reputation for providing exceptional customer service.
Typically, businesses have a problem in a specific area, so a business strategy that focuses on improving customer service will typically focus its objectives on something like online support or a more effective call center.
5. Corner a young market
Some large companies are buying or merging competitors to corner a young market. This is a common strategy used by Fortune 500 companies to gain an advantage in a new or rapidly growing market.
Acquiring a new company allows a larger company to compete in a market in which it did not previously have a strong presence, while retaining users of the product or service.
6. Product differentiation
This is a common business strategy, especially for business-to-consumer (B2C) companies. They can differentiate their products by highlighting the fact that they have superior technology, features, pricing, or style.
7. Pricing strategies
When it comes to pricing, companies can keep their prices low to attract more customers or give their products an ambitious value by pricing them beyond what most average customers can afford.
If companies plan to keep their prices low, they will need to sell a much larger volume of products, as profit margins are typically very low.
For companies that choose to price their products beyond the reach of ordinary customers, they can maintain the exclusivity of their product while retaining a large profit margin per product.
