In the business world, what is most paramount is gaining profit. Where this is not achieved, that means you have failed to apply some business rules and strategies. In this article, we will uncover some strategy levels, examples, jobs as well as an insightful overview of what business strategy entails.
What is Business Strategy
Business strategy is any course of action or set of decisions that assist business owners to achieve their set goals. It is an indispensable tool to grow a business. The business strategy allows owners to outline successful their business will be in a competitive market. Business strategy equips top executives with a unified structure, to identify, analyse and utilise profitable opportunities.
Meanwhile, For the purpose of enhancing the company’s market position, a business strategy is a blending of proactive efforts on the part of executives.
Importance Of Business Strategy
The importance of business strategy cannot be overemphasized. Any business objective without a strategy is just a nightmare. Starting up a business without a well-planned strategy is like a gambling game.
Moreover, there is nothing good as planning before taking action. This help businesses to thrive well. If you have ever asked yourself why most businesses fail after few years of existence, You should also remember this adage that says that ”failing to plan is planning to fail”. Below is the importance of business strategy.
- Business strategy Increases Efficiency & Effectiveness
- It helps in planning and controlling
- It improves strengths & weaknesses
- Increases competitive advantage
Elements Of A Business Strategy
#1. Mission and Vision Statement
This is the main focus of a good business strategy. They are created to fulfil a business objective. Moreover, It gives clear instructions of what and how things are to be done. The vision statement is the future of the business. It focuses on tomorrow and what the organization wants to become. The mission statement drives the business. It focuses on today and what the organization does.
#2. Core Values
These are guiding principles that dictate performance. It helps people understand the discrepancy between right and wrong. Core values also help companies to determine if they are on the right path to fulfilling their goals by generating a consistent guide.
#3. SWOT
SWOT is an acronym for strengths, weaknesses, opportunities, and threats of a business. It is a rundown study of the company’s present situation. However, It is a necessary element of a business strategy its primary aim is to help organizations develop full information of all the factors involved in making a business decision.
10 Business Strategy Examples
A business strategy is a thoughtful plan that helps a business to achieve a long-standing vision and mission. However, different businesses have different goals. Thus, they take different ways to fulfil those goals. Therefore, these ways constitute the business strategies. Below are examples of business strategy that will help you compete in the market.
#. Most innovative product or service
Many companies, particularly in the technology or automotive space, are distinguishing themselves by creating the most cutting-edge products. In order to use this example as your business strategy, you will need to define what “innovative” will mean for your organization.
#1. Sustainability
A sustainable business strategy intends to positively impact your business. It provides participants with the knowledge and tools to become purpose-driven business leaders.
#2. Cross-sell more products
This type of business strategy involves encouraging customers to purchase a product that complements the goods they’re already buying. For example, if someone purchases a new phone, you can as well offer them a sim card you also sell to go with it. Therefore, by increasing the amount of product sold per customer, you can increase the average cart size.
#3. Increase sales from new products
Another example of business strategy is Growing of sales from a new product. This occurs from result of in-depth research to meet up with trends in the market. Many companies prefer to invest in research and development so that they can constantly innovate, even with your most thriving products in the market.
#4. Improve customer service
Customers are the heart of every business. Therefore they should always be your top priority. If your customers are happy, they can help build credibility and bring in more increase in business. From my own point of view, about 80% of customers are likely to promote and recommend a company to a friend if they have a positive experience. Henceforth, using this strategy, focus on keeping your customers happy. I bet you for yielding results.
#5. Cornering a Fledging market
large companies are merging competitors to corner a young market. Acquiring a new company allows a larger company to compete in a market where it didn’t previously have a strong presence while retaining the users of the product or service.
#6. Product differentiation
This is a business/marketing strategy that encourages the consumer to choose one brand or product over another in a congested field of competitors. Moreover, It identifies the qualities that set one product apart from other similar products. These differences are used to drive consumer choice. For example, Apple differentiated its smartphone operating system iOS by making it really simple compared to Android.
#7. Pricing strategies
Most companies use pricing strategy to price their products or services. This is done base the price of their products and services on production, labor and advertising expenses to determine their profit.
Some cmpanies may choose either keep their prices low to attract more customers or tag their prices them beyond what most ordinary customers could afford. If companies plan to keep their prices low, they will need to sell a higher volume of products, because their profit margins are low. Also, for companies who keeps price their products above the reach of ordinary customers, they only maintain the exclusivity of their product while keeping a large profit margin per product. Although there are customers who would likely go for a high price products as long as they are good to go with the quality.
Read Also: Pricing Strategies: Top 7 Examples of Pricing Strategies
#8. Technological advantage
Adopting a technological advantage is a good example of business strategy. This can give you better sales, improved productivity as well as market control. This can mean investing in research, development acquiring skilled employees that will give the company a technological advantage.
#9. Improve customer retention
Generally, it is easier to retain a customer than spend money to attract a new one. One way you can actually retain them is by building trust with them. How does it sound to you when i mentioned ” Building a Trust”. Let what say concerning your products be true. Once your promising notes are true, it is your customers that will sell and promote your products.
Buying The Competition
Don’t be scared of buying the market competition. Facebook is a typical example of this strategy. His strategy has been successful ever since the company was launched. It focuses on buying the pioneer or the competition instead of creating the technology of its own to compete with it. So far there have been many striking takeovers by Facebook like Instagram, Whatsapp as well as Oculus. This is to increase its reach and user base.
Business Strategy Levels
A business-level strategy incorporates a company’s policies, goals, and actions with the focus on how to deliver value to customers while maintaining a competitive advantage.
Business strategy level determines your position in your industry as well as the direction of your profits. It will also affect the efficiency of how you are able to serve your customer base. The best approach will integrate several types of business-level strategy. Howbeit, before you go into these levels of business strategy, the questions below should be your key points.
They include:
- What is it that your target customers value the most? (I.e., cost savings, brand prestige, product quality, etc.)
- Are you targeting a broad-range or niche market?
- What are your resources?
- What differentiates you from the competition?
- Does your business have the capability to lead and sustain itself in the marketplace in terms of product quality and competitive pricing?
One way to gain perspective is to put yourself in your customer’s position. For example, when shopping for clothing, which types of brands do you purchase from? How do you rank the importance of the pricing, material and manufacturing quality, environmental impacts, brand identity, etc.? Compare this perspective to that of your target customers’ and see how it aligns with your marketing initiative and business resources.
Once you are done with the above information, you’ll be able to figure out which of the following business-level strategy will be effective for you.
- Corporate level strategy: This level answers the question of what you want to achieve. You decide if it is growth, stability, or deduction.
- Business unit level strategy: This level concentrates on how you’re going to compete. You will also determine if it will be through customer intimacy, product differentiation or market pricing?
- Market level strategy: This business strategy level focuses on how you’re going to grow. This question cuts across market diversification, development, product or service development, as well as penetration.
Read Also: Corporate Level Strategy- All you need to know (+ examples, Definition and Types)
Business Strategy Jobs
Business Strategy jobs are available on different companies and platforms. However, to avail yourself of a business job strategy, you need a bachelor’s or master’s degree in marketing, business, communications, or a relevant field. Although, some employers prefer applicants with experience in branding, marketing, or in a leadership position. Meanwhile, individuals seeking a business strategy jobs can work in position listed below.
- Strategy & Operations Analyst
- Operations Associate, Business Manager, Production Supervisor and more.
- Head Of Marketing
- Head Corporate Planning/Strategy
- Content Strategy & Business Development
Conclusion
Business strategy is nothing but a master plan implemented by the management of a company to secure a competitive position in the market. Indeed, it consists set of guiding principles or rules, that defines the actions that business owners should adopt or not. It also describes things they should prioritize in other to achieve their desired goal. Business strategy jobs is not an all comers affair. It requires a skilled personnel.
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