Business strategy of the company or how to take your place in the future?
Strategy is what you spend your time and resources on! The company always has a strategy, even if the owner and the top team have never thought about it. The company’s strategy is meaningful or based on the principle that what has grown has grown.
- Each owner chooses the development option for his business himself:
- Spontaneous development, as a momentary reaction to changes in the external environment
Conscious development aimed at achieving strategic goals.
The essence of the business strategy
There are many definitions of a business strategy. However, there is an important point that unites different definitions.
From the perspective of customers/potential buyers, there are 3 options:
Option 1. Your company has a competitive advantage
Option 2. Your competitors have a competitive advantage
Option 3. In the eyes of customers, competitors and your company are
In the case of option 3, tough price competition arises, since in this сase, only price can distinguish the company in the eyes of potential
The business strategy is aimed at identifying and realizing the company’s
long-term competitive advantages.
The creation of a business strategy involves the CHOICE of interrelated decisions/answers that the manager makes, answering the following questions:
A. What products does the company produce?
B. What problems do these products solve for potential buyers?
C. What problems from this list does your company best solve?
D. What groups of target clients can be carriers of these problems?
E. What will consistently differentiate the company and its products
from other companies in the eyes of the target audience?
F. What is the idea of positioning the company?
G. What should be the organizational structure of a company to produce
these products and create sustainable concrete benefits?
H. How will the company make money?
The strategy is always based on the choice of decisions that will determine the future of the company. Finding them requires creativity
and new perspectives. You need to go beyond the usual framework of ideas about your markets, customers, needs, etc. It’s always difficult!
In an abundance of goods and services, a company has 3 options for existence:
- Be like everyone else.
- Be the best of them all.
- Be yourself.
What do you choose.?!