For every business, there are strategies that help it achieve its respective goals. A business without strategy makes it difficult to materialize objectives since there’s no clear direction where it is headed. Therefore, if you want your business to be successful, you need to employ the right business strategies. And in this guide, we’ll shed some light on the best examples of business strategies to do.
What is a business strategy?
A business strategy refers to the business’s high-level plan in attaining set objectives. It serves as guide for organizational decisions such as marketing strategies and hiring of employees. It consists of the specific actions and steps that a business must do to reach its goals.
The creation of business strategies requires thorough planning, consideration, and development. It involves all departments’ participation across the company to ensure everyone is on the same page towards respective goals.
The importance of having business strategies
A business without a strategy isn’t bound to meet success anytime soon. What use of any objectives is if there are no concrete plans on how to achieve them? There’s none at all. With that in mind, here are the reasons why all kinds of businesses should have well-thought-of strategies:
Business strategies are always a part of your business plans. Without these, all plans are just dreams since there are no action steps in attaining them. The business strategy allows you to have a goal towards whatever the business desires to have.
Strengths and weaknesses
When developing strategies, you become aware of the business’s existing strengths and weaknesses. This results in consideration for respective assets and flaws, which makes it easier to identify what the company should do. It can even eliminate the strengths with the right strategies.
A business strategy requires every step is planned, all resources are allocated, and everyone is aligned on necessary to-dos. Operations become more efficient and effective with the right business strategies.
Since everyone is aware of the business strategies, it is easier to control the necessary activities. Everybody can assess how close or far they are in achieving goals that drive them more to perform.
A business strategy lets you capitalize on the business’s strengths, making it stand out among competitors. When done correctly, it could make your business find its own identity and help you position your business to customers in a unique and remarkable way.
Key components of business strategies
Here are the components of a business strategy that makes it possible to achieve any business plans and objectives:
Mission, vision, and business objectives
These are the goals of the business in which the strategies will align to meet success. From here, you can start designing exact steps in your strategy to get the right results.
These refer to the dos and don’ts of all people involved from the top-level down to the bottom. These are the characteristics that everyone should embody in reaping success.
Shortened from the terms strengths, weaknesses, opportunities, and threats, SWOT analysis refers to the assessment of the current position of the business. It familiarizes you with the weaknesses to beware of and the strengths to capitalize on. This helps design the right strategy in making use of strengths more and trying to eliminate the weaknesses.
These refer to the in-depth understanding of operational details to come out with the best possible strategies. It is knowing exactly what needs to be done for improved efficiency and effective operations.
Resource allocation plan
A business strategy states where, how, and who will handle the resources’ procurement and allocation.
A business strategy must always have a way of tracking progress towards specific goals. Without any form of identifying and monitoring KPIs, you cannot assess where the business stands.
Steps to building an effective business strategy
Here are the proven ways to develop and execute effective business strategies:
Collect the facts.
Before anything else, the first thing you ought to do is gathering the facts surrounding your business. These include reviewing past performance and the current business position. You must look into this necessary information to determine what works well, what needs improvement, and what opportunities are there.
During this process, the SWOT analysis will be helpful. You must identify the strengths and weaknesses of the internal factors. At the same time, the opportunities and threats must center on external factors.
Involve the right people in gathering this information to ensure accuracy. This, after all, is the foundation of your projected business strategies.
Create the vision statement.
A vision statement is the projection of the future. It consists of your company’s aspirations in the medium or long term and describes the organization’s purpose and values in clear terms. It answers the question, “Where do we want to be in X years?”
Create the mission statement.
While the mission statement also defines the business purpose, it also sheds light on its primary objectives. This includes the short-term plans in materializing the long-term vision. In formulating the mission statement, these are the question that you must answer:
What is the business, and what does it do?
This is your business identity that serves as the value proposition to the target market. This one-liner should clearly define what your business is and what value it provides.
What problems do you solve?
This pertains to the definition of problems your business is striving to solve.
How do you do your business?
In this part, you must state a brief description of your products or services, including how they resolve the existing problems. You can even read some of the best books for entrepreneurs to take an inspiration.
Who are your customers?
So who is your business for? Identify your target market segments here by describing your ideal customers.
How are you different from your competitors?
State how better you are than your competitors and what unique thing you bring to the table.
Define your objectives
Defining a clear set of objectives keeps the organization aligned with the common goal. The lack of such concrete targets only results in a misalignment between departments. Poor targeting is like shooting in the dark; everyone’s all over the place, reaching for the unknown.
When the organization has clear objectives, the organization may create an integrated sales and marketing approach to meet the goals. Remember, these targets must be SMART—specific, measurable, achievable, realistic, and time-related. Also, these should include the KPI’s, resource allocation, and budget limitations.
Develop risk management plans.
By developing a comprehensive risk management strategy, businesses can minimize their exposure to potential risks and ensure the continuity of their operations.
This will help protect the business from financial losses, reputational damage, and other negative consequences associated with risk.
To reduce your risks, you can get finance assignment help from cwassignments.com. Risk management can include investing in insurance or risk management tools
and developing contingency plans to mitigate potential losses.
Lay out the plans.
Next is developing the strategic plan translating the objectives into more detailed short-term plans. The plans will consist of the necessary actions for all departments within the business.
In this stage, you are laying out the expectations from departments and communicating with them the necessary actions.
Execute strategies excellently.
All business strategies should be actionable. Here are some reminders to ensure the success of business strategy execution in the business:
- Keep your strategic action plan and track progress regularly.
- Encourage the common ownership of the plan across departments and team members.
- Use the set KPIs that are predictive and align directly with the strategic plan.
- Cascade the goals to everyone and help employees understand their roles in contributing to the goals.
- Schedule productive meetings every now and then to stay updated with everyone’s progress.
Implement performance management.
While the execution is still ongoing, you must continue reviewing the objectives and action plans regularly. This ensures that everything’s on track in goal achievement.
The managers will be assigned to the implementation of such performance management. This is a complex task that will challenge how the organization leaders will tackle the creation, management, and business strategy review. It requires them to collect only the relevant data, break down complex information, plan, prioritize, and maintain the strategic vision.
And that’s the systematic breakdown of building an effective business strategy for your organization. Keep these in mind as you develop your next business strategy to implement.
The examples of business strategies
Here is a list of the best examples of business strategies you could employ in your business.
1. Improve customer service.
You don’t need to have terrible customer service before investing in better quality customer service. Consumers are drawn to a business that provides excellent customer experience. With that said, you should start considering enriching your customer service department. Some great strategies include having streamlined service and more accessible platforms like social media and a 24/7 call center hotline.
2. Widen your product variety.
Sometimes you will find success when you offer a variety of choices. Too few products limit their options, making them consider other brands. That said, you can supply consumers what you think will satiate their wants and needs to generate more sales.
3. Do market penetration.
To increase market share, one of the best examples of business strategies is doing market penetration. Not only this gives you a target market, but it creates your brand identity of who you cater to. When you establish a name under that market, it’s easier to reach the rest of the segments.
4. Innovate your products or services.
Since this era dominates the market with technological advancements, your business should learn to ride the wave. Many businesses take pride in providing the most advanced technology-infused products or services, and you should too.
5. Show how unique your product is.
To convince consumers that your business is better from competitors, you need to state why it is unique. Your products must be able to highlight how it answers particular needs that only your product can do. These could come in features, technology, styles, designs, convenience, and more. Read more to learn unique business ideas to stand out.
6. Strategize your product pricing.
Pricing strategies are always good at attracting customers. You can lower prices to get more buyers. And in contrast, you can increase prices above the average to create aspirational value.
If you lower your prices, you need to rely on a vast volume of products to generate the required sales. Whereas, if you increase your prices, you can stick with a specific volume while maintaining product exclusivity. This creates a large profit margin for each product sold.
7. Boost customer retention.
It is way easier and cheaper to retain customers than to acquire new ones. If there is something to improve with how you deal with returning customers, it’s time to make those enhancements.
8. Promote sustainability.
One of the timeliest examples of business strategies at the moment is promoting sustainable development. These can be in the forms of energy reduction, cruelty-free products, or less carbon footprint through recycled materials, etc.
9. Try cost leadership.
This is a pricing strategy that competitively positions your brand in the market as the best-priced. You can lower the prices of a few products and cross-sell higher-end products to reap high-profit margins.
10. Place an e-commerce store.
Online businesses are booming right now. With 2.05 billion of active online shoppers in 2020, you can find success through online selling or dropshipping. You can either create your website, sell at online platforms, or make social media pages to sell online.
11. Capitalize on social media.
Social media is cheap but highly effective in marketing your products. It gives you online visibility to create awareness, reach the target market, and generate sales. You could employ several social media strategies in your business, and this online course will you ace them: Complete Social Media Marketing Course.
12. Look out for your site’s search engine optimization (SEO).
If you want to enrich your website, having it well-optimized will contribute to its SEO health. The better your content and backlinks are, the more likely your website is going to stay on top of the search engine results page when a relevant query relates to your products or brand.
SEO expands your site traffic, online visibility, and online reach. If you want a comprehensive tutorial on how you can boost your SEO efforts, this online course is your best choice, Search Engine Optimization Training for 2020: Master SEO.
If you need more examples of business strategies to incorporate with your organization, we have the perfect online course for you. Strategic Planning Skills will provide you heaps of powerful secrets in attaining any business objectives.
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