Business is a profit oriented action focusing on accumulation of wealth but by keeping its customer satisfied, branding its products, and achieving the competitive advantage. In this age of globalization, mere competition is a part of business while tackling this is a greater challenge. Today, if you want to gain competitive advantage, you should not only focus your product and customers, but have to develop some long term actions plans which are known as business strategy. Business strategy is strategic plans of any business which it undertakes to achieve the desired output for the long run.
Strategy in business means you should do something better than your competitors; you should find the reason why customer should choose your product ignoring others. Business focuses on different areas like production, distribution, marketing and many more. So, it depends on your skill how will you manipulate and develop your strategies to work in those areas. However, here are some of the best business strategies you can adopt in making your business best and competitive:
- Cost or price: Your business strategy should focus on reducing cost by emphasizing high productivity without compromising product quality and serve product in low price than its competitors.
- Quality: You should address the need of customers, designing the product accordingly, focusing on total quality management, reducing the defects at source, relying on effective feedback system and enhancing the quality of product than its competitors.
- Dependability: Dependability resides on product quality and delivery. It means every time a customer buys the product he should get the quality of product better than he had expected. Similarly, whenever company promises to deliver a product at specified time and date, customer is obliged to get the service on stipulated time. This should be considered by every business as a strategy.
- Flexibility: Business should be able to produce many products, different volumes of product at same per unit cost, and should be able to meet different delivery as per the desire, and demand of customers to get competitive advantages.
- Speed or time: Company should reduce the time gap between when an order is placed and when it is received by the customers.
- Product and service strategy: Product and service design should reflect the joint efforts of many areas of the firm to achieve a match between financial resources, operations capabilities, supply chain capabilities, and customer wants and needs.
- Location strategy: Location near inputs lower input cost whereas location near markets results in lower transportation cost and delivery time. So convenient location should be chosen.
- Layout and process strategy: Layout strategy should be clearly set up to ensure a smooth flow of work, material, and information through a system. Similarly, process strategy deals with pattern of decision made in managing processes with the aim of achieving competitive advantage.
- Internet marketing: Business can use online marketing efforts to address needs of smart people in cost effective and less effort which helps in achieving business strategy.
- Human Resource strategy: A company’s human resource policies should be consistent with its choice of technology, process, and quality strategies by focusing on training and personal development of the employees.
- You need to have an office that is easily accessible and that reflects the modern era. You need to keep it neat and tidy. You may contact the janitorial service every month, this will make your business life way much easier.
Hence above are the competitive weapons for the business in achieving competitive advantages in this global era. These business strategies defines how different components of the business will work together to achieve success. Any business focusing on these strategies can satisfy its customer, establish brand, and finally accumulate profit which is the ultimate goal of every business.