A business strategy is a set of planned tactics, or steps, that ensure a successful business. A strategy must be carefully planned and executed in order to achieve a desired goal. Starting a new business or advancing a company to the next level is no different. A strategy is the direction one must take to reach the desired goal and tactics are steps that need to be taken to travel in the right direction. Almost all businesses have five strategies in common – marketing strategy, product strategy, pricing strategy, financial strategy, and operational strategy. It is imperative that entrepreneurs take time to research and create a strategic business plan with all of the steps included and stretching your business forward.
1. Marketing Strategy
Marketing strategy targets a desired audience and designs advertisements aimed at that particular audience. This strategy also involves researching similar businesses, their products and /or services, and their advertising methods. Companies can use this information to outshine the competitor’s advertisements, products, and services. Today, one of the most popular, as well as successful, marketing strategies is social media, in all its forums and platforms, on the internet.
2. Product Strategy
A product strategy’s main goal is to offer and provide better products and /or services than the leading competitors do. This type of strategy also requires a lot of research and data gathering. A dealer of organic foods may choose to plug the fact that all of their products are made with certified organic ingredients while many of the competitors’ products are not. The department or people responsible for detailing the marketing strategy are also responsible for constantly and consistently creating and designing newer and better products.
3. Pricing Strategy
Pricing strategy does not always involve simply having the lowest price on the market. There are companies that employ high price tactics because they believe that people consider high priced items to be of the best quality. A tactic that is often used within this strategy is at the opposite end of the spectrum. The initial prices of products are high, but the business will offer discount, rebates, free shipping, and advertise closeout sales.
4. Financial Strategy
Financial strategy is important for business growth or expansion. Many companies do not have the funds in the beginning to promote growth within the business, but continue to grow at an exponential rate. This is because the company has a well-planned financial strategy.
A successful business will have a number of investors, but it cannot depend upon them for expansion. The financial strategy details earned income, the number of investors, and reserve funds.
5. Operational Strategy
Operational strategy includes a set of tactics aimed at creating higher profits while lowering production costs. This can include purchasing and installing better manufacturing equipment and the best technology such as computers, software, and hardware. It may also include opening a location close to the target audience or obtaining products from a less expensive source.
The internet is an excellent resource to plan and implement aspects of all of these strategies. It is one of, if not the, best tools for businesses today. Companies are able to research target consumers and competitors on the internet quickly and efficiently. Social media forums are one of the best methods for this research, marketing and advertising products, and attracting new investors.
