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Business Strategy Examples – Why Low Cost Leadership Is Important

by Jackson B
gawdo.com

Definition of business strategy is basically a long-term strategy designed for a particular purpose or target of targets and goals. It states how business is to be conducted in order to attain the targeted goals. A business strategy has many aspects and it is an important aspect in any business. Strategy planning plays an important role in businesses. If you are running a business or are managing a business, strategy planning is very necessary.

There are different types of business strategies. A management strategy could be defined as a set of strategies to control the resources. It could also include other factors like an investment strategy, an expansion strategy, and a forecasting strategy. These strategies can be used to lower the cost of production, raising the profit margin, maintaining customer loyalty, reducing financial risk, and changing business processes.

There are several methods to arrive at a business strategy or business model. Management training classes could be taken up by an organization to learn the different methods and the techniques that could be adopted. Management books and staff time spent studying these concepts can go a long way. Analyzing the existing structure and looking into the future could also be a great idea. Changes may have to be made in the business models and the business strategy may need to be changed accordingly. All of these changes need to be made based on the resources available and the implications these changes will have on business.

A business strategy can be defined as a set of marketing principles, aims, and actions, developed with an eye to satisfying a customer’s needs and aspirations. Marketing principles help define business strategy. The essence of a business strategy is to satisfy customer needs and aspirations. Customer satisfaction is paramount. A company needs to make its products and services popular among customers if it wants to stay ahead in the market. A company’s business strategy is therefore geared towards ensuring that it keeps the attention of customers.

In business-level strategy examples, the focus is mainly on making products and services popular amongst the customers. Since these products and services are not mass manufactured, they have to be customized and developed to a great extent. A good strategy should therefore make its presence felt at both the customer and business levels. This can be done by keeping in constant touch with the customers, by giving them the reasons to buy from you, by maintaining an excellent reputation in the market, etc. A company’s product or service must therefore be differentiated from the rest.

By identifying what sets you apart from your competitors, a differentiation strategy helps you cut costs by bringing about increased productivity. By creating a unique selling proposition, you can improve customer retention and profitability. In business-level strategy examples, this means getting the most out of your product. Cutting costs by increasing productivity is therefore a very important aspect.

A business strategy could also be based on providing a niche service or product. A niche business is one where the product or service you provide is unique. This is because it caters to a very specific need or category of people. For instance, the car industry could identify that their target market is younger drivers, men in their thirties, men in their forties or women in their fifties. By catering to their needs, they will not only increase their profits by getting more business, but they will also be able to keep their customers loyal because their offerings are something which is of relevance to their age group.

A business strategy could also incorporate production costs in the overall picture. Cost leadership strategy is related to making sure that the company maximizes its profit and spends the least possible amount on production costs. A cost leadership strategy should therefore identify where the company should set its production costs and how it should monitor the business expenses.

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