What is a business strategy? Every business needs to have strategies and strategies are directions for the short or long term success or operations of the business. Every business must have competitive strategies in order to survive. A good business will need good strategies in order to compete against competitors. Business strategies are also there to meet market needs and investors’ needs. Often the mission statements include the company’s strategies.
Strategies will include long term direction, markets, advantage, resources, environment, and stakeholders. Each business will need long term direction. They will need to determine the type of market that they will enter. They will need strategies to out-compete their competitors. They will need to determine recourses to meet their business requirements. They will need to determine environmental factors that will affect their abilities to compete. They will also need to know the values and expectation of their stakeholders.
Strategies exist on the operational level, corporate level, and business unit level. There are evaluating criteria to help shape business strategies. Pest analysis is one of them; it’s a technique for understanding the environment that a business operates in. scenario planning is a technique that views several possible futures outcome for a business. Five forces analysis is a technique that identifies five forces that affect competition in an industry. Market segmentation understands the similarities and differences between groups of customers and users.
Directional policy matrix is when it summarizes the strength of a business operation in a specific market. Competitor analysis is a technique that summarizes a business’s overall competitive position. Critical success factor analysis is a technique that identifies those areas in which a business must perform better than their competitors in order to succeed. Swot analysis summarizes that key issues of internal and external influences. Business strategy is important because every boat needs a map, you have to know where you will go or else you won’t land there. If you don’t have one, it’s time to develop one. Busines strategies are probably one of the most important aspects of your business because it will shape your business and drive it forward.