Meaning of Business Strategy
Business strategy means strategies which define activities that business needs to perform for attaining targets. It is simply defined as the long-term planning of business which shows the route to acquire desired goals and objectives set by it. Business strategy is served as a guide to business organizations which instructs them on how to acquire the desired position in the market.
These strategies are also termed as the master plan of management for reaching out to business goals. It consists of a series of actions and all decisions related to organization operations needed to secure a competitive position in an industry. These strategies tell business organizations how to allocate their resources efficiently and hire better employees.
Business strategy is an effective tool of business because in the absence of systematic planning there will be a lot of confusion and disorder which will make it difficult to attain objectives. It comprises of six main components which are: Business vision and objectives, its core values, tactics, resource allocation plan, SWOT analysis and a performance measurement method.
Examples of Business Strategy
Various examples of Business strategies are explained in points given below:-
Cross-selling is a technique of selling more products to existing customers of the business. While selling products to customers, salesperson recommends additional or complementary products to the one when they are already purchasing. They try to induce peoples for purchasing more of brand products. This method enables companies to raise their sales without incurring any additional expenditure.
Product differentiation means differentiating brand products from rest others available in the market. It means making products more appealing to attract the audience by adding unique features and qualities to it. Customers are motivated to purchase products by explaining the benefits of products over other products.
It refers to the selling of more products by business by offering them at average or low prices. Business tries to attract large customers by fixing low prices than the competitors for their products. They keep their profit margin low but focus on earning large revenues by selling products at cheap prices to the large volume of society.
Raising Sales Through New Products
Under this technique, the business aims at increasing its sales by introducing new products in the market. Companies incur huge expenditure on their research and development activities in an attempt to come up with new products. People like to use the newly launched products which assist in growing sales.
Customer retention means attempting to retain present customers for a longer period by serving them well. Business does need to spend huge expenses on finding new customers as they already have a large chain of present customers. They by satisfying their needs properly are able to retain them for a long time and earn large profits from them.
Introduction Innovative Products
It means coming up with the most advanced and innovative products to attract large sections of society. As per this business strategy, the business tries to keep itself ahead of other competitors in the market by working on innovation. They try to differentiate themselves from rest others by manufacturing cutting-edge products.
Sustainability means ensuring long term continuity of business by being cost-efficient and using eco-friendly measures. Business can increase their sustainability by implementing recycling programs and bringing down energy costs.