Business strategies are the tactics that a company puts into action to implement a business plan that allows it to achieve certain previously defined objectives. Business strategy, then, guides the work of every company.
In this article we are going to talk about the concept of business strategy: a fundamental notion in any company. From SMEs to large companies, everyone must define one to scale their brand.
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Definition of business strategies
Business strategies are the set of techniques, methods and tactics that are executed with a view to meeting the planning goals of a company.
With the commercial objectives established, the business strategy aims to carry out the actions to obtain the proposed results for the short, medium and long term.
Objectives of the business strategy
Depending on its size and history, each business may set different goals to meet. In addition, there are other factors that influence such as the nature of the market to which it is dedicated or the phase of the market in which an article is found.
In this sense, designing business strategies focused on results allows you to draw a clear path of what steps you must follow to maintain growth, starting from the base where you are.
Let’s go on to see the main objectives that are sought to be achieved with a business strategy.
📣 Market Penetration
📈 Brand Growth
🥇 Industry leadership
🏁 Financial strength
market penetration
In the case of small businesses or companies that are just starting out, the primary objective is usually to begin to position themselves and enter the market niche they seek to dedicate themselves to.
In these cases, it is very common (and recommended) to develop an MVP, that is, the minimum viable product. This first version of the product to be marketed, with the fundamental attributes, those that are essential for basic operation.
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brand growth
This is one of the most common objectives because, whether it is taking its first steps or is consolidated, every brand seeks to continue growing.
The business strategy that is aimed at making it scale can refer to several specific goals. Some examples are:
- Offer more and more variety in your .
- Increase the size of the company.
- Have more impact on the market to which it belongs.
- Improve products or offers to specialize.
- Outperform the competition.
- Expand your borders into new geographic territories.
Industry leadership
With sustained growth, the time comes when the business strategy becomes aligned with the idea of being the maximum reference in a certain niche.
The reasons for being in this phase may be that you offer an excellent product, because of the age and trajectory of your company or because you find yourself hand in hand with your main competitor.
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Whatever the reason, companies that manage to position themselves as product leaders are always in a highly competitive environment. This means that they must develop increasingly robust business strategies to maintain it over time.
Financial strength
As a company grows and gains space in its market, it is necessary to ensure the economic benefit obtained. This is where the actions are oriented both to take care of profits and to promote economic stability.
Any company needs to ensure a minimum of financial strength to guarantee its continuity and favor its development.
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Business strategies: 3 examples
The time has come to see some specific cases to finish understanding these concepts and transfer them to your business.
Each example of business strategy will depend on the specific conditions and characteristics of the company. As we mentioned, circumstances such as its financial capacity, its age or its size will define which are the best techniques to apply.
cheap prices
In supermarkets such as Carrefour or Coto, we have the possibility of buying clothes, electrical appliances or household items for a lower value than in a specialized store.
In addition to these well-known companies, we can think of one that, by not having the expenses of a physical location, can offer competitive prices.
💡 If you have a place on the street, your business strategy to offer cheap prices may be aimed at creating an online store.
exclusive products
Also called “lock-in” in this business strategy, a product is marketed that is difficult to obtain or imitate by the competition. Here we are dealing with brands that have become so canonical that we almost confuse them with the product itself, such as Coca-Cola.
This tactic promotes strong customer loyalty in the long term since, not finding the item elsewhere, the consumer always goes to the same brand.
Another good example is Tiendanube. This brand targets its specific niche and part of its business strategy was to buy the original licenses of brands such as Disney, Friends or Harry Potter to offer unique products.
In this way, they achieve their exclusivity tactic by captivating the public that, without a doubt, has them as references when it comes to getting clothes with designs from popular programs, movies and games.
leadership in a market
Some good examples can be Apple, in technology, or Salomon, in mountaineering products. The value of the products is superior to those offered by other brands on the market and that allows us to design one with superior values.
To bring a local example, we want to mention the Tiendanube that created its own brand of toy bricks, until it managed to fulfill the dream of becoming the Rasti manufacturer in Argentina. This made them leaders within their market!
What did you think of this journey through the various business strategies, their objectives and examples? With a good business plan, your brand can scale significantly!
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