Business Strategies To Gain Competitive Advantages

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Competitive Advantage

Adopting a viable business strategy is a sure-fire way to improving odds of success. However, devising a good plan is not enough. Strategy execution is undoubtedly a real ball of wax. According to a Harvard Business Review study, the majority of Chief Executive Officers face considerable challenges when it comes to implementation.

For execution to work, the strategy should be communicated meaningfully with the entire team. Laying out the plan digitally can be the most effective way to inform the team. When every team member is well-informed, they are better placed to accomplish their individual roles. In addition, they will be empowered with detailed information to solve challenges more creatively.

Using digital platforms allows organizations to ensure clarity as regards the resources to be deployed in addition to operational priorities. In some cases, it is necessary to reassign teams to priority tasks, which may mean putting other projects on hold.

Hot To Gain Competitive Advantages

An effective strategy places emphasis on the specific needs of a target audience. Organizations that identify and satisfy the needs of target audiences more effectively find it easy to gain a competitive advantage. Simply operating at the same level as the competition is not enough. The delivery of superior services or products that serves specific consumer needs is the ultimate goal of an effective business strategy.

Another key aspect is determining the ideal price for a particular product or service. The final decision is guided by a variety of factors, including market dynamics and the organization’s strategy. The competitive position that an entity wants to achieve also plays a key role in determining the right price. Additionally, the weight of its brand image can make a huge difference in this regard.

A business strategy should aim to make the organization the best in various operational aspects. From offering the best price and superior quality to easier access and best service, entities have to find a viable way to stand out from the crowd.

Developing Growth Strategies

Growing a business to achieve higher revenue and a greater market share requires the formulation of an effective growth strategy. The ideal blueprint yields considerable results from the least effort and risk. The initial stages of a growth strategy presents minimal risk but are characterized by slower growth impact. As an organization moves up the ladder, it faces higher growth potential. However, the higher levels come with considerable risk.

Market penetration occurs at the lower levels that entail increasing sales volumes to existing customers. Companies usually maximize sales by bundling products to increase volume. For instance, a beverages firm may only offer medium to larger packs as a way to encourage customers to buy more items. The entity may offer 12- and 24-pack options as opposed to 6-pack variants.

In some cases, the growth strategies at these initial stages may also be used to find ways to increase utility of products. Turning baking soda into a product designed to work as a deodorizer for refrigerators is a good example of market penetration strategies.

The next stage involves market development. Companies face the challenge of increase sales volumes by exploring an adjacent market. Many organizations achieve this objective by opening branches in other towns or states. Some expand operations by adopting the franchising model

Final Thoughts

In the end, growth strategies cannot be implemented in a vacuum. Businesses must be prepared to embrace flexibility by being responsive to customer feedback. New market developments may also necessitate changing course. This can happen when an organization takes a long time developing or implementing the strategy.

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