Want Your Business to Succeed? Execute an Effective Strategy
Successful businesses are built on the foundation of smart business strategies. Often in workplaces, we hear the term “business strategy” thrown around casually. But what exactly is business strategy? Is it some sort of revelation sent from the skies above? Let’s find out.
Have you ever thought about why a company performs exceptionally well while its competitor is always struggling to keep up? Or why some companies are excelling at their niche industry while the other companies find it hard to even make it out of the start-up phase? Well, all the answers lie in the business strategy. If a business wants to stay at the top of its game, it must create a well-thought strategy, and more importantly, it should execute the said strategy religiously. You don’t let go of your business strategy when you reach the top because retaining the top position is harder than getting to the top.
Let’s talk about the e-commerce giant Amazon. The reason behind their colossal success is that their strategy is linked with their vision. Amazon is the equivalent of a virtual shopping mall for today’s world. They are providing a seamless online shopping experience to users where they find, discover, and buy products in the most reliable manner. If Amazon gave up on its strategy after becoming the top e-Commerce marketplace, then the quality of its service would have declined thus resulting in a new company replacing Amazon sooner or later. It is the power of holding on to their business strategy that makes sure that Amazon stays in its throne.
What Makes a Good Business Strategy?
Good business strategy is a summarized version of your goals and how you plan to achieve them. It includes aim and objectives, the product or service you plan to provide, details about your target market, and identification of possible setbacks. It is a long-term vision that will help your business to reach the state you envision it, in the future.
For companies who are finding it hard to devise and execute a business strategy, here is a piece of advice by the man behind the world’s leading IT Solutions Studio, Al Tafseer solutions, Ismail I. Nakhuda (CEO):
“Create a step-by-step roadmap that lays out the plans you have for your company. Don’t let it sit in the drawer, instead use your formulated strategy to steer your business through the ups and downs. Once you master the art of keeping your strategy afloat, you will watch your business prosper”
Things to Consider When Developing Your Own Strategy:
Here are some tried and tested important points that will help you in developing a killer strategy for your business.
Clear, long-term objectives:
First and foremost, the step is to design a realistic long-term strategic plan. Starting from the basics, you need to know about the product/service you are building and how that product/service will help in tackling a certain problem. Next should be deciding your target audience, and which markets you will conquer. Lastly, what activities you will carry out to achieve the desired goals.
Your strategy will bear fruit once you seize an opportunity that decides the course of your future. It is important to keep an eye open to identify the potential opportunity that could evolve over time. After that, you need to gather relevant data and evidence before you come to a conclusion. Taking risks is important, but we are talking about calculated risks here. Carefully diagnose the possible challenges and their rectification before finalizing anything.
Your product or service needs to be unique with clear individuality. When Apple launched the iPod it was truly an innovative product. There was no such product in the market then. iPod paved the way for Apple and they have been unbeatable since then. Apple’s iPod may have discontinued but its other products continue to dominate the world, like the iPhone, MacBook and iPad etc.
Make sure that your strategy allows you to handle competition when you are entering a field with already established brands. If your product or service is truly a unique one, you capture the market share, establish your brand and strengthen your company in that marketplace, making it harder for any newcomers to challenge your presence.
Power of selling at a larger scale:
If you lower the cost of your product or service while remaining ahead of the curve, then you have a chance to earn higher profits by getting support from a large customer base. With unique features and remarkable customer service, you can easily buy a customer’s loyalty. When your after-sale service is good, then with the help of word-of-mouth you will achieve more customers hence reducing marketing cost.
Testing risks and failures:
Make a habit of periodically revising and updating your strategy to ensure its foresight. It is better to face failure when you’re still at an early stage. Use unique documented insights from your business’s success and failure to improve your business strategy.
Stakeholders and Employees:
Your employees and external stakeholders are more important than customers. After all, these are the people who will work towards achieving your goals. Sharing the business strategy within the people of your organization will provide them an idea and reasoning on the goals and objectives of the company. External stakeholders include industry analysts, investors, partners, and suppliers. These people will provide valuable insights that will help you in fine-tuning your designed business strategy.
How to Know If Your Strategy Is Ready?
A strategy becomes solid when all the expectations from the time of its creation have been validated and tested for maximum accuracy. When you have clear facts and evidence to support your decisions only then you can approve a strategy. Your strategy should align with the company’s objective, the nature of the business, and the business environment of your niche industry.
Let us take Google as an example. Google is the world’s most famous search engine which aims to provide a seamless internet experience to users. All the products and services later on introduced by Google aligns with its objective of improving overall user experience on the internet.
A good business strategy assists you in making the best business decisions. It tells you when and where you should spend money, which project is to be prioritized, and which product needs to be advertised to the target market.
Therefore, if you want your company to succeed, put in efforts to devise the best possible business strategy. With the smart execution of your strategy, you will be able to optimize your resources for better productivity and generate big profits.