A strategy is the framework required to achieve specific business goals. If the business does not make necessary adjustments in its strategy from time to time, then its profitability will be compromised because other businesses would have a sliver of your market share. It is imperative to revise your business strategy every decade, so that new ideas could be incorporated into the business.
When formulating a business strategy, the senior management should keep these 4 things into consideration.
Customer Experience
Customers have now become more powerful; an unsatisfied customer can cost you millions if he posts a negative comment about your product on social media. For this reason companies should be more focused and attached to their customers. Enhancing the customer experience should be a priority of senior management and should also be included in the strategy draft of the business.
Communication
If you have a great business strategy that not only benefits the company but also the society and environment, then make sure that your customers know it. Your website and social media platforms should be used to communicate this message to your customers. This would positively position your product in the minds of your loyal and potential customers.
Opt for the Blue Ocean
Most of any company’s strategies are centered on competing with their competitors, but as a business you must focus on making competition irrelevant. A business that does not have any direct competitors are said to be operating in the blue ocean, while a industry where there is a cut throat competition among businesses are said to be operating in the red ocean. Some examples of blue ocean firms are Google, Cirque Du Soleil etc.
Scenario Analysis and Business Modeling
Before you make your business’s strategy, you must perform a rigorous scenario analysis as well as business and economic modeling. This would help you plan your way forward in the case of any adverse scenario.