How to choose an enterprise strategy
Video: Strategy and Culture - The Secret Ingredient for Successful Enterprise Strategy 2024, July
The success of the market in many respects depends on what strategy the company will choose at the beginning of its activity. Only clearly following the right direction, you can achieve your goals.
Instruction manual
1
Analyze the external environment. These include the activities of your market competitors, consumer demands and attitudes towards your product, the mood of partners, investors, shareholders, etc. The more specific information you have, the more likely you will not be mistaken when choosing a strategy.
2
Carry out a SWOT analysis. It involves identifying the strengths and weaknesses of your organization and the opportunities and threats to the enterprise based on them. When you have a clear picture of the real situation, you will be able to more rationally approach the choice of strategy.
3
If, as a result of the analysis, it turned out that the success of your organization is largely dependent on competitors, pay attention to a strategy that involves leadership in costs. Here you must minimize the cost of production, storage and transportation of goods. Then you can offer your product at lower prices than your competitors. This is how the problems of a highly competitive market are solved.
4
Choose a growth strategy if market conditions currently contribute to this. For example, this is possible when serious threats are not expected, and you can offer an interesting and unique product that differs significantly from those already on the market. Moreover, you can not only start production of new products as part of this strategy, but also enter new markets with an existing product. When choosing this strategy, be prepared to invest in marketing and advertising.
5
Choose a reduction strategy if the analysis showed that the sale of the product does not bring the proper profit and has no prospects. If you see that the business is deprived of the future, you should reduce to a minimum all the costs of manufacturing the goods and wages and direct all efforts to marketing existing products. This strategy is called "harvesting."
