Do you know how to come up with competitive, successful business strategies for your company as a management? As the world changes constantly and unpredictably, competitive strategies are of great significance to the survival of a company among fierce competition, because the fact remains that every organization in a certain industry works hard to satisfy their customs as well as possible. In the Futurics article” Business Strategy”, Vu (2007) focuses his attention on essential features of a successful strategy and methods of developing and maintaining a competitive advantage. Vu’s conclusion of competitive business strategies associated with dynamic and flexibility, the comparison between the resource-based view and the industrial organization …show more content…
Vu states that if a company wants to be a lead among its competitors, it is expected to recognize its competitive advantages and underlying competitive advantages. Obviously, realizing self-merits enables corporations to know its market position generally in a specific industry. What is more, it is also a chance for firms to see its demerits when compared with others. Only when a company finds out what could unseat its contemporary strength and where is the advantage tomorrow, it is able to alter its business strategy so that the company can maintain adequate competence along with the variation of economic situation all the time. Exactly, “An organization’s competence is the key to good or poor performance and to survival.”(Johnson and Scholes, 2002, p149).
All in all, there is no denying that being able to come up with a successful business strategy, management should consider various factors, like the flexibility of a strategy, two different views of capturing competitive advantages, and the significance of competitive advantages. Vu’s article does good job detailing different aspects of a good business strategy. As managements become more aware of how to develop business strategies, the economy will boost
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition. (13th Ed.). Boston, MA: McGraw-Hill/Irwin. ISBN-13: 9780078029295
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Business institutes are in front of stirring and dynamic challenges in the 21st century. In the globalised business, Texas Chicken requires strategic ideas and only by developing good corporate strategies can they become deliberately competitive. A sustained or sustainable cutthroat advantage occurs when compact implements a value – constructing strategy of which other companies are incapable to duplicate the benefits or find it too pricey to initiate. Texas Chicken corporate strategy includes the commitments, decisions and actions required for a firm to achieve deliberate competitiveness and produce above average returns. Business Corporate Strategy Strategic management is basically required for every business and it proffer several benefits.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
Hitt, M., Ireland, R. & Hoskisson, R. (2010).Strategic Management: Competitive and Globalization, Concept and Cases. Mason, Ohio: Cengage Learning
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
There are a variety of challenges that firms may face when attempting to be the best in their specified industry. Economic and political challenges can make it difficult for companies to maintain a competitive advantage. In addition to maintaining a competitive advantage, some firms also find difficulty in keeping its branding alive and by attracting customers as their strategies, products, and management change over the course of time. Industries such as the automotive industry, healthcare industry, retail industry, and many more experience a variety of challenges based on their competition. Firms must create successful strategies in order to maintain competitive with their competition and in order to gain advantages in their industry (Hitt, 2013).
Depending on each business’ unique characteristics and, importantly, their preferred outcomes, business strategies are of different types. Similarly, business strategies are also dependent on the structure and function of an organization.
Strategy evaluation is an attempt to look beyond the obvious facts regarding the short-term health of a business and appraise instead those more fundamental factors and trends that govern success in the chosen field of endeavor. Strategy can also be defined as a set of objectives, policies and plans that, taken together, define the scope of the enterprise and its approach to survival and success. Alternatively, we could say that the particular policies, plans, and objectives of a business express its strategy for coping with a complex competitive environment. A good business strategy can be broadly categorized into functions like consistency, consonance, advantage, and feasibility.
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
Valdani, E., and Arbore, A., 2013. Competitive Strategies: Managing the Present, Imagining the Future. Palgrave Macmillan.
Before starting any business you should consider its objectives, in order to develop a strategy. It is the strategy that lays out how the objectives will be achieved and determines deadlines for achieving them. If and when the goals are reached the business will be successful.