Business strategy of the company: what it is

A company’s business strategy is a document that describes the company’s long-term development plan. Some people call this document a business plan. And, in fact, yes, in part, the points from the business plan—overlap with the points from the business strategy of the organization. Business strategy definition is the most important task. But nevertheless, business strategy is based on the company’s goals in the medium term (1-5 years) and long term (10-20-30 years), as well as the company’s mission.

In simpler terms, we can say that the strategy answers the question, “How?” How will the company achieve its goals? How will the organization reach sustainable profits and show long-term growth? What is business strategy—it is, in fact, a detailed plan of action. A roadmap from point “A” (the current situation) to point “B” (a bright future).

Types of business strategy

In business planning, it is common to divide the 4 main business strategies. You can find business strategy examples in our article. Let’s talk about them below.

Concentrated Growth Strategy

The concentrated growth strategy focuses on the company’s products, its improvement. This strategy recommends focusing on the development of products and services offered to the market.

According to this strategy, the company should work in several directions: development of internal regulations, improvement of production (reducing costs and operating losses). It is also useful to know its competitors and, periodically, conduct competitive intelligence. The business strategy model should be built according to a clear plan.

The strategy of integrated growth

This strategy is based on the development of the company in the external environment: opening new sales offices, expanding into new markets, “absorbing” competitor companies and the like.

A good example of an integrated growth strategy is the takeover of Instagram by Facebook, which at once gained access to an additional “fresh” audience, which can be monetized (start earning on it).

Diversified growth strategy

A diversified strategy for a business organization involves reducing risk. That is, as a rule, it is expressed in the development by the company of several directions at the same time, each of which may not be strongly related to the others. The best business strategy depends on your preparation.

Downsizing Strategy

But what if you realize that your company is operationally unprofitable and not generating the amount of profit that would cover all costs? In this case, a strategy of reducing and optimizing production inventory can help.

In the context of this strategy, to reduce everything that does not directly affect profit (inefficient employees, unprofitable areas of the organization, advertising channels are out of control and eating an impermissibly large budget, and much more). Downsizing is hard, but very often this painful step allows you to weather the “storm” and optimize your company, making it stronger and ready for new challenges.

5 business development tactics

In business development, there are a number of tools, the use of which will help achieve success for 99.9% of companies (for the 0.1% of companies, only some of the tools will work). What tools we are talking about – I’ll tell you about below.

There are 5 basic tactics in business development

We, when working with clients on the promotion of their companies, usually advise to implement the following basic set of actions for the development of their business:

  •  Development of a selling website (surprisingly, many companies that come to us for promotion – still no company website. Website – this is what any company should have, regardless of its size and profit margins);
  • Contextual and / or targeting advertising (in almost all areas of business you can successfully get clients from contextual advertising: from the promotion of martial arts club, to crushed stone quarry);
  • SEO-blogging (SEO-blogging allows to receive a big stream of the target traffic, by means of writing and optimization of articles on a site for key queries);
  • Attendance at industry conferences and events;
  • Personalization (in marketing, sales and customer relations).