Strategic Approaches for Business Success

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Business

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Contents
Five major strategic approaches to set a business apart from its competitors. Major
considerations for sustainability, time management, evolving marketing conditions and
management response................................................................................................................3
Importance of vision, steps and coordination............................................................................4
Crucial factors involved in a company’s macro environment. There measurement tools
advantages and limitations.........................................................................................................4
Factors involved in evaluating a company’s resources, capabilities and competitiveness........5
Input each cost driver can have on cost control of an organisation...........................................5
References..................................................................................................................................7

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Five major strategic approaches to set a business apart from its competitors. Major
considerations for sustainability, time management, evolving marketing conditions and
management response
A business can set itself apart from its competitors by providing superior value to its
customers (Henry). There are a few basic strategies which can be used to generate
competitive advantage. One of these strategies is cost leadership. Under this strategy firms
generates cost advantage by lowering costs of operations (Bamford and West). This can be
done through bulk buying or cutting cost of transport, warehousing or superior production
techniques.
Second strategy is differentiation, wherein firms create some uniqueness in their products or
services (Evens). Differentiation can be created through creation of brand identity, better
quality or lower prices.
Under Innovation strategy companies find new ways of doing their business. They create new
products or product features (Bamford and West). Under operational efficiency strategy
companies use effective techniques of production and distribution to create competitive
advantage (Henry). Fifth strategy is technology based competitive strategy where companies
create competitive advantage through adopting new techniques of production, sales or
distribution.
Firms need to take into account certain considerations while formulating strategy. The major
consideration for sustainability is whether a business can cover its costs in the long term and
reduce waste and consumption of natural resources (Henry). Major considerations for time
management are setting of business goals, planning, control and evaluation.
Another consideration is evolving market conditions. Firms need to consider the various
changing factors like demand, demographics or economics (Hiriyappa). It also needs to
consider its own strengths to evolve with the evolving market conditions.
While creating the final realised strategy it is very important to get a positive response from
the management (Hiriyappa). Budget and manpower allocation by the management are major
considerations while seeking positive response.