Why consider the types of business strategies available to you? Well, a key part of setting up any business is clarifying the strategies that help you reach your goals.
Of course, the types of business strategies available for your company depend on the type of business you set up and the long-term goals of your company. By clarifying the options, you’ll have a clear direction to help inform many of your business decisions.
Read on to find out more….
What is a Business Strategy?
Your business strategy is your overarching framework for how you’re going to achieve your key aims, whether this is related to profitability or growth. Typically this means one of two things:
- Increasing revenue,
- Reducing costs.
In fact, pretty much every business decision relates to one of these core goals. Some of the key levers you can pull to do so include:
- Finding new customers,
- Increasing customer retention,
- Making processes more efficient,
- Improving productivity,
- Market positioning.
All different types of business strategies require you to come up with a specific framework for improving one or more of these areas of your business, whether this means moving into new markets, changing suppliers, or simply tidying up your brand image.
Let’s take a look in more detail at some of the more specific types of business strategies you’re likely to implement.
Types of Business Strategies: Online Strategies
Types of online business strategies differ because of your marketing approach. An eBusiness is an online business. That means you reach out to a global market using social media, a website and other online tools.
The key strategy to focus on with an online business is your content. Create content that helps your customers!
Focus on helpful information on a company blog or set up a store with a clear questions and answers page to help your customers navigate your products.
Search engine optimization is a critical digital marketing strategy. It focuses on driving traffic to your website and business through search engines. It also helps your products or your content stand out by getting to the first or second page when customers look for information.
With an online business, you also want to focus on a social media marketing strategy.
Social media marketing means you use different tools to connect to your customers. You want a high level of engagement to keep up with the changing goals and interests of potential customers.
Business Acquisition Strategies
Acquisition strategies are different methods to achieve growth. The way business growth strategies help with your company is the continued expansion into new areas. In an acquisition strategy, your company strives to acquire, or purchase, a smaller business.
You merge the businesses by purchasing the company and move into a new area.
The advantage of an acquisition strategy is the competitive advantage over the competition. You expand your business or obtain a useful product that helps your customers. The downside?
Initial costs. Acquiring a company or part of a company means you pay for the business.
That can, of course, add up to a high initial investment.
Types of Business Strategies: Price Skimming Strategies
Price skimming strategies work well when you innovate and create new products. This type of business strategy allows you to set a high price for your product when you first introduce it to your customers. Since the product is new, you do not have any competitors bringing down the prices.
That means you can set a price that helps you recoup any research, building costs and the costs of the materials.
The downside of price skimming strategies is the potential disinterest of your customers. A potential customer might hesitate to use a new product if they have an option that works well for their current needs.
This strategy works best when you have something completely new and innovative that catches the attention of potential customers.
If your product is an improvement on existing products, then you want to consider setting a slightly lower price to stay competitive.
Types of Business Strategies: International Strategies
The types of international strategy in business that fit your company goals depend on your situation. Taking a company global requires a strong domestic market and a certain level of brand awareness.
An international strategy focuses on the global market. You want a company to stand out on a large scale. That means your business must focus on the interests of multiple countries.
Focus on building up your brand name in your domestic market.
When you have a strong domestic brand, branch out to countries with strong ties to your country.
By focusing on a gradual approach that builds on your brand, you encourage people to gain interest in your company before you move into a new country.
You also want to focus on quality products that stand out from the crowd. A brand does well when it focuses on a specific target demographic. If you want to build an international company, you need a product that appeals to a global market.
Summary: Marketing for Business Growth
Once you’ve identified your business strategy, the types of marketing strategy for your business – again – depend on the company. The service industry for example differs significantly from the manufacturing industry, so you must focus on a strategy that works for your business.
The first consideration is what you sell to the public. Are you selling a product? You want to showcase the way your product works and improves your customer’s lives.
Are you selling a service? You must understand the service before you reach out to customers. In the service industry, you want to describe your business and your services in a way that appeals to customers and shows that they need your help.
Building up your business requires an effective strategy. When you want your company to grow and develop, you want to start with clarifying the strategies that work for your business. Use a strategy that fits your budget and helps you gain interest from potential customers.