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Definition of Business Strategy and Examples

Developing a business strategy is very important in running a business. A business strategy must have been formulated from the start of running a business, even before starting a business. So what is a business strategy? Now for those of you who don’t know the meaning of business strategy, here we will explain what a business strategy is and examples. Okay, just look at the discussion about the meaning of business strategy along with the following examples.

Understanding Business Strategy

Business strategy is a strategic approach, tactics and plans so that the business being carried out can achieve predetermined goals. In other words the meaning of business strategy is a series of decisions taken by business people to achieve their business goals. Each action must be integrated and not overlap. This is done to build a business advantage that is run in business competition. For this reason, it is very important for every business actor to develop and understand the business strategy he is running.

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Understanding Business Strategy According to Experts

The following are some explanations of the definition of business strategy according to experts:

According to Hariadi (2003), the notion of business strategy is a strategic plan that takes place at the divisional level which is intended to build and strengthen a competitive position in the company’s products and services in certain markets or industries served by the division.

According to Solihin (2012), that business strategy is not the same as strategy at the corporate level. The strategy at the business level focuses more on improving the competitive position of the company’s products and services in certain market segments.

According to Joewono (2012), that the definition of business strategy is a strategy to achieve a goal which is analogous to a chess strategy, where there is a systematic strategy of thinking, planning, alertness in stepping, courage in taking risks and passion to be able to win a game. These strategies are some of the characteristics in the game of chess that are relevant to business management practices.

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Example of Business Strategy

There are several examples of business strategies that can be taken to develop a business. Some examples of business strategies are as follows:

1. Identify the Target Market

Maybe you have a good quality product or service. However, if no one needs it all of it will not be able to make a profit. Therefore, in a business, recognizing the target market is very important. However, to understand who your target market is, you also need to position yourself as a consumer. At least, you think whether you need the product or service that you are offering.

This target market can be divided into several categories. For example, the target market is seen in terms of economic class, then it is divided into lower, middle and upper economies. Each class has its own character. It can also apply to other categories, such as age, education level, and gender.

2. Innovation and Creativity

The world is always changing, so is the taste of the market. What is popular today may not necessarily be popular in the future. So that the business can continue to run, it is necessary to make various innovations. With the innovations that you do, this will move your business to be able to move forward. Without innovation, it is very difficult to survive in an era that will continue to change.

To be able to innovate, of course you need something called creativity. But on the other hand, creativity must also be controlled properly. The innovations made must also be in line with changes that occur in the market. Therefore, you must be sensitive to the various changes that are happening.

3. Plan ahead

Without having a clear business plan, you will not be able to develop your business. But in making a business plan, you also have to know what to aim for. This goal can determine what the right plan to carry out is.

For example, if you want your food stall business to grow and have 2 new branches, then the plan you make must support that goal. What do you need to do in order to open 2 new branches? This is a fundamental question that must be answered when creating a business plan.

Even though a business plan is made using data, it cannot be completely separated from assumptions. In fact, assumptions do not always represent the reality that occurs in the field. So it’s best if a business plan is made in outline.

You don’t have to make a detailed plan with detailed steps. That’s because the conditions that occur in the field may be different from what you previously imagined. Therefore you must also be prepared to improvise.

4. Marketing Strategy

Maybe you have a high quality product. But if no one knows that the product really exists, then no one will buy it. In addition, regardless of the form of business, the name of the competitor will always be there. So in order for your business to stand out, you must have the right marketing strategy.

You can make a marketing strategy after determining the target market. With a target market profile with capital, you can find out what is currently attractive to that target market. This is what you then develop to design a marketing strategy.

There are several things that must be developed when making a marketing strategy. For example, namely the media used and the type of content. In addition, the way the message is delivered must also be adjusted to your target market. Look for the easiest and most attractive way to be accepted by your target market.

5. Take advantage of technology

By utilizing technology can increase efficiency. In addition, the use of the right technology will increase the effectiveness of the work. Through technology, repetitive processes can be automated. In marketing, technology can also help marketing reach a wider market.

Also read: Definition of Online Business and Examples

But so that the use of technology can be more optimal, then you make sure your business is well-systematic. A business can indeed be run without a business strategy, but without a business strategy, a business will be difficult to grow bigger. This is because it is a business strategy that can help determine the direction of business development.

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This is the explanation about business strategy definition and examples. Hopefully what we have written in the blog find this understanding useful.

4 comments for "Definition of Business Strategy and Examples"

  1. Business strategy is very necessary so that business activities that will be carried out or are currently running remain on the right track and in accordance with what has been previously planned.

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  2. To start a business then one must have a mature strategy, because with good preparation and a good strategy an entrepreneur will more easily understand the situation and be able to read the situation when experiencing bad things in his business.

    ReplyDelete
  3. business strategy is very necessary in today's modern era, thank you very much for helping.

    ReplyDelete
  4. Business strategy in today's era ia very important in doing business to achieve goals. Without a developed business strategy it will be very difficult to compete with other businesses.

    ReplyDelete