Shalom Lamm, the real estate developer from Long Island believes in companies having solid business strategies to be successful.
What is a Business Strategy?
Most business leaders agree that a business strategy is a plan or outline to achieve their goals and objectives. The strategy defines how the business can proceed in its decision-making process and larger companies with multiple departments help ensure departmental decisions are unified around the central goals.
Why is a Business Strategy Important?
One of the essential functions of a business strategy is to define the business planning process, and how it will proceed. Another is an analysis of the strengths and weaknesses of the business. By capitalizing on the strengths of a company, a business can make the most profit.
And by focusing on the weaknesses, businesses can proceed to either concentrate resources on building up those weaknesses or admitting that this is a lesser part of their strategy and abandoning certain projects.
Understanding a business’s strength also outlines its competitive advantage in the marketplace.
Also, as you develop clear business strategies, it gets easier to analyze successes and failures.
Components of a Business Strategy
Realize that this is just one opinion but some business experts like Shalom Lamm define a business strategy as having six fundamental components:
- Creating the business objectives and defining the goals
- Identifying the company’s core values
- Strength and Weaknesses, opportunities and threats analysis
- Business tactics
- A plan for allocating resources
- Various measurement techniques to define progress
Ultimately, your strategy is a unified business plan for how you will proceed as well as how you will decide to pivot if the results turn out to not be favorable.
What are Some Examples of a Business Strategy?
- Deciding on a pricing strategy
Either to be the low-price leader or to price at a premium
- Obtaining a technological advantage
A technological advantage can help corner the market for a long time.
- Multiple selling of products
By having a wide range of products at different prices, you differentiate yourself from companies that only have one or two products.
- Expanding your marketing budget significantly to grow new customers
- Concentrating on customer service
If you are perceived as having great customer service, a company can often overtake other companies with better products but poor customer service.
Don’t Be Stuck With a Strategy However
Sometimes the problem is the wrong strategies themselves. If strategies do not serve you, be ready to abandon them. Unfortunately, many companies are quick to create their business strategies and slow to abandon them.
Realize that the market is changing all the time. Technology advances such as the cloud in computer storage and the advent of social media everywhere mean that a company has to be nimble to change.