Growth is essential for any business. After the turbulent times that most businesses faced during these past two years, the biggest challenge is to find effective tools that can help business strategies in 2023 and beyond. Luckily, we have put together this list of tools that do just that.
Porter’s Generic Strategy
According to Michael Porter generic strategies are a group of 3 categories of competitive strategy that can help a business flourish:
- Cost Leadership Strategy: This strategy focuses on gaining an advantage over your competitors based on costs. Reducing the operating costs will automatically let your business charge lower prices. There are varied methods to establish this strategy, such as outsourcing, reducing production waste, carefully handling logistics, spending less on labor and materials, and introducing new technologies to speed up processes and prevent errors.
- Differentiation Strategy: Offer a unique product or service than your competitors. You can differentiate what you provide in terms of functionality, appearance, durability, quality, operational efficiency, or any other exclusive factor.
- Focus Strategy: Focus on the particular needs of customers and target a niche market to help drive sales forward
Almost everyone in the business world is aware of SWOT Analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT is often used by management to analyze what is best for the company and devise successful strategies to help businesses build a bright future. SWOT considers both internal and external factors, addresses weaknesses, discovers and prevents threats from competitors, and creates specific business models using the company’s available resources and capabilities.
Mintzberg’s 5 Ps of Strategy
Henry Mintzberg, a management guru, introduced the 5 Ps of strategy—plan, ploy, pattern, position, and perspective—-which can help you develop your own business strategies. Let’s look at them a little more closely:
- Plan: Making a plan is the least expensive but very effective in the long run. Planning increases profitability and decreases risk.
- Ploy: Businesses can get ahead by using marketing tactics against their competitors to gain market share and awareness among their ideal customers.
- Pattern: Patterning is all about concentrating on successful behaviors that have worked best in the past. This strategy involves an organization putting effort into and considering their day-to-day tasks in running their business.
- Position: Positioning refers to how a brand places itself in a market environment and how it presents itself to its customers to attain a competitive advantage. Brands should take into account their core values, strengths, and quality of products and services to determine their niche in the industry.
- Perspective: The organization itself creates this strategy by considering how the customers perceive the company, how the employees feel about the management, and the views of the investors.
Mintzberg’s 5 Ps will help your company make strategic decisions.
Building a corporate strategy isn’t easy and if you’re not sure where to start, you don’t have to do it alone. StealthEnomics is there to help you with hard work, proper planning, and flexibility so that you can succeed. Get in touch today!