Friday, May 31, 2013

Vital in Getting Ahead of Competitors

Businesses need a business strategy to rise above their competitors. Formulating and planning the strategy for the business needs some goals as a basis though. Start with Some Goals In Mind It's very important that the business state its goals first. The business has to state its long term goal and short term goals as well. With that, a business strategy can be formulated. Strategies are formulated as to how such goals can be achieved. Setting goals should be given a timeframe. This way, the strategies formulated for each can be evaluated after such time. Goals should also be measurable so there would be a way to indicate whether strategies and implementation were effective. It's also important to keep the strategies up to date. If the business did not achieve its goal for a certain period, then the strategies need to be reviewed and adjusted. Markets also evolve and change, hence the need for updating strategies. Coming up with a Marketing Plan Completing a marketing plan is a very important part of formulating a business strategy. The marketing plan would contain a background of the business. More importantly, it would contain core marketing strategies for the business. Of course, strategies would generally be based on research and analysis. A list of strengths and weaknesses should be listed and analyzed. Opportunities and threats are also looked into if the business wants to be thorough. Financial Forecasts Included Well, this is usually included in the marketing plan as well. Financial forecasts should be included to assess how profitable the business is going to be or expected to be. Aside from that, it is from the financial forecasts that the business would know how to manage its finances and anticipate its cash flow, inventory and other financial matters. Business Strategy: Evaluation While the marketing plan is that important, checking how well the strategies did is really important if the business wants to achieve not only its short terms goals but also its long term goals. It is important that evaluation is done so strategies can bring the business ahead of its competitors. Looking at Your Business and Knowing Your Customers and Competitors The business strategy should not only be about the company. It should also look at what is happening in the market. The business must be conscious of what its competitors are doing so it can strategize on how to get ahead of them. For instance, a business could decide to pursue a price based strategy in order to get a lion's share of the market. On the other hand, one can also pursue a differentiation-based strategy. Again strategies should be based on what the company sees will bring it ahead of its competitors. But the other half it though is knowing the company customers. If the company knows its customers, well then it will be able to anticipate how it would react to every price change, for example, or how it will appreciate additional features. Of course, the decision on which strategies to take should always be based on the combination of all these factors. Again, the time frame and evaluation is important. Keeping the strategies updated is vital too.