Business strategy: how many types are there and how to choose the best one for your business

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Specifically, it guides organizational decision-making to prevent costly errors as much as possible.

Keep reading, below is all the information you need!

What is a business strategy?
These are the 3 levels of a business strategy
Why is a trading strategy important?
6 examples of business strategy
What is a business strategy?
Business strategy can be understood as the course of action or set of moj database decisions that help entrepreneurs achieve specific business objectives that have been planned in advance.

In other words, it is nothing more than a master plan implemented by a company's management to ensure a competitive position in the market, carry out its operations, please customers and achieve the desired business goals.

Since we are talking about business, it is extremely important here because it is the long-term projection of the desired image, direction and destiny of the organization. It is a scheme of corporate intention and action, carefully planned and flexibly designed with the purpose of:

achieve effectiveness;
perceive and take advantage of opportunities;
mobilize resources;
ensure a good competitive advantage;
address the challenges and threats presented by the market;
direct the efforts and behavior of work teams;
maintain control in the face of a potentially problematic situation.
In short, business strategy encompasses a set of competitive moves and actions to attract customers, compete successfully, strengthen performance and achieve organizational goals. It describes how business should be conducted successfully to achieve desired ends.

It also seeks to equip senior management with an integrated framework to discover, analyze and exploit beneficial opportunities, to detect and confront potential threats, to make optimal use of resources and strengths, to counteract weaknesses, among many other actions.

Nature of business strategy
A business strategy is a combination of proactive actions by management aimed at improving the company's market position, overall performance and reactions to unexpected developments and new market conditions.

Generally speaking, the techniques that are carried out in each of the companies are the result of commercial actions and approaches initiated previously, but when market conditions take an unexpected turn, businesses require a strategic reaction to deal with contingencies.

Hence, in the face of unforeseen developments in situations, part of the business strategy is formulated as a reasoned response.

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These are the 3 levels of a business strategy
This concept does not stop here, it is very broad and is divided into 3 levels:

Corporate level
A corporate-level business strategy is a long-range organizational plan that is fully oriented towards the actions to be taken; it is formulated and designed by the company's executives.

This first case is carried out mainly for:

detail the lines of business, expansion and growth;
seek acquisitions and mergers;
focus on diversification, integration;
find new areas of investment and divestment,
Business level
This second level is entirely related to business and is particularly developed by general managers, who convert the mission and vision into concrete strategies.

In simple words, it is a blueprint of the entire business framework that must be done to be successful in the overall business strategy.

Functional level
In this case, it is a business strategy that is designed by those who are in charge on the front line, whether they are managers or supervisors.

Therefore, this process involves making mostly operational decisions about the functional areas of each department, such as sales, marketing, manufacturing, human resources, administration, finance, among others.

Why is a trading strategy important?
There are several reasons why a business strategy is important for organizations, including:

Planning : Helps identify key steps to take to achieve business objectives.
Strengths and Weaknesses : The process of creating a business tactic allows you to determine and evaluate the company's strengths and weaknesses so that you can design a strategy that optimizes its strengths and compensates for or eliminates its weaknesses.
Efficiency : It allows you to allocate resources effectively for business activities, which automatically makes you more efficient. It also helps you plan ahead for deadlines, assign work roles, and stay on track with project goals.
Control : on the choice of types of activities that will directly help you achieve your goals, and also encourages easy evaluation of each activity and whether they are effective enough.
Competitive Advantage : By identifying a clear plan on how you will achieve the best for the organization, you can focus on capitalizing on strengths, using them as a competitive advantage that makes the company unique in the marketplace.
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6 examples of business strategy
As you can imagine, there are multiple ways to develop a business strategy, so here are 6 of the most notable ones that can help your business.

1. Cross-selling
Have you ever thought about selling accessory products to your customers? That is, not just selling the main product. This is known as "cross-selling" and companies like Apple have been able to implement it perfectly.

After all, when you buy an iPad or iPhone, you're always going to be offered an accessory product to complement your purchase, right?

And cross-selling works well for office supply companies and banks, as well as online retailers.

By increasing the number of products sold per customer, you can increase the average basket size. Even a small increase in your sales volume will have a differential impact on the profitability of your strategy, without having to spend money on onboarding new customers.

2. Most innovative product or service
Particularly in the technology and automotive sectors, they are known for creating the most cutting-edge products.

A clear example of this is in the tablet business, since they are all identical, what did Samsung do? They added a magnet to the back to hold the magnetic pen. As small as the detail is, it was a very innovative move in the market.

And let's not even mention what Tesla did with its cars with such advanced Artificial Intelligence and Machine Learning that they can drive themselves and are very safe.

3. Increase sales of new products
Investing in research and development to constantly innovate the products you already have, even the most successful ones, is a technique that is very effective.

This type of business strategy involves introducing new products into the market and updated products that can keep up with trends.

Don't forget that, at the end or during the project, you must interact with your target audience with effective Digital Marketing and Content Marketing .

This will ensure that you progressively capture valuable data to check the level of acceptance and what you can change along the way to reduce costs and increase effectiveness.

4. Improve customer service
We are in an era in which successful companies do not focus on the product, but on ensuring that the customer has the best possible experience with the brand; only with this balance will they achieve the desired competitiveness in such a changing market.

Some organizations have even built a strong reputation for having exceptional customer service. They usually have a problem in one specific area, so a business strategy that focuses on improving the ease with which the customer moves from one stage of the sale to the next will usually have goals that focus on things like online support or a more effective call center.

And finally, you should also offer an after-sales service to evaluate how your customers are responding to the product in order to identify areas for improvement and, with this, develop a new business strategy.

5. Youth market: Now more influential than ever!
Thanks to social media marketing, large companies are able to reach a larger and more consumer-driven target audience: young people .

Platforms like Facebook , Instagram and TikTok are just 3 examples that are making commercial strategies profitable, even organically — without spending a single cent on paid advertising.

On the other hand, there are also organizations that are buying or merging competitors to corner a young market. This is a common strategy used by Fortune 500 companies to gain an advantage in a new or fast-growing market.

Acquiring a new company allows a larger company to compete in a market in which it did not previously have a strong presence, while retaining users of the product or service.

6. Product differentiation
When we shop, we all want to feel special and have a unique, different and quality product. Isn't that true?

This is why product differentiation is a common business strategy, especially for B2Cs. They can modernize and give their products a distinct flavor by highlighting the fact that they have superior technology, features, pricing, or style than other brands doing exactly the same thing.