When a business entity is well articulated and driven towards the expected direction, it amounts to a business strategy. In other words, a business strategy entails the process of formulating and implementing the set objectives in the most articulate manner. Therefore, there are various elements that support a business strategy.
For instance, an excellent business strategy does not lead to unhealthy competition. It should be unique in nature. In addition, it should embark on delivering the diverse tastes and preferences of customers without conflicting with the prevailing market competition (Kourdi 76). At this point, it is vital to mention that aspiration should not be misconstrued with strategy. For instance, to become the best supplier of electronic products is simply an objective and not a strategy.
A business strategy that has been adequately formulated defines the goal or specific objectives of a business entity. The limits for attaining the set goals are also outlined in a business strategy. A good business strategy should clearly define the purpose and needs of the business. It should be appreciated that a thoughtful process is requited when formulating a functional business strategy.
It also demands flexibility and a balanced approach so that the actual purpose and need of the business are clearly outlined (Stonehouse and Houston 103). The ability of a business entity to attain purpose and need is largely dependent on adequate information of the targeted market.
For example, the needs of customers should be given top priority when designing the end products. In addition, the purpose of products and services that have been availed in the market should be put into consideration when formulating a business strategy (Kourdi 76).
Due to the modern and dynamic market, it is vital for a business strategy to be relatively flexible so that it can conform to the myriads of changes in the business world. A strategy should allow space for modification on a regular basis because a static strategy may fail to be progressive. In a nutshell, some of the overall elements that should be addressed by an excellent business strategy include:
- The main aspirations and purpose of a business entity
- The channel that has been chosen for purpose of growth
- The core reasons for choosing the given channels
- The methods for executing the strategies
- Modes of sensing, monitoring and adjusting changes
A case study of Dell Inc. reveals a vivid competitive advantage that the company has enjoyed for several years (Hill and Jones 149). The computer manufacturing company has successfully managed to meet the individual tastes and preferences of its customers by manufacturing computer products according to the specifications of their individual clients.
When customers place their orders at the company, they are also supposed to include their product preferences in terms of color, size, and even design. These specifications are then used to model the actual end products in the factory.
Dell’s business strategy is clearly evident at this point bearing in mind that the company has managed to meet the separate needs of customers without disrupting competition in the market. Moreover, the element of uniqueness has been brought out clearly since there is no other computer manufacturer who is customizing products for consumers (Hill and Jones 149).
To recap it all, it is vital to reiterate that an excellent business strategy should be in a position to meet the market demand and the intended purpose. When a business strategy is well formulated, it leads to a viable competitive advantage.
Hill, Charles and Gareth, Jones. Strategic Management: An Integrated Approach: Theory. Mason, OH: Cengage Learning, 2010. Print.
Kourdi, Jeremy. Business Strategy: A Guide to Taking Your Business Forward. London: Profile Books Ltd, 2009. Print.
Stonehouse, George and Bill, Houston. Business Strategy. Oxford: Heinemann, 2002. Print.