A company is a structure or organization that positions itself on constantly changing markets. Consequently, it must determine the axes of development of its activities according to the context. The purpose of the strategy is to implement these axes. Three different strategies can help a business grow.
The cost leadership strategy
Before developing a business strategy, it is important to know that there are 3 main axes for the development of activities: first of all, you can decide to bet on the growth of these; or, one can resort to maintaining one or more activities at their current level. stabilizing the business. Apart from that, we can decide to abandon certain activities to refocus on others. Cost leadership is one of the development strategies to implement these axes. In fact, it is a question of reducing fixed and variable costs as much as possible. Thus, the company will be able to offer products to the market at lower prices than those of competitors. To do this, this strategy consists of revising supply costs; production costs: reduce them without losing quality and distribution costs.
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The differentiation strategy: The differentiation strategy is also a very effective development strategy. As its name suggests, it is for the company to seek to stand out from what its competitors offer in order to appear unique on the market. The whole thing being that in the eyes of the customers, the products will have to be different from the others offered. However, the advantage over competitors’ offers can be commercial, technical… In addition, to adapt to competition, a company can distinguish itself from others through technological innovations. These can further differentiate themselves from competing companies. Thus, the company no longer positions itself in relation to its competitors but seeks to bring new value propositions to its customers.
Developing a business strategy means globally analyzing the opportunities to be seized in a given environment and implementing the means to achieve the goals set accordingly. Because of this, cooperation might be the best option rather than going head-to-head with competitors. This other development strategy leads to cooperating with them so that everyone can benefit from it. Cooperation will allow everyone to specialize in an activity and to cooperate with other companies in the same sector of activity. Common forms of cooperation are sub-contracting, licensing and concession.
Support for entrepreneurs: Supporting entrepreneurs is the cornerstone of a winning strategy to promote entrepreneurship. It must not only facilitate their access to financing for the creation and development of their businesses, but also train them in order to acquire an entrepreneurial culture. Because you don’t become an entrepreneur overnight. It is a long process.