Business stratigies

 

What Is Business Strategy?

A business strategy is the combination of all the decisions taken and actions performed by the business to accomplish business goals and to secure a competitive position in the market.

It is the backbone of the business as it is the roadmap which leads to the desired goals. Any fault in this roadmap can result in the business getting lost in the crowd of overwhelming competitors.

Importance of Business Strategy

A business objective without a strategy is just a dream. It is no less than a gamble if you enter into the market without a well-planned strategy.

With the increase in the competition, the importance of business strategy is becoming apparent and there’s a huge increase in the types of business strategies used by the businesses. Here are five reasons why a strategy is necessary for your business.

  • Planning: Business strategy is a part of a business plan. While the business plan sets the goals and objectives, the strategy gives you a way to fulfil those goals. It is a plan to reach where you intend to.
  • Strengths and Weaknesses: Most of the times, you get to know about your real strengths and weaknesses while formulating a strategy. Moreover, it also helps you capitalise on what you’re good at and use that to overshadow your weaknesses (or eliminate them).
  • Efficiency and Effectiveness: When every step is planned, every resource is allocated, and everyone knows what is to be done, business activities become more efficient and effective automatically.
  • Competitive Advantage: A business strategy focuses on capitalising on the strengths of the business and using it as a competitive advantage to position the brand in a unique way. This gives an identity to business and makes it unique in the eyes of the customer.
  • Control: It also decides the path to be followed and interim goals to be achieved. This makes it easy to control the activities and see if they are going as planned.. 

Strategic Uses of IT in Business

Information technology plays an important role in delivering value for a business and supporting organizational transformation. To achieve that, chief information officers have become key members of board teams developing and delivering strategic solutions for the business. The aim is to make an organization more competitive by aligning business strategy with IT strategy.

 Support Innovation

 Organizations that want to improve their innovation capabilities and develop new products or services for the market can use cloud computing to speed up the process. Cloud computing      enables organizations to rent additional IT resources during the development project on a pay-       as-you-go basis, rather than investing in fixed resources. Organizations can use the additional       resources to run pilot programs or speed up development. This provides an important strategic advantage by enabling the organization to get new products to market quickly, ahead of the competition.

 Improve Responsiveness

 Cloud computing enables organizations to scale up their IT resources quickly in response to changing market conditions. Organizations that offer products and services online may find it difficult to handle a surge in traffic, which could result in lost business. Adding resources from the cloud provides a strategic advantage by enabling them to respond to changes in demand, increase revenue and maintain customer satisfaction.

 Increase Collaboration

 IT solutions that improve collaboration in an organization can provide an important competitive advantage. Issuing field service teams with smartphones, for example, enables service engineers to provide a faster, more efficient service to customers. Engineers working on a customer site can set up voice or video conference calls with product or technical experts at headquarters to discuss and resolve a complex issue, rather than delaying a repair. Offering customer superior service provides a strategic advantage by differentiating an organization from competitors.

 Enhance Customer Insight

 Collecting and analyzing data to gain greater insight into customers’ needs and preferences provides a strategic advantage. By using powerful analytics software, organizations can develop customized offers and personalized communications that help to increase customer satisfaction and foster loyalty.

 Introduce New Business Models

 Organizations can use IT to make strategic changes to their business models. A company that traditionally sold products through retail outlets might use IT to develop an e-commerce model that enables it to reach a wider market, reduce its distribution costs and offer a more convenient service to customers

 

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