FAQ
A business strategy, in simple terms, is a documented plan on how an organisation is setting out to achieve their goals. A business strategy provides the guiding principles for many organizational decisions, such as hiring new employees, or developing new products.
There are several reasons why business strategy is important:
1. It helps to create vision for the whole organisation to follow.
2. It helps decision makers to identify trends and opportunities for for future growth.
3. With the help of strategy, business can understand how to allocate resources effective to meet their goals.
4. Every business has a set of strengths and weaknesses and companies can strategise in a way that optimises the former.
There are four primary types of business-level strategies Cost leadership, Differentiation, Focused low cost and Focused differentiation. Each of these strategies takes a different approach toward the same goal – creating, maximizing, and delivering value to customers to win more significant market share, higher profits, and long-term growth.