Business strategies: what are they, objectives and benefits

One of the most important things we have to take into account when launching our product to the market is our business strategy. However, in the marketing world there’s so much information going around that many times it’s extremely difficult to understand what a business strategy is and how we can implement it in our own project. 

If this is your case, don’t worry, you’ve come to the right place. Whether you are just starting your business or you already have a track record, there are always new challenges in need of a good strategy. 

Today we are going to talk about business strategies: what are they? What are their objectives? What kind of strategies can we implement in our business? These are some of the questions we will be answering below. Let’s get started!

What is a business strategy?

When we talk about business strategies we refer to the set of techniques, methods and tactics necessary to meet the objectives of any business. 

Any company has monthly, quarterly and annual objectives. Now, setting objectives seems simple, but achieving them? To meet those objectives it’s necessary to set strategies that help us achieve them: that planning are the business strategies, those actions necessary to obtain the desired results in the short, medium and long term. 

What are the objectives of a business strategy?

As we’ve seen, business strategies are based on certain objectives. However, the objectives can vary greatly according to our business model, our trajectory, etc. Let’s look at some of the most common objectives that business strategies seek to achieve. 

Market penetration 

This is the main objective sought by companies that are just starting out. If this is your case, all the business strategies you propose should be thought of in pursuit of this overall objective. Some examples of strategies for this objective may be to offer competitive prices or develop a minimum viable product to test the market segment in which we want to penetrate. 

Company growth

Once we’ve managed to penetrate the market and establish ourselves as a company, one of the biggest challenges that comes up is how can we make it grow?  At this point there are several strategies that can be carried out in order to make our business scale and everything will depend on the specific features of each project. Some of these strategies can be: expanding the product or service catalog, specializing in a specific product or looking for new markets, for example, expanding our geographical scope. 

Industry leadership

Another common objective when companies have been growing steadily for some time is to position themselves as leaders in a given sector. This is perhaps one of the most difficult challenges and where business strategies must be strong enough to be sustained over time. In many cases these strategies require large investments, for example, in advertising. 

Benefits of having a business strategy

The main benefit of having a clear business strategy is that it allows us to move forward with a direction. That is, it allows us to have a clear notion of the path we are taking and make better decisions step by step. 

The business strategy helps us to: 

• Take advantage of the best opportunities.

• Be aware of possible threats and take action.

• Respond quickly and clearly to any problems that may arise. 

• Know our company and our potential customers better.  

• Allocate resources better. 

There are many advantages, aren’t there? Surely there are many more that we are forgetting right now, but what we want to make clear is that there is no way to grow a business if we do not take into account what our goal is and what actions we must take to meet the objective in question.

Tips for creating your own business strategy

Now that you know the benefits of having a business strategy, let’s review some tips so you can start planning your own strategy. 

First of all, we suggest that you do an analysis of the current situation of your business. A SWOT analysis can be very helpful to understand what your strengths, weaknesses, opportunities and threats are. 

With this clear picture, you will be able to think about which objective you should pursue according to the current situation of your business. Remember to set your SMART objectives! That way you will be much more likely to achieve them. Divide your goals into short, medium and long term so you don’t get overwhelmed in the process. 

Then, it’s up to you to translate those goals into specific plans. Here we advise you to choose only the short-term goals. Remember, it’s all about taking it one step at a time. Now think about what actions need to happen for those objectives to be met, write them all down and give them a deadline!

Now it’s your turn. Let’s get to work! Tell us … Do you have a strategy for your business? We’ll read you in the comments!