Business strategies are generally grouped into three categories. They are cost control, growth promotion and growth allocation. The three basic business strategies reflect three important business concepts that guide the conduct of a company. These concepts are Cost control, Sales Growth and Profit Growth.
What are the three basic business strategies? They are Sales Growth, Cost Control and Growth Promotion. In simple terms, Sales Growth is all about how sales are made by a company. On the other hand, Cost Control pertains to how costs are controlled throughout a process. Finally, Growth Promotion is all about how the company implements its sales, cost and business strategy in a manner to improve productivity, market share and customer satisfaction. Let’s discuss each of these strategies briefly.
Sales Growth Strategy A sales strategy is all about gaining a competitive advantage by creating a unique product or service that differentiates your product from similar products on the market place. So, what are the unique features of your product or service? What are the unique features of your product or service that other companies are not offering? What are the features that differentiate your company from other companies? These are some of the questions that you should ask yourself while formulating your business strategy. The answers to these questions will help you formulate a unique selling proposition that separates your product from similar products on the market place.
Cost Control Strategy The most important advantage of cost control strategies is the ability to control costs. This concept is often referred to as cost control or cost advantage. All companies try to have a low cost strategy. It is always important to create a low cost strategy so that you can have a competitive advantage over the other players in the market place. Basically, it is about controlling the cost of your products or services. Generic strategy does not offer any type of cost control.
Branding Strategy Marketing is the key to creating a competitive advantage. Marketing Strategies is very different from generic strategies. A brand strategy offers a unique positioning and marketing message for your product or service. For example, a cheap insurance company may use a generic strategy such as ‘cheap car insurance’, whereas an insurance company selling cheap car insurance through a brand strategy would be more distinguishable. In addition to this, a brand strategy also offers consistent branding across multiple channels.
Branding Investment Strategy One of the three basic business strategies that offers consistent branding across multiple channels is known as branding investment strategy. This is usually equated with cost control strategies. However, in this case, branding investment strategy makes the branding consistent across multiple channels. Therefore, it is a long term investment rather than a short term gain.
Low Cost Strategy This strategy can be defined as a low cost strategy, which offers the least amount of financial risk. This strategy is suitable for low priced, start up products or services. The low cost strategy is suitable when the product or service has a longer life expectancy than its competitor’s products or services. Furthermore, a low cost strategy is not appropriate for a growing market because it is difficult to make a profit and maintain customer loyalty.
Differentiation Focus The last two strategies – differentiation and cost leadership – are the most complex. Basically, differentiation requires building a product or service that delivers on a unique promise. The key here is to ensure that there is enough content on your site, and customer need for it, so that it is not effectively “duplicated”. In addition, differentiation requires finding ways to differentiate your offerings from similar offerings that are already being sold by your competitors. There are many factors that go into the differentiation focus in online marketing, but in this article we will focus on a few of the more prominent factors.