NILESH WAGHELA Business Strategy
BUSINESS STRATEGY
The Importance of Understanding Business Strategy Strategy helps companies to adopt a distinctive approach to competing in their industries.
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A company's success when implementing a business strategy is underpinned by its understanding of the market and the competition. Michael Porter, a recognised figure in corporate strategy thinking, has created various frameworks that explain how companies can outperform their competitors. Strategy helps companies to adopt a distinctive approach to competing in their industries.
The former is a dangerous path to tread, as it often leads to a situation where there are no real winners.
IMPLEMENTATION When embarking on the journey to find the right strategy and implement it, companies often grapple with one of two states: the desire to be the best (be ‘number one’) or the drive to be unique within the market. The former is a dangerous path to tread, as it often leads to a situation where there are no real winners. By desiring to be unique, a company can focus on meeting the needs of its target audience and reap the rewards through innovation and other measures.
FINANCIAL GOALS Hand in hand with business strategy is the need to set the right financial goals. A firm's core focus should be achieving long-term returns on capital investment, which translates to producing a product for a price greater than the cost it takes to create it. This is a much better goal to focus on than realising returns for shareholders.
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