The company's success in the market largely depends on what strategy the company chooses at the beginning of its activity. Only by clearly following the correct direction, you can achieve your goals.
Instructions
Step 1
Analyze the external environment. This can include the activities of your competitors in the market, consumer needs and attitudes towards your product, the mood of partners, investors, shareholders, etc. The more specific information you have, the more chances you will have of making a mistake when choosing a strategy.
Step 2
Conduct a SWOT analysis. It involves identifying the strengths and weaknesses of your organization and the opportunities and threats based on them. When you have a clear picture of the real state of affairs, you will be able to more rationally approach the choice of strategy.
Step 3
If, as a result of the analyzes carried out, it turns out that the success of your organization is largely dependent on competitors, look for a strategy of cost leadership. Here you must minimize the costs of production, storage and transportation of goods. Then you will be able to offer your product at lower prices than your competitors. This is how the problems of a highly competitive market are solved.
Step 4
Choose a growth strategy if current market conditions are conducive to this. For example, this is possible when no serious threats are foreseen, and you can offer an interesting and unique product that is significantly different from those already on the market. Moreover, you can not only start releasing new products within the framework of this strategy, but also enter new markets with an existing product. When choosing this strategy, be prepared to invest in marketing and advertising.
Step 5
Opt for a reduction strategy if the analysis indicates that the sale of the product does not bring the required profit and does not have prospects. If you see that the business has no future, you should reduce to a minimum all the costs of manufacturing goods and wages and direct all your efforts to the sale of existing products. This strategy is called “harvesting”.
