Any business seeks to increase profits and stable growth of its enterprise. Each firm develops a development strategy that is aimed at finding and retaining the company's competitive advantages. There are different types of strategies and sets of measures to conquer the market.
Differentiation strategy
Quite an important measure aimed at the development of the company is the study of the consumer value of the proposed product or service. For this, the company conducts marketing research and studies the greatest customer demand. There is a constant search for ways aimed at the development of new directions in business, which are able to expand the range and provide a high level of service to their customers. Based on analytical data, the company seeks to improve the manufactured product and start producing new products in this industry. For the release of a new product, the company assesses its competence and the need of buyers for this product. There is also an intensified search for new sales markets and regional monitoring to identify potential consumers.
Cost minimization
One of the most popular steps in an enterprise strategy is to strive to achieve maximum cost savings. To do this, the efficiency of the employees is analyzed, and, if necessary, a decision is made to reduce the staff. There is a search for new technologies that ensure maximum production volumes with the help of modern technical equipment, and as a result of a decrease in the share of direct participation of the labor force in the production process.
Focusing principle
The company focuses on the maximum use of its competitive advantages in the work of the enterprise. At the same time, it seeks to minimize its activities in those areas that are most successfully developed by competitors. There is a conscious formation of activities in a certain segment of the market, where the company has no equal in terms of quality, service and innovation.
Integration strategy
Considering plans for the development of the company, the firm is looking for ways to expand the business through the integration of new structures. For this purpose, commercial objects are purchased and new branches of the enterprise are opened. In some cases, subsidiaries are created to expand the structure and increase supply. In other cases, agreements on joint cooperation are concluded with firms that provide intermediary services. This situation arises when an enterprise is not able to independently sell large volumes of products. This development model is typical for fairly strong companies that have achieved stability in their activities and have free circulation of funds.
