COST UNIQUENESS
In general, there are two types of competitive advantage a firm can pursue: low cost or uniqueness. Using a low-cost strategy, a firm simply tries to have lower costs than the marginal producer in the industry. With the uniqueness strategy, a firm tries to persuade customers to pay more. A uniqueness strategy usually entails offering …. Read More
STRATEGY
When you think about strategy, what comes to mind? Let’s address what strategy is and what role it plays in your business. Kenneth Andrews, a famous strategist who had a book in 1971, called The Concept of Corporate Strategy, defined strategy as this; “strategy is the pattern of decisions in a company that determines and …. Read More
SUSTAINABILITY – THE KEY TO YOUR BUSINESSES FUTURE
What does Sustainability mean to you? Sustainability for me is crucial as it determines an essential part of the productive ecosystem overlooked by many businesses. In the long-run, Sustainability determines the quality of revenue and returns companies will be able to garner. Sustainability demands that companies pay attention to doing well profit-wise and making a …. Read More
Is Your Business Profit Sustainable
Many business owners inadvertently focus on the profitability of their company in a moment and not Strategies to ensure that profits are sustainable over time. These are basically two conditions that define sustainability; The first is for companies that make and sell products, physical goods typically, while the second is for companies that provide services …. Read More
Difference Between A Business Plan And A Business Model
The business model is the mechanism through which the company generates its profit while the business plan is a document presenting the company’s strategy and expected financial performance for the years to come.As you can see, the business model is at the center of the business plan.For example, the business model for Microsoft was to …. Read More
The Strategist’s Challenge
The strategist’s major challenge is to simultaneously manage three critical factors: VALUES, OPPORTUNITIES and CAPABILITIES. VALUES refer to the mission and scope of the organization; how this organization sees and defines itself. One way to analyse a firm’s values or its missions is to look at its mission statements. Most publicly traded companies have these …. Read More
What is Strategic Analysis?
How does one assess a business strategy? We define strategic analysis as the assessment of an organization’s current competitive position and the identification of valuable competitive positions in the future and how to achieve them. First, strategic analysis is done from a generalist perspective. By this I mean, we cross the functional boundaries of the …. Read More
The Role of Strategy
Strategy must be created across 3 major areas in every organization – The Corporate Level The Business Unit Level The Functional Level THE CORPORATE LEVEL This is the highest and most broad level of strategy in business. This deals with high level concerns such as defining the vision, clarifying objects, and setting goals. Creating and …. Read More