There are generally 3 Types of Business Strategies: Organizational (Corporate) Strategy – A corporate-level strategy focuses on high-level decisions that affect the market in which the company competes. Thinking from a company’s point of view, suppose a firm wants to manufacture cheap mobile phones. The business strategy guides top-level executives as well as departments about what should and should not be done, according to the organization's core values. Each strategy involves a different approach to trying to build efficiency across nations while remaining responsive to variations in … For companies who choose to price their products beyond the reach of ordinary customers, they are able to maintain the exclusivity of their product while retaining a large profit margin per product. You can build the strategy for your small business by arranging operations so they fit existing market conditions. Figure 1: Bartlett and Ghoshal’s Typology of Multinational Companies: This kind of strategy is concerned with making improvements to business functions that support business and corporate strategy.Functional strategy include IT strategy, marketing strategy, IT strategy, human resources strategy, and operations. Besides vital decisions like Marketing, budgeting, Sales forecasting, and business expansions are based on the choice and implementation of the strategy. Some of the types of corporate level strategies are as follows:- In the context of growth strategies, there are two types of diversification. The strategies are geared to three purposes: those related to decreasing production costs and increasing efficiency. In the case of a service industry, a major player would be Air Asia, a low-cost Asian flight operator which operates only in Asia at a very low cost. There are several reasons why a business strategy is important for organizations, including: Related: Understanding the Basics of Strategy Development. Choosing the best e-business strategy for … This also involves high cost of production per unit but it can be easily recovered from the above average pricing of the product. Looking to Hire? Together these two factors generate four types of strategies that internationally operating businesses can pursue: Multidomestic, Global, Transnational and International strategies. There are several business strategy types available and each has unique characteristics. Left with no choice, the small business will then look at what it currently has, right where it currently is. Defensive . A functional strategy refers to a strategy that emphasizes a particular functional area of an organization. An example of horizontal integration would be Apple entering the search-engine market or … The following are common types of business strategy. When it comes to pricing, businesses can either keep their prices low to attract more customers or give their products aspirational value by pricing them beyond what most ordinary customers could afford. Grow shareholder value: The top goal of your organization may be to increase the value of your organization for your shareholders, stakeholders, or owners. This strategy is all about pricing your product right. It is a business-unit level strategy, formulated by the senior managers of the unit. Strategy is a word when pronounced, the hearer picturizes a crouched person, alert and ready to attack at his enemy with focus, discipline and most importantly, with patience. The examples of business strategies application in the economy are also discussed below. What are the Types of Business Strategy? The main types of integration are: Backward vertical integration. The business strategy also guides many of your organizational decisions, such as hiring new employees. 1. In other words, the choice of the company determines the type of advantage they gain over competitors. You can set professional and personal goals to improve your career. Business Strategy is a business plan devised to beat competitors. Types of Business Strategies: 2, Acquisition Strategies. This is a common strategy used by Fortune 500 companies to gain an advantage in a new or rapidly growing market. A business strategy, in most cases, doesn't follow a linear path, and execution will help shape it along the way. You can follow me on Facebook. For this reason, today we are going to have a look at a couple of types of business strategies that can inspire you for your own business. Global Strategy. Examples of Types of Businesses Many businesses begin as sole proprietorships, as this type of business is great for many new, small businesses. Some organizations focus on selling more products to the same customer. Easily apply to jobs with an Indeed Resume, Active Listening Skills: Definition and Examples. Types of Marketing Strategies. You will be able to do the following after you finish the material: Three general strategies are cost strategy, differentiation strategy and focus strategy. What Are the Different Types of Strategies in Business?. 1. The examples of business strategies application in the economy are also discussed below. Thank you for reading and learn about corporate strategy. The Generic Strategies can be used to determine the direction (strategy) of your organisation. Market penetration is probably the first – almost default – option of small businesses hoping to grow and expand their operations. Let’s use these overarching types to look at some of the marketing strategies small businesses can employ today. That means the focus will be on the current products or services, in the current market.It is pr… Organizations of all types, military and nonprofit, educational and governmental, use e-business strategies. Indeed is not a career or legal advisor and does not guarantee job interviews or offers. Types of Corporate Strategy # 1. There are business strategies that are industry proven and are also applicable in real life situations when starting or running a business. Facebook’s buy the competition strategyhas been successful ever since the company was launched. Some companies have even built a strong reputation for having exceptional customer service. For many industries, this is a means as well as the end result to achieve a low cost of production and in turn, achieving cost differentiation. Two important dimensions to … Google’s new Chrome OS operating system illuminates years of monies spent on product development. A small business starts out as a newcomer to its market, either trying to take some market share from other competitors or to carve out a new market in which it can dominate. An example of horizontal integration would be Apple entering the search-engine market or a new industry related to laptops and smartphones. Over all nice article… Hope to find more.. Three Types of Competitive Advantage. The information on this site is provided as a courtesy. Several strategies have proven successful to drive revenue and promote a company both online and off. Thinking of starting a company? 3.Clarify Existing Business Strategies. It is based on the mission and goals of the firm and the roles that each business unit of the firm will play. Setting goals can help you gain both short- and long-term achievements. It is very important for an organisation to grow with time and hence, growth strategy is one of many types of business strategies. Examine real-world scenarios involving strategies as you study the lesson entitled Different Types of Business Strategies. There are various strategies for business growth. The success of these strategies will obviously depend if the firm is able to draw above industry profit margin while being the market leader. Posted on April 24, 2014 by support admin. One way to achieve this is to reduce Operating costs which will reduce the production cost while retaining profits, another way is achieving economies of scale, wherein the firm will do a mass production by overusing the assets and third way would be maintaining a control over value chain like bulk buying to reduce procurement costs. Was perusing the net when I came across your article on types of strategies and found it indeed made a very interesting read. You might need more than one business marketing strategy to keep your business growing. Let's stay in touch :). This doesn’t mean the prices are lower, on the contrary, the prices may be higher. It is one of the types of Business strategies used by top firms such as Walmart and Amazon, who sell products on the promise of low costs. Even outsourcing in few cases can be considered as reducing the costs. Different Types of Business Strategies. The focus strategy is really a hybrid of the cost and differentiation strategies. For ex: Commuters in Stockholm get a pass for metro which may be either monthly or weekly. They come in many varieties including product, pricing, promotion, distribution, technology and management strategies. Usually, companies have a problem in one specific area, so a business strategy that's focused on improving customer service will usually focus its objectives on something like online support or a more effective call center. Types of Business Strategies: 2, Acquisition Strategies. This involves the combination of firms that are involved in unrelated business activities. Here’s how to identify which style works best for you, and why it’s important for your career development. VERTICAL INTEGRATION STRATEGIES When a company expands its business into areas that are at different points on the same production path, such as when a … Also increasing costs and economic fluctuation can seriously affect the firm. In this article, you will learn about the different types of marketing strategies.. 1) Business-to-consumer strategies: Cost Leadership Strategy. In order to use this as your business strategy, you will need to define what "innovative" will mean for your organization or how you're innovative. It is not a … Breyers Ice cream have developed special Sugar-free ice creams which are promoted as “NO SUGAR ADDED” targeting specifically to health conscious and diabetic people. A business strategy is a deliberate plan that helps a business to achieve a long-term vision and mission by drafting a business model to execute that business strategy. 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