Thereare different business strategies that a business may opt to adopt.The choice of the business strategy depends on the services andproducts that a company is dealing with, as well as the competitionin the market that the entity needs to operate in. The purpose ofthis report is to discuss four business strategies that anorganization may choose.
Inthis strategy, a business chooses to become a low cost creator in anindustry, where it operates. The foundations of the cost may includeeconomies of scale, special access to natural resources, andproprietary technology among other aspects.
Differentiationstrategy focuses on developing value through uniqueness. In thisapproach, a business seeks to be exclusive in the industry that itoperates along some scopes appreciated by consumers. A companydesiring to use this tactic chooses one or more characteristics,which most consumers in an industry deem as valuable and placesitself uniquely in meeting the needs. A premium price is charged forthe uniqueness created.
Whenusing this approach, businesses provide services or products toconsumers at the best value than the price of rivals at similarfeatures of products on the market. This tactic risks out amid-ground amid a low price or differentiation and between engaging awide or a narrow market. This strategy is a combination of aspects oflow cost and differentiation.
Thisstrategy focuses on the choice of a thin competitive space in anindustry. In this case, a business selects a segment or severalsections in an industry and modifies its tactic to serving them whileexcluding others. This strategy can be based on lowest cost,differentiation, or best value.
Thecompany that I intend to work for, in the hospitality industry,applies differentiation strategy. This is because it focuses onproviding healthy foods that are not offered by other firms in theindustry.
Inconclusion, firms have an option of selecting the strategy that itneeds to apply in its operations. The business strategy chosen by acompany is exceedingly vital in providing a competitive edge to anentity in an industry.