The business has the best way to stand from the masses and tend to stand for a particular targeted audience. Hence, with this, the competitive advantage lies in the fact that there is a need to identify the specific target audience who will be able to help in clearly specifying the needs along with the development of the high-quality solution, under a priced product or the service. (Johansson et al., 2017). The target audience for the competitive advantage also focuses on the needs. The cooks want a faster way to cook the food with the welcoming of the microwave. The busy people includes the affordable ways for communication as well as embracing the cell phones. (Larkin et al., 2017). The businesses are also able to identify the needs as well as finding a clear advantage.
Importance of the Business Strategy in Organization
The major focus has been on the management competitors who can deliver a high-quality service. The target includes a successful strategic advantage which could help in delivering the products or the services based on the targeted audience. The high quality is defined mainly by the different people who encompass the price, product, place and promotion as well.
The major challenge of the company is the management of the competitors, and so we need to determine the appropriate cost leadership that will allow the company to handle the lower cost production in the industry. The business includes the improved market profits with increased sales and the decreased cost. (Nardon et al., 2017). The cost leadership strategies focus on the high quality of the lower price products. Here, the business owners need to use the best labor to transform the raw materials into the valuable forms of the consumer goods. The lower costs translate into, the higher quality at the lower price of the consumer. With this, the ability to handle the undercuts, leads to the increasing market share prices, example the productivity improvement with better utilization of the capital. (Kahre et al., 2017). The other example is the handling of heavy equipment with assigning a strategy team with the competitor's product, with the reconstruction of the manufacturing facilities.
For the market segment business, there is a need to protect it mainly from the competition with the limited resources. Example, the lower priced coffee mainly in the geographical area with high specialized cost leadership strategy. Analyzing the company Coca-Cola, it is easy to understand the controlling plans and the productive strategies. The strategic development policies are set with integration plans as well as value-based strategy. (Green et al., 2005). For the business strategy, the determination of the appropriate price depends mainly on the market with the competitive strategy that the business works on. For the Starbucks, the worth of the coffee is $4 to $5. Hence, the customers are also able and willing to pay this amount. The company caters to the different types of the audience than McDonald's which can sell coffee at a lesser price. (Sherman et al., 2017). The appropriate pricing is easily determined mainly by the competitive position where the hope is to achieve the relative competitors and to handle the weight of the brand image as well. For achieving the competitive advantage, there is a need to work on the best pricing, easy access as well as the best quality of the services which will help in finding the ways to differentiate mainly from the masses. The pricing strategy is important to maintain the competitive advantage with the penetration, economy as well as other promotional strategies. The pricing uses the lower initial price with the gain in the market share that tends to increase the price to a particular level as well. (Agarwal, 2017).
- Effect of new strategy among the staffs
The new strategy introduced by the company will increase the motivation and morale of the employee. It also helps for managing the issues faced by the employees (Sherman 2017).
- Impact on corporate image
By reviewing the strategies, the company can able maintain an active corporate image, and it also helps for improving the customer base (Green et al. 2005).
For the proper setup of the business, it is important to review the financial position as well as the planning of the business. In this, it is important to analyze the flow of cash, the balance of all the money which has been flowing in and out of business. (Yuliansyah et al., 2017). The working capital includes the requirements where the cost base methods, as well as the borrowing lines of credits or loans, help in accommodating mainly to the business changing needs and the growth. The conducting of the competitor analysis will assist in gathering a clear idea about the sales literature, advertisement, shared suppliers, exhibitions, websites as well as the company accounts. The SWOT analysis will help in improving the condition of the company with setting the forms for the customer and the market analysis. For the better business opportunity, there is a need to focus on planning the changes in the market, with emerging new services or then amend the needs of the customer. The changes are competitive with the activities including the external factors like the economy, import or the use of new technology.(Bentley et al., 2017).
While analyzing all these aspects, we can understand that by introducing new strategy the organization can able to manage the competition in a productive way. For the reviewing of the business, it is important to work in the longer term and the strategic planning that will help in creating the departments in the business, as well as appointing the managers. (Noe et al., 2006). The review of the progress is based on how the business could be performed with the assurance that the plan is not outdated. Hence, to access the efficiency of the business, there is a need to consider the areas of the pricing, marketing and the sales with after-sales service, designing, packaging the systems in an efficient manner. The review of the costs is necessary for better deals with the suppliers.
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