A business strategy means a roadmap or a planning of any firm or enterprise. It can simply be a game plan of a long-term as well as short term business. A business planning will cover a minimum period of about 3-5 years (sometimes even longer).It helps in getting first mover advantage. It also helps to achieve enterprise goals.
Most of the small companies as well as huge industries have plans to grow their scale and increase sales and profits.However, there are certain methods companies must use for implementing a growth objective. A growth strategy means introducing a new product with adding new features to existing products to compete with rival firms. Sometimes, a small company has to increase its product line to keep up with competitors. Otherwise, customers may start using the new technology of a competitive company.
PRODUCT DIFFERENTIATION STRATEGY
Small companies have used a technique of product differentiation planning. when they have a competitive advantage, such as superior quality or service. It helps a firm to differentiate their product from rival firm. It also helps to make their product superior in quality because it creates a competition among the products between them. However, a product differentiation strategy can also help a firm to build a brand loyalty.
A small company with extra capital may use an acquisition strategy to gain a competitive advantage. An acquisition strategy entails purchasing another company, or one or more product lines of that company. For example, a small grocery retailer on the east coast may purchase a comparable grocery chain in the Midwest to expand its operations.
Skimming price planning is used when a product is newly launched on the market and sold at a relatively high price because of its uniqueness or benefits to customers. However, slowly but surely when the product gets older in the market, then the price is dropped and the price of the product reaches its minimum.