Start-ups and small businesses are implementing strategies to increase brand awareness and position themselves as a brand within the industry, penetrate the market and gain market share. It aims to gain and engage customers, gain competitive advantage and increase profits. This process classified into many types of strategy in business. Hence, our article is a simple brief introduce a definition of what is a strategy and what are types of strategy in business.
a strategy is the means by which it sets out to achieve its desired ends objectives. It can simply be described as long-term business planning. Growth the expansion of the company to purchase new assets, including new businesses, and to develop new products. there are many types of strategy we will discuss in this article as follow.
Different Types of Strategy in Business
Growth Strategy entails introducing new products or adding new features to existing products. Sometimes, a small company may be forced to modify or increase its product line to keep up with competitors. growth can be considered among the most crucial indicators that are released. The reason why it’s so important is that it indicates the growth in economic output, whether measured by GDP, GVA, or any other measure. There are four major growth strategies.
- Market Penetration.
- Market Development.
- Product Development.
Product Differentiation Strategy is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. Successful product differentiation creates brand loyalty among customers. The same strategy that gains market share through perceived quality or cost savings may create loyalty from consumers. In a competitive market, when a product doesn’t maintain quality, customers may turn to a competitor. This involves differentiating it from competitors’ products as well as a firm’s own products. Small companies will often use a product differentiation strategy when they have a competitive advantage, such as superior quality or service.
Price-Skimming Strategy is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. Skimming is a useful strategy when
- There are enough prospective customers willing to buy the product at a high price.
- The high price does not attract competitors.
- Lowering the price would have only a minor effect on increasing sales volume and reducing unit costs.
- The high price is interpreted as a sign of high quality.
A small company will use a price-skimming to quickly recover its production and advertising costs. However, there must be something special about the product for consumers to pay the exorbitant price.
Acquisition Strategy is a comprehensive plan that identifies and describes the acquisition approach that Program Management will follow to manage program risks and meet program objectives. The use of acquisition can keep a management team from buying businesses for which there is no clear path to achieving a profitable outcome. Instead of simple growth, an acquirer must understand exactly how its acquisition will generate value. A small company with extra capital may use an acquisition to gain a competitive advantage. An acquisition entails purchasing another company, or one or more of its product lines.