Business Strategy

A business strategy is formulated by selecting the target audience of the product and assembling the marketing mix. A firm can assemble marketing mix elements in many different ways so that the relative weightage of the different elements will be different in the different combinations. Because of this reality, business firms are employing an abundance of strategies and strategy stances. It is a relentless race to stay ahead of competition.

Basically, however, there are only two broad routes available for forging business strategies. They are the price route and the differentiation route. In other words, any strategy has to be ultimately either a price-based strategy or a differentiation-based strategy.

Companies taking the price route compete on the strength of their pricing and the price cushions they enjoy. Normally, those who resort to the price route and compete on price will enjoy substantial cost advantages, giving them flexibility in pricing and marketing. The differentiation route, on the other hand, revolves around elements other than price. The product with its innumerable features is one major source of differentiation. In fact, any of the ever-so-many activities performed by the business unit can constitute the nucleus for differentiation.

In other words, differentiation allows the company the freedom and flexibility to fight on the non-price front. Differentiation, therefore, is a crucial option for a firm in its search for a rewarding strategy. A good majority of business battles are in fact fought with a differentiation-based strategy rather than a price-based strategy.

As already mentioned, a business unit that opts for the price route in its competitive battle will enjoy certain flexibilities in the matter of pricing of its products, and use price as the main competitive lever. It will price its products to suit varying competitive demands. It will enjoy certain inherent cost advantages, which permit it to resort to a price-based fight.

Business Strategy For Facilitative Leaders

Business Strategy

Did you know that business strategy is the art of deception? The study and design of your business strategy will have far reaching effects on your business. Many business leaders overlook the importance of understanding business strategy. As a result, many businesses fail or operate at sub par levels. There are many areas of business strategy to study, but the key components are (1) gaining a competitive advantage, (2) being an effective leader, and (3) winning with ease. These are all essential principles found in the book by Sun Tzu, The Art of War.

Gaining a Competitive Advantage

Competitive advantage can be won through avoiding commodity business models, knowing when to compete, gaining higher ground first, and by being original.

Avoiding the Commodity Business

Jack Welch, former CEO of General Electric, once said, “We are all just one stroke away from commodity hell”. The commodity is something that any business should stay away from. A commodity is a good that a business is powerless to change the price. For example, farmers are price takers and can only sell their goods for the price the world is willing to put on them. No matter how well the farmers does in raising up goods, the price will be what the market gives. There are many service businesses that have very little ability to change raise prices. If they do, they will not get any business. The bad thing about a commodity business is that the only way to sell is on price and that makes the profits go way down for everyone. The only way to get out of the price war is to gain higher ground.

To avoid commodity hell, the business must find an advantage. Some of the ways to get out of commodity hell are through branding, developing superior technology, and having top notch employees. Some companies develop a superior system that is efficient and that can manage a vast network well. There is a lot that can be said about each of these items.

Know When to Compete

In trying to gain the higher ground, there are a some good things to know. You should only compete when you know that you can win. You should never compete on a level playing field unless forced to do so. And, you should never ever compete in a battle that you are at a disadvantage.

Get Competitive Advantage First

In other words, take the higher ground before you compete. In that way, you will have a good chance to win. In business, battles are won before the competition ever begins. The best companies develop technology or intellectual capital first and then choose to compete when they think they can win.

Be Original

It is unlikely that any firm can gain the competitive advantage by trying to copy another. The reason is that the competitor will always be one step ahead of you and a smart competitor will even mislead you purposefully. Any business that wants a real market advantage will most likely need to develop their own ideas, keep them secret, and follow through.

Being an Effective Leader

A great leader must be strict, reward bravery, and avoid personal character downfalls.

Strictness as a Leader
Discipline must be swiftly carried out against the disobedient. There must be an effective system of rewards and punishments in place. The effective leader will be able to persuade others to the importance of the mission and commit them to work hard for the goal. Any leader that can’t manage their people must be removed.

Leader Character Downfalls

Some of the traits that can cause a leader harm are cowardice, recklessness, worry, hasty temper, and honor sensitivities. According to Sun Tzu, these are the five sins of a leader that lead you to get captured, bring destruction, trouble, shame, and poor decisions.

Rewarding Bravery

A great leader should reward people that are brave. People that step up and get things done that are risky or not popular should be rewarded for their efforts. The act of rewarding bravery has a great deal with keeping a company in competitive advantage. When employees are willing to take risks and give it their all, the intellectual contributions will give the company great advantage.

Winning With Ease

One of the greatest things that Sun Tzu said was, “What the ancients called a clever fighter is one who not only wins, but excels in winning with ease”. The greatest leaders know when to fight and when not to fight. They know how to compete in areas that are not well defended. They know how to use their people to win. When leaders win with ease, they are rarely given credit because it looks so easy. What many people don’t realize is that the battle was won before the fight began due to careful planning and strategy.

Final Thoughts

Business strategy is complicated. The businesses that do the best often the best at deceiving their opponents, balking their competitors plans, or, even better, have the best employees and constantly break new and higher ground before anyone else gets there.

The Best Business Cover Letter Ever

The corporate world is a place where no silly games are allowed, no children are permitted and no tantrums and whines are accepted. It is the world where you transform to be the mature person that you need to become. It is the training ground to the many business battles in your life. It is where you can unleash your intellectual and strategic capabilities. It’s the world where decisions, determination laced with fun co-exist with one another.

Looking for your place in the corporate world is easy enough to do if you know what your priorities are. If you have an idea of what your abilities, strengths and aptitude are you can wisely take advantage of them in presenting yourself to the rulers of the corporate world. But before you primp and wear your power-dressing outfit to deliver your weapons to the different companies of your choice, you need to make sure that your resumes and business cover letters appropriately reflect the person wearing the all too professional business suit.

Resumes are the backbone of the jobseeker’s achievements and desires. Business cover letters are the foundation of his/her skills and accomplishment. As someone who wants to be a part of the business world, your resume should reflect who you are and who you want to be. The business cover letter, on the other hand, should stress and indicate the qualities that you have to make dreams a reality.

Writing a resume is simple especially if you have a template to follow. Business cover letters are somehow easy to do as well with the different templates you can get ideas to. However, writing a business cover letter can be harder than writing a resume just for the reason that you are in a way merchandising your strengths that shouldn’t sound arrogant, too good to be true and egotistic.
If you’re writing your business cover letter, here are some tips and tricks that you can follow.
Even if you know how to make one, it’s still better to review or check sample business cover letters online or at writing/business books. In these time and age where everything is changed in just a minute, it’s wiser to check if you’re still up to date.

If and when you follow business cover letter templates, make sure to just get the gist of the template. Sample templates are there as models only. You still need to do your own construction with the basic structure that templates give. The most common mistake of jobseekers that use business cover letters is that they only delete and change the part of the template where their information is needed. And then leave everything as it is. You cannot impress or catch the attention of your potential employer if he/she sees another altered business cover letter template. He/she’ll just think of you as someone who can’t even write an original cover letter.

Make it a point to outline what you plan and can do for the company. Not just the standard line where jobseekers say that he/she wants to be an asset to the company. You need to be more specific and more driven than that. It will show that you already value the work that you’re looking for.