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.

Obstacles You Need to Surpass on Your Online Home Business Journey

We all know the power and capabilities of Internet when it comes with money making. If not, you are far away left behind my friend. Making money online 5 to 10 years ago is entirely different today. Internet technology really moves very fast and we have to go along with this trend for us to become successful on this Industry.

The Internet presents a huge goldmine just simply waiting for the right person to come along and dig into it. However, there are some obstacles or bad news about online home business. You have to understand that it is not as easy as it sounds to set up and build successful online business. There are several obstacles or bad news that you need to pass through and below are some of them.

Time – You have to provide a profitable time for you to build your online business. Ensure that the time you spend is a profitable one for your business. Since you are aiming with online business, you have to be in front of your computer doing something that will help your business to grow. It is not necessary to spend more than eight hours in front of your computer. Two to three hours per day will do. As long as it is business related and again, it is a profitable time.

An example of profitable time is an hour per day trying to educate your self. It is not advisable to go to online business battle field without any battle suit and sword. Your education will serve as your weapon as you travel your online success. Read some free eBooks available online. Although, there are some cases that you need to cash out extra bucks for you to receive a good information or knowledge but rest assured that it is worth it.

Information Over Load – This is one of the common bad things about online business especially for beginners and I was on the same boat before. It seems that I want to try everything I read, heard and watched. I want to apply all the techniques that will help me to become successful online without realizing that some of the information available around the net will not work for me or for my business. It is advisable to look for a mentor who is honest enough to tell you what will work and will not work for you. Stay with a single procedure or steps and during your online journey, you will notice that you need to change or modify your strategy. You will learn everything when you are already doing the business.

Budget – Online business is not Get Rich Quick Schemes. Yes, I know that you already found several advertisements that say “Earn $1000 on your first day” or something like that. But believe me; it will take some time, effort and money for you to reach what you really desire. Actually, you need a budget just to educate your self for you to do the business in the right way and market it. You need money to gain additional skill set needed for your business and market it.

Skills – Since we are talking with online business, you really need to have same basic Internet skills. Yes, you read it right, just basic skills. As long as you now how to turn on/off your computer, move your mouse, read emails, navigate a website and etc, you will be fine. But you have to educate your self since Internet is really a fast environment. There’s no need to have a programming or web designing degree. Personally, I don’t have any experience when it comes with web designing and web publishing. I just learned it from a free eBook online. This is a good example of profitable time. Reading free eBooks on how to create a simple website during my free time.

When I was a beginner, I don’t have the skill set needed to run any online business. All I know is how to open/close my computer, surf the net, navigate a website using the mouse, check and read emails and other basic skills about computer. You now what I did? I search online for a free eBooks that can help me to market and run my online home business. I found several free eBooks that I still use until now. This includes an eBooks on how to create a wed site, eBooks that teach me on how to use specific video editing applications and many others. I keep on searching for additional information that I can use to boost or improve my skill sets. Eagerness to learn is my only weapon when I am just a newbie on this online home business battle field. Eagerness to learn serves us my sword to survive on this battle field.

There are still several bad things that you can still encounter as you travel your online journey. What I just provided above are some major bad news or problems. But let’s put it this way; do not consider them as bad things. Picture them in a positive way. Consider them as challenges and along the way, they will help you towards online success.

Once you manage the bad news or obstacle, you will surely experience the financial freedom! Every one of us wants financial freedom right? This is the main reason why you want to put up an online home business. If you set up your business the proper way and turn the bad news into positive one, I’m 100 percent certain that you can also achieve what they called financial freedom using the power of Internet.

8 Business Pitfalls to Avoid

How can you increase your chances of achieving business success? By winning the lottery or inheriting oodles of money? Whether you are an established entrepreneur or you are just starting out in business you need to realise and accept that there is no quick fire road to success.

However when you take steps to avoid the cracks (pitfalls) in the footpath you stand a better chance of paving your way to business success.

Here are the 8 Pitfalls to Avoid:

  1. Success Breeds Success. Do you think you know everything about business? Have you realised yet that you don’t have all the answers? Become an effective and profitable business by seeking advice from people who have already achieved great success. Let’s face it they have done the legwork. Connect with highly successful achievers and absorb all the experience and knowledge you can.
  2. How Big is your Vision?Did your business start out as a small idea? Has your small idea grown, changed or evolved? How much impact is your small idea making toward to future? Think big from the start. See your business at varied intervals – five, ten, twenty years. Ask yourself – What do I want to achieve and How will I be remembered? Believe in your vision and make it happen.
  3. Who is your Market?Before you rush headlong into your business you must research your market. Never assume that you know who your target audience is or what they want. Assume and you may miss the biggest opportunity of your life. Understand what your market needs and adapt as your business grows.
  4. Don’t Ignore Social Media. Not entered into business battle with social media yet? Admittedly social media is the talk of the town – it’s in the moment, right now. But is it necessary for my business you ask? Quite simply yes. Social media used in a targeted way can be a very effective marketing tool. Learn how to use it and choose what suits you best.
  5. How Do People Get to Know You?Your brand is your reputation. Your brand is your personality. Your brand is what others think of you. What does your brand say? Make sure your brand meets with your standard, your expectation and delivers the identical message and service to each and every client you do business with.
  6. Look after Loyalty.Heard of the 80:20 rule? That 80% of your work comes from 20% of your customers. And who are these customers? Existing, loyal people who have established a long-term, ongoing relationship with your business. Don’t overlook these people and only focus on attracting new customers. Stay in touch with them and show your care and appreciation for their loyalty.
  7. Improve your Business.Ask for feedback. How else can you manage any issues that arise? How can you change if you don’t even know there is a problem? Or do you think that you are doing everything right?Request honest feedback at random intervals or as standard with all new customers. Learn, improve and achieve better results.
  8. Plan your Finances.What is the main reason why most businesses fail? Poor financial planning and negative cash flow. Start your business with a plan, follow your plan, adapt your plan, and watch your business thrive. Manage your money well; over-estimate your expenses and under-estimate your income. Surely you’d rather have more money than not enough?