Business Strategy: Definition, Examples, and Their Differences with Corporate Strategy
Business strategy is needed by companies to achieve business goals, dominate the market, and get profits. This business strategy is designed with a strategic and feasible perspective so that it can be implemented into business operations efficiently and effectively.
As a foundation for running a business, a business strategy should ideally include guidance for management in making various decisions, from recruiting new employees to developing products or services.
What is business strategy?
What is a business strategy? In short, business strategy is the company's fundamental plan. This plan needs to be developed and implemented by company management to achieve business goals. Business strategy can also be in the form of long-term plans and strategic methods that have been adapted to the company's objectives.
The business strategy must include a framework for each department and division within the company. The existence of a business strategy is expected to help all departments and divisions with different scopes of work to work together and ensure that every decision made leads to the company's business goals that have been set. That way, miscommunication in running a business can be avoided.
Practically speaking, a business strategy is a plan designed to acquire markets, attract more consumers, and gain multiple profits. In this case, the role of business strategy tends to help companies remain competitive and increase profits.
A good business strategy, besides being able to answer market and consumer needs, can also show the advantages of the products or services offered. In addition, business strategy also needs to be adaptive in reading market conditions, so that it can adapt products or services to market demand.
Examples Business Strategy
For more details about business strategy, you can pay attention to the definitions and examples, as well as the differences from corporate strategy. The following is an example of a business strategy that can be implemented by a company.
1. Product Differentiation
The first example of a business strategy is product differentiation. General product differentiation is implemented in the business to customer (B2C) business model. This business strategy helps companies to differentiate the products or services offered. For example, a food retailer with the main product fried chicken can try to innovate in a new menu, such as fried chicken with flavored sauce.
2. Improve Services for Customer Satisfaction
It's nothing new that in running a business, customer satisfaction is a challenge in itself. Ideally, companies can maintain consumer satisfaction levels, so that there is no room for consumers to turn to competitors.
Starting from accommodating to resolving consumer complaints, requires an efficient and effective communication framework. Business strategies that can be implemented include establishing company operational standards (SOP), providing job training, and providing compensation to consumers.
3. Sustainable Business
Every company certainly wants to build a sustainable business. Starting with reducing operational costs, innovating in producing goods with lower production costs, to implementing recycling programs, this business strategy can be developed. Another example of a business strategy that can be developed is innovating with technology, such as providing services through digital applications.
Differences Between Business Strategy and Corporate Strategy
Business strategy is just one strategy in running a business operationally. The term corporate strategy is also often juxtaposed with business strategy. Although in the process, business and corporate strategy need to be aligned, the two have fundamental differences. At least, there are three differences between business strategy and corporate strategy.
1. Focus of Strategy
Business and corporate strategies have a different focus. More clearly, business strategy focuses on the value and superiority of products and services for consumers, market competition, and offering the best prices. Meanwhile, the focus of corporate strategy includes adding company value, both mission and vision and reducing company expenses.
2. Level of Implementation
Business strategy is generally implemented by mid-level management such as managers or heads of departments. Meanwhile, corporate strategy is targeted at upper-level management, such as stakeholders or company leaders.
3. Strategy's Benefits
Both business strategy and corporate strategy both aim to get maximum profit for the company. More specifically, the benefits of business strategy, namely:
- provide clearer business direction operationally
- provide a guide for better business decisions
- get the most out of a competitive market
- increase the superior value of products or services
- respond to consumer needs and satisfaction.
Meanwhile, corporate strategy has the following benefits:
- ensure business operations run efficiently
- provide long-term business continuity
- ensure the company lives the vision and mission
- minimize risk
- maximize profits
- improve management quality
Knowledge of business strategy ideally needs to be honed, not only theoretically, but also practically. Equipping yourself with training from a certified program in business strategy expertise can provide additional personal and professional value.
The Business Strategy Certification Program is able to answer the needs of business activists in running the company's operations. This includes strategic discussions related to management to increasing portfolio and business expansion in a competitive market to be able to accommodate and meet real-life business challenges.