Question

Provide an example of your interpretation of a business strategy and how it is used either at a company where you work or have previously worked. Illustrate your answer with examples. In your opinion, was the described business strategy successful in achieving its stated goals? Why, or why not?

Answer 1

Business strategy is a company's plan for achieving its vision, goals and objectives with a specific business model. A company decides to use a business strategy based upon their goals and objectives. Generally, there are 4 types of basic business strategies but these strategies could be used in a department of the company or by combining 2 or more strategies to create a new strategy depending upon the objectives of the company. The basic 4 types of Business strategies are:

1. Product Differentiation: This strategy is used when the company’s product or services are unique in the market. The company can use this strategy by highlighting the product’s superiority in technology, features or price. Example – Apple uses this strategy for its products.
2. Low price strategy: This strategy is used when the company provides its product or services for low cost than their competitors in the market. Example – RyanAir uses this strategy for its services.
3. Merger & Acquisition: This strategy by a company through merging and acquiring companies to either enter into a new market or gaining a strong hold in the current market. Example – Facebook’s acquisition of Instagram to gain hold into the social media market.
4. Technological Advancement: This strategy is used when the company’s product use technologies which are not already available in the market. Most of the technology companies spend huge amount on the Research and Development(R$D). Example – Google uses this strategy for various product and services.

The business strategy used by my company where I previously worked was a combination of low price strategy with new technological advancement. The company was in Information Technology Service market and specializes into niche IT services. The firm entered late into the market but with this specific strategy, the company was able to hold gain into the market very quickly. The company provided these services at low cost by utilizing its resources in South east countries. This strategy worked well for the firm to realize its objectives as firm’s competitors provided services with high cost to the clients.