The needs of customers are one of the major driver of business strategy. It is essential to understand the needs and to identify how to satisfy these needs more fully, more exactly, or more profitably than competitors. Therefore every organization or company should focus on business strategy in order to achieve this goal and beating competitors by meeting customer need.
I would like to give you a brief about Business Strategy in order to get a clear picture about how you can run your business in the marketplace and understand customers’ needs. Business Strategy is a method or a plan that help your company to obtain a competitive advantage. It is more related with how a business competes in particular market. In simple term it can be defined as a plan that says where a company wants to go and how it envisages getting there.
From this point, it is necessary to understand the nature and scope of customers’ needs, how these needs differ between different groups or individuals, and how these needs are changing based on many certain circumstances and factors. Business Strategy is therefore market driven and likely to have very heavy involvement to marketing people.
For instance, In KIA motors or Hyundai, there is no evidence that KIA or Hyundai defined clearly exactly how KIA/ Hyundai combination was expected to look from the customers’ point of view or how it would help KIA or Hyundai to meet customers’ needs better. In apparent competition with Toyota, KIA and Hyundai may have had a clear strategy for how the business strategy that they adopted would need customer needs. I am not doing marketing ads for mentioned companies, but I am giving only examples!
Provide sustainable competitive advantage.
The best business strategies are those which use the capabilities of the company to address customer needs in way which leads to sustainable competitive advantage. From my perspective, Business Strategy must describe what the basis of completion is, how this business is changing, and how the strategies take advantage of these changes, this in turn, will create a clear difference that is important to your customers, and is something your competitors cannot match. For instance, build up a brand loyalty, differentiate your product or service and continually innovate all these elements can help to establish sustainable competitive advantage.
As John Kay (1999) has pointed out, business, like people, have to go through good times and bad times. It is probably impossible to achieve competitive advantage permanently and excellent corporation that can achieve a permanent and irreducible lead is a myth.
To sum up, I would say the purpose of business strategy is to exploit the capabilities of enterprise to gain and sustain competitive advantage in serving the needs of customers in a chosen marketplace. The key factor in business strategy that plays an essential role in supporting customer needs is Social Business Strategy that turns your company into a true “social business” by adopting for instance, create more meaningful customer relationships, distribute context among your customers, Integrate Social and CRM for more consistent response and Learn how to be social.
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