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What is Strategy and why is important? Chapter 1 - Coggle Diagram
What is Strategy and why is important? Chapter 1
Main Definition of Strategy :
Strategy is the set of actions that its managers take to outperform the company´s competitors in order to achieve superior profitability
Strategy key advantages
Better chance to succeeding
Set company appart from its rivals
gives market positioning
Gives directions and guidance in order to achieve
company can achieve more easily a competitive advantage over rivals
Actions and Business Aproaches that defines a company Strategy
Actions to gain sales by performing unique designs, quality and customer service
Actions to attach new products to the company
Actions to acquire with other entrerprises or companies
Actions to gain sales by droping prices
Actions to catch new opportunities
Actions to upgrade the company´s resources
Actions to bargaining positioning on the market
Actions to manage areas like production, sales and finance
Top used strategic approaches to get a competititve advantage
A focused differentiation strategy
Offering buyers customized atributes to their products or services
Low-cost provider strategy
Low prices to catch buyers and customers, thus get advantage of rivals
A focused low-cost strategy
Focusing on the company´s product from the othe rivals in order to get more ways to catch the buyers attention
A broad differentiation strategy
Differenciate company´s products that the rivals companies
Best-Cost provider strategy
Giving customers more value with low price
The strategy takes time
This process occurs more soon if the main areas of the company are well-organized like the tecnology area of it.
What makes a strategy a winner?
A winning strategy should win the following three tests.
The Competitive Advantage Test
The company can fail if the process have problems
If a company beat all the tasks, it can be able to win over rivals
The Performance Test
The competitive strength and the profitability can make a company more stronger in finances, market control and get a better performance in the future
The Fit Test
The company can be able to win if all the activities are well organized.
The Business Model
Inside the Business Model exists two different ways to make a company, the best company.
Customers value position
Is the company approach to giving customers needs with a price that they consider a nice value
The profit formula
Is the company´s approach to determine a cost in order to generate profits.
Value-Price-Cost framework
P= Price
C= Cost
V = Value
By Andrés Cela
