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STRATEGY AND ITS IMPORTANCE IN A COMPANY - Coggle Diagram
STRATEGY AND ITS IMPORTANCE IN A COMPANY
Is the set of actions carried out to outperform competitors and achieve superior profitability
To achieve this is imporatant to consider this choices:
How to attract and please customers
How to compete against rivals
How to position the company in the marketplace and capitalize on attractive opportunities
How to respond to changing economic and market conditions
How to achieve the company's performance targets
Competing differently: doing what competitors don't do or doing what they can't do
Competitive advantage need a distinctive strategy
When a company can offer its consumers a product with supeior value or of the same value at lower cost than their competitors, it is said that they achieved a competitive advantage
The company has to be flexible with the strategy because the circumstances are changing
TYPES
Proactive: planned actions to improve the company's financial performance and secure a competitive advantage. Also known as deliberate strategy
Reactive: responses to unanticipated developments and fresh market conditions. Also known as emergent strategy
A company's business model sets forth the logic for how its strategy will create value for customers and at the same time generate revenues sufficient to cover costs and realize a profit
A winning strategy must pass three tests:
The Fit Test
The Competitive Advantage Test
The Performance Test
The performance of a company depends on its strategy and how it is executed