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While doing research on corporate strategy, I came upon numerous sources but finally I settled on two whose approach of the subject I felt is more adaptive to today’s business environment. The first source, the Harvard Business Review, offers a more non-conventional approach to the subject of corporate strategy while the other, Marketing, Planning and Strategy, explains the standard academic knowledge on strategy. The aim of this paper is to bring to attention the various corporate business strategies that organizations use to achieve their business objectives.
This paper has been organized into three parts: the introduction, which delves into what strategy means, its background and the challenges it faces in today’s very dynamic business climate characterized by quickly changing business tastes and emerging competition while tracing consumer dynamics. The second part delves into different types of strategies that a firm may employ to reach its new business goals of maintain an edge over competitors and threats. The last part is a brief conclusion on the topic of discussion of corporate strategies.
According to Jain, strategic development is in no way an easy job, especially now more than in the past. Factors like economic uncertainty, international competition and environmental challenges pose greater risk than ever; yet, on the other hand better understanding of ways to manage risks have been unveiled and can be incorporated into corporate strategy. Many factors count towards successful strategizing by any company; proper skills, knowledge and experience is fundamental for top management teams. Productivity of employees plays a central role towards organizational development of strategy since motivated and well rewarded employees respond to better management skill.
According to Porter, strategic environment is ever changing, “Positioning – once considered the heart of strategy – is rejected as too static for today’s dynamic markets and changing technologies”. Therefore, Strategy is what puts a company ahead of competitors. The essence of strategy is not inventing new activities but choosing to perform same business activities differently from the rivals. For instance Coca Cola Company and Pepsi are associated with soft drinks but each corporate remains distinctly different in many ways that make the products almost unrivalled. This is because of teams making smart choices when formulating corporate strategy.
Types of strategies
Jain outlines and explains in details the different types of strategies that a firm may use to achieve its goals.
Market strategies: A company may look at a market in its entirety or as segments; this usually depends on the number of products differentiation the company has to offer to its clients.
Product strategies: this strategy is based on product design, scope and means of adding values to make product better placed to change consumer buying habits to he favour of one’s product. Successful strategies may be tricky but commitment and close cooperation between all involved partner and departments with the inclusion of the research, marketing, finance and the corporate staff departments, product design, packaging and evaluation should reveal a plan to make a new product displace an outdated product from market.
Pricing strategies: These are strategies that either negotiate for low priced products or classed products that provide a range for every consumer. For instance, Ford Motor sell assorted of automobiles that suit every American budget in order to attract and maintain many customer. Consumer trends like inflation, material shortages and consumerism usually affect the expected fair price resulting in price increment . The factors most critical in formulating a pricing strategy include competition, demand and cost of materials.
Distribution strategies: these make use of the channels of distribution at the firm’s disposal. According to Jain, channels are organized structures of buyers and sellers that bridge the gap of time and space between the manufacturer and the customer . A company may consider a direct distribution channel where it does not involve any intermediary or an indirect distribution channel where it makes use of an intermediary.
Promotion strategies: these concentrate on persuasive communication to the customers, and revolve around the concept of promotion, advertising and personal selling, and must match price and sales expectations of the products being promotion .
Global strategies: with growing globalization, firms have adopted to this economic and social movement by causing the growth of what is now called global markets. There is an increasing trend by many countries to abolish trade tariffs due to international pressure. According to Jain, technology has been a major contributor in this regard.
In conclusion, a corporate strategy entails creating awareness in all management teams in order to achieve organization mission. In regard to this factor, therefore, strategic management arm of the organization should be most vigilant to make sure that the day to day business operations are bases and are focused on the best strategies that will meet the organization’s long term vision (Porter 8). According to Porter, a sustainable business strategy needs trade-offs, appropriate product fits to reduce imitators and sound leadership perspectives .