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After knowing various online strategies, you need to know what are the main principles in making a business strategy:
1. Start with Data
You can't make assumptions. Do your research to get the latest accurate data.
What is needed?
First, data about your own business. Gather facts about how your business has run over a period of time. For example, you can record how many visitors to your online store or how many sales were made in the last three months.
Second, you can learn about market opportunities for your business products. Not only how the product is needed by consumers but also how many competitors are selling the same product.
2. Choosing a Business Strategy Approach
Before going into the details of the strategy implemented, choose the most appropriate approach for your business.
There are several approaches you can try. For example, the SWOT (Strength, Weakness, Opportunity, Threat) approach. A SWOT strategy can help you identify the strengths and weaknesses of your business. Thus, you can be more targeted in making improvements ( improvement ).
You can also use the SMART strategy which is often used for various online businesses. This strategy emphasizes the achievement of specific goals that have a real impact.
An example of a SMART strategy approach is, for example, increasing visitor traffic by 10% at the end of the year.
3. Determine the Details of the Business Strategy
From the research data you have, you can determine the details of the strategy you want to implement. Do the division of strategies according to certain areas ( breakdown ). For example, what marketing strategy do you want to use?
This step is important even for small businesses. The goal is to make it easier for you to carry out the strategy that has been planned correctly.
4. Data-Based Evaluation
After implementation, you need to check whether the strategy is carried out has been successful.
If you have, you can continue by continuing to monitor (monitoring).
If not, you need to check which part didn't work. If the sales failure stems from a lack of visitors, you need to make sure whether the promotional or content marketing strategy has gone according to plan.
If needed, you can replace it with a more effective strategy.
Benefits of Business Strategy
Creating a good business strategy will provide benefits for your business, namely:
1. As a Guide in Building a Business
Business strategy helps you to know the direction of business development. Because, business strategy is always future-oriented. Although, in its implementation, it is carried out with related short-term specific steps.
2. Knowing the Success Rate
You can find out the success rate of the business steps you take. For example, if your online store visitor traffic increases by 5%, but your target is 10%, it is necessary to evaluate the strategy that has been implemented.
3. Win the Competition
By knowing the internal company and market data, you will be better able to sell products effectively. If your competitors have not implemented a good business strategy, you can certainly win the competition more easily.
Types of Business Strategy
Based on the needs, the type of business strategy is divided into three. What are those? Let's see the explanation.
1. Best Price Strategy
The first type of business strategy is the Best Price Strategy. With this strategy, the company provides the lowest possible price compared to competitors' offerings.
Surely, you are familiar with the competition between Grab and Gojek. These two companies often do price wars by providing tempting offers or promos.
Using this strategy, the company easily attracts many new customers. However, that loyalty is built on the basis of price. So, don't be surprised if customers are only temporary guests. If a competitor offers a lower price, they will jump away from you.
2. Differentiation Strategy
Next, there is the Differentiation Strategy. The focus of this strategy is product uniqueness. It can be in terms of functions, features, or other additional benefits. In other words, customers will get something that competitors don't have.
Contrary to the Best Price Strategy, the company does not hesitate to charge high prices for its products. Apple's iPhone X, for example. Even though it was issued at a price of 14 million rupiah and above, in fact, this product was sold out in just 10 minutes.
However, products that use the Differentiation Strategy are not just expensive. They offer premium features that other products don't have. Therefore, people who use this product will feel more prestigious.
3. Focus Strategy
As the name suggests, Focus Strategy narrowly targets a specific market share. The goal is to meet the specific needs of the target audience.
Surely, you have often found this Coca-Cola Zero Sugar product in your favorite minimarket. Well, this product is an example of the application of Focus Strategy. For those who avoid sugar consumption, of course, Coca-Cola Zero Sugar can be the best alternative drink.
Well, this type of business strategy also works on manufactured products such as gadgets or cars. For example, the car manufacturer Chrysler provides regular cars and cars for people with special needs.