Business strategy is a familiar term to many managers and leaders. However, many startups, small or micro businesses in Vietnam operate according to market trends without planning a long-term development path. According to statistics published at the end of 2018, more than 14,000 businesses died clinically due to not having a business strategy. This issue further shows the urgency of business strategy for the organization. Let’s find out with Apexcorp why it’s important to build the right business strategy from the beginning.
What is business strategy?
Business strategy is a set of decisions about goals, methods, and ways of doing business in the long term. It can be said that building a business strategy is determining resources, market situation, and external factors to establish appropriate activities. The ultimate goal is to increase profits to the highest level and promote the development of the organization and business system.
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The meaning of business strategy for businesses
Develop quickly
By evaluating pros and cons, analyzing opportunities and challenges of the business, business strategy helps administrators make wise decisions, promoting rapid development. Besides, determining goals and KPIs allows businesses to measure performance and work progress compared to expectations. At the same time, quickly detect ineffective factors to improve and change to perform better work in the future.
Ensuring long-term maintenance and development
With today’s constantly changing market economy, businesses need to develop and improve products and services to promptly meet market needs. Through the steps of strategy building, organizations can in-depth analyze customer expectations and current market needs to review and adjust operations. From there, leading the trend, maintaining sales and the sustainable development path of the business. This is also of great significance to help enhance the organization’s competitive advantage over competitors in the same industry.
Why is it important to build a solid business strategy from the beginning?
Activity orientation
Business strategy guides long-term operations and a clear development path for the business. At the same time, strategy helps determine overall, long-term goals with short-term goals to direct efforts on the right path, to the right destination. This applies to all research, analysis, measurement, implementation, development investment, and human resource training activities. A brave administrator will map out the right development path for the organization from the beginning, instead of leaving it at the mercy of the market.
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Focus on core business activities
A company can operate in many fields and develop many products and services. Strategy allows businesses to focus on allocating resources. Budget into main business activities to establish and deploy strategies that bring high results. Supporting business growth. This factor helps optimize work performance. Create opportunities to achieve high goals with limited organizational resources. Especially startups, small and medium enterprises.
Enhance competitive advantage
Business strategy is a tool to enhance a business’s competitive advantage. Because strategy includes policies on product development and pricing. Distribution system, marketing, branding… These elements bring quality and trust to customers and partners. Investors thereby increase the organization’s sales, value and position.
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APEXCORP – BUSINESS STRATEGY & MANAGEMENT CONSULTANT
Head office: 88A Nguyen Trong Tuyen, Ward 8, Phu Nhuan District, Ho Chi Minh City
Consulting office: Business Center, Masteri Thao Dien, Thao Dien Ward, City. Thu Duc, HCM
Hotline: 0903 25 55 25
Email: info@apex.edu.vn
Website: apex.edu.vn
Fanpage: Business Doctor (Dr Biz)
