Effective business strategies are the choices made with specific targeted customers that allow you to grow your business effectively. Most businesses have goals, plans or hopes about how to achieve success in their company, but most do not have an effective strategy in place for reaching those goals. Those that do have a strategy in place do not realize it may even be flawed or ineffective for their business model. A.G. Lafley is the former CEO of P&G. Below he outlines five specific choices your company can make to grow your business by way of an effective business strategy.
The most effective type of business strategy consistently is changing and optimizing the strategy to reach more consumers. Identifying the needs of new generations of consumers can help your strategy show greater results by the ability to adjust. Lafley believes there are two fundamentals to an effective business strategy that are timeless. The first strategy is to always know where to position yourself in the market concerning the needs of the consumer. This is considered the where to play choice and how to win choice. The other part to an effective business strategy should be what makes your company different or stand out from your competitors. Having a deeper understanding of your buying public and being a leader or innovator within your field will ensure your goals are met.
Mr Lafley explains that the five core choices your company makes in relation to the strategies you have implemented determine your success or failure in the industry. Your first choice should be to better understand the people that you are trying to sell your products and services too. Selling the most product to the most people is not a choice, understanding what makes them a buyer is a choice. Improving on your product or service to the point that you are an innovator is a choice that will help improve your success rates. If you understand the needs of the consumer and continue to modify your plan to meet those needs, your plan has a higher chance for success.
Lafley further explains that promoting a leading brand is not as effective as creating new brands that meet the needs of your customers. This shows your ability to not only grow, but to also consider alternative courses of action to meet a common goal. Partnering with other innovators, customers and suppliers will improve the likelihood your business strategies are effective. Taking all those into account, and building them up on a global scale is the final choice a business can make to increase the chance they will meet their desired goals.
Lafley concludes that to ensure these choices and strategies are effective, you must be willing to adjust your plans as the needs of your customers change. Whether your customer base is getting older, changing technologies or they are expanding their family unit, you must be able to adjust your strategies to meet their needs as they change or you will simply be left behind when another innovator attracts your customers by fulfilling their changing needs.
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