Types of strategies in business. Types and forms of enterprise development strategies

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2020-05-23 05:20:26

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A Key component of any process management – strategy. Within its framework it is regarded as a long-term detailed directions regarding the development of the company (in particular, the strategy for the sector, forms and means of its activities; the system of internal relations between all participants; the company's position relative to the environment).

For the sake of clarity it is necessary to delineate such concepts as the objectives and strategy of the organization: first reflect the end point of desire, the second – ways and his achievements in a dynamic competitive environment.

In the broad sense strategy – planned General course of action of the company, the observance of which should result in a long term aspect to the desired goals.

What is facing the user in the process of defining effective strategies of the company?

The first step is to find answers to three main questions about the situation of the organization in the market, namely:

  1. What kind of business should stop?
  2. What should be given more attention?
  3. What business should look.

Variety of company strategies according to M. porter

The Professor identifies three main areas develop a behavioural strategy of the company in the market:

1. Leadership in the field of minimization of production costs. This type is characterized by the fact that the firm lowers the cost of production, the sale of products to a minimum, resulting in gaining more market share over their rivals.

The characteristics of the companies using this type of strategy:

  • High level of organization of production, logistics;
  • Developed technology and engineering base;
  • Extensive system of distribution of products;
  • Low-grade marketing.

2. Specialization of production. The characteristic uniformity of the technological process and production, the use of special equipment and specialized personnel. Effect – consumers buy the products of this company even at a higher price.

Typical features of companies with this strategy are the following:

  • Extensive capacity for research and development;
  • Highly skilled designers;
  • Quality control of products;
  • Effective marketing system.

3. Fixation on a separate segment of the market. The company is not focused on the entire market, but only on certain group of consumers. In this situation, it can perform either of the above-mentioned policy of specialization, either minimization or both simultaneously. The peculiarity of this type of strategy – focus on the needs not just of the market and the target consumer group.

The types of competitive strategies allow to solve the main for most firms the task of achieving advantages over direct competitors. They also help in determining how it can be done.

types of strategies

Types of business development strategies

Those entrenched in practice, is called the base. They outline four different approaches for the growth of the company associated with changes in the base state of one (or several) elements, such as the market position of the company within the industry, product, industry, technology. Each of the above components can be in one of two States: current or completely new.types of business development strategies

Types of strategies the first group – strategy of concentrated growth (coupled with a change in market or product or both). Following this course, companies strive to improve a manufactured product or try to produce new, while remaining in the old sector.

As for the market aspect, it is organizations are searching for possibilities for improvement of the current situation on the market.types of innovation strategies

Strategy first groups

It is common to distinguish three types:

  1. The Strategy of strengthening positions on the market (the company's emphasis on marketing, realizes the horizontal integration – control over competitors).
  2. The Strategy of market development (finding new markets for finished product).
  3. The strategy for the development of the previously manufactured product (the transition to a fundamentally new product within the old supply channel).

The Second group of policies

Landmark – the company's expansion through the accession of new structures. Types of business strategies of this group are called integrated growth strategies. Company resort to them in a situation where the business is stable enough and cannot be followedthe first group described above. In this case, the integrated growth does not preclude long-term goals of the company. It can be achieved through the acquisition of property and expansion from the inside.types of business strategies

The strategy of integrated growth

they include the following types of strategies:

  1. Backward vertical integration (the growth of the company through the introduction or strengthening the existing control over all suppliers, the creation of a number of subsidiaries for supplies).
  2. Forward-reaching vertical integration (the growth of the organization through the implementation or strengthening of existing monitoring over their structures that are located on distribution systems, sales). This type is effective in case of substantial expansion of mediation services or the lack of first-class intermediaries.

Third group

This is a diversified growth strategy. Resorted to them if the company can not develop further in their market with their product and within your industry.

Types of strategies in this group are the following:

  1. Centered diversification (search and use of additional opportunities in the field of production of innovative products along with the existence of the Central positions of the old business).
  2. Horizontal diversification (finding opportunities significant growth in already developed markets through new product for the manufacture of which will require a different technology). Here, the organization needs to focus primarily on manufacturing technologically independent products that could use the existing capabilities of the firm, for example, in the supply. Due to the fact that the new product is aimed at the target segment of the old (primary), it's qualitative characteristics should be accompanying already manufactured product. An important condition – a preliminary assessment of the organization's own competence regarding the production of a new product.
  3. Conglomerate diversification (expansion of the company through the production of fundamentally new products in undeveloped sales system). It is considered that this is one of the most difficult from the point of view of the implementation of the development strategies due to the fact that its successful implementation depends on numerous factors: the competence of the personnel, seasonality of the market, the skills of managers, the required capital etc.

Types of strategies of the enterprise management level

Large-Scale organization with a divisional type of structure often has three main strategic decisions:

  • Delovoi;
  • Korporativny;
  • Funktsionalnyi.

In Other words, the types of strategies that achieve a productive result in the implementation of which can only be obtained if there is close interaction. Every single level forms a certain strategic environment for future (strategic plan the lower level is in direct proportion to the limitations of the strategies of the parent).

Three levels of major strategic decisions

The First strategy (corporate, portfolio) describes the overall direction of the company's growth and developing its activities in the value field. It shows your achievement of balance of goods and services through wise management of different types of business. Strategic decisions at this level are recognized as rather complex due to the fact that relate to the organization as a whole.

In corporate strategy consists of the following areas:

  • Resource allocation on the basis of the portfolio analysis between the relevant business units;
  • Diversification of production as a way to reduce possible economic risks and synergies;
  • Changes in the corporate structure;
  • Merger, acquisition and entry into this integrative framework as FPG;
  • Universal adherence to the strategic direction of the units.

An Important decision taken at this level, – the implementation of financing products or business units solely on the basis of the budget.

Types of business strategies according to the level of management also presented the company's business strategy (business), which provides long-term competitive advantages of business units. It is embodied, as a rule, business plans, and reflects the facts about the competing of the enterprise within a particular commodity market (target segment, price and marketing policies, competitive advantages, etc.). In this regard it is also mentioned, listing the types of competitive strategies. For organizations engaged in one activity, corporate strategy is identical of the business.types of competitive strategies

Functional strategies developed by the functional services anddepartments of the company on the basis discussed above (financial, industrial, grocery, marketing strategy, etc.). Their goal – resource allocation services (the Department), the search for effective behavioural rate the functional units in the overall strategy. An example within the marketing Department – concentration on finding ways of increasing the volume of sales compared to the previous period.

Innovation strategy: interpretation, types

This model of firm behavior in certain market conditions. The strategy – one of the management tools. Based on the behavioral aspect and the content, there are the following types of innovation strategies:

active:

A) technological leadership (development of new product and technology, investment in R & d, advanced management models, even in high-risk situations);

B) follow the leader (the use of products developed by other companies technologies);

C) copying (organization of production based on purchased from leader or developer licenses);

G) dependence (simulation of a new product).

passive.

Innovative strategies can also be classified by scope:

  • Aimed at a certain niche;
  • Focused on a specific market;
  • Aimed at several markets;

The contents there are the following types of innovation strategies:

  • Technology;
  • Information processes;
  • Business models;
  • Social change.

The Starting point – the mission (wording ideas, of which the firm was created). It is based on developed the overall strategy of the company.

All of the above types of innovative strategies have the following initial stages:

  • Evaluation of the existing external environment of the company;
  • Characteristic features of the internal environment (scientific, technical, innovative potential, etc.).types of innovation strategies

Variety of marketing strategies

They can be classified according to the following guidelines:

1. In relation to the scale of the market:

  • The strategy of conquest (new product development, consumer motivation, the development of new areas of consumption of old products);
  • Expansion strategy (increase in volume of output, the conquest of new market segments);
  • The monopolization of a segment (search target group, where there is no competition, creating a new product for them, consumer motivation in this segment);
  • Hold its market share in all target segments (the development of a full range of goods of the appropriate type).

2. The fundamental factor that ensures the demand, we distinguish the following types of marketing strategies:

  • High-demand items (focus on manufacturing the necessary majority of consumers of the goods without reference to group membership);
  • High quality product (emphasis on the maximum among the proposed market for this product the quality of products);
  • Price level (relative to the pricing of manufactured products, which are available to most);
  • Innovation (the creation of product that has no analogues);
  • The commitment of buyers (landmark – full satisfaction of existing customer needs);
  • After sales service (emphasis on after-sales-service);
  • Additional cash benefit (credits, discounts, rebates, installment).

3. According to the degree of development of marketing policy, identify the following strategies:

  • Adaptation to the demand (market research, determining consumer demand, creating a product that meets the needs);
  • The creation of demand (the formation of the idea of the product, its development, stimulating the needs of customers created the product).

4. In response to existing market processes distinguish the following types of business strategies (marketing)

  • Adaptation to occurring changes (monitoring of the current state of the market and rapid response to change);
  • Forecast (early transformation on the basis of the made forecast).

5. The reaction on the dynamics of the market marketing strategies are classified as follows:

  • Adjustment of production volume (decrease or increase output based on changes in consumer demand);
  • Change range (improvement of the product and its variations, modification, creation of substitutes);
  • The change in prices (correction of pricing policy);
  • Change sales channels (the use of different kinds of sales).

6. In relation to the product it is accepted to distinguish the following types of organizational strategies. (marketing)

  • Innovation (creating new products, the company's commitment to leadership in the relevant market);
  • "second place" (follow the leader);
  • Improvement of the competitive products (change or refinement of competitive products by supplementing their benefits).

Staffing strategy: definition, types

This is a development management team preferred and most effective lines of action that contribute to these long-term goals as the creation of a highly skilled, cohesive, responsible team, subject to the existing strategic objectives of the company and its capabilities.types of personnel policies

It is Customary to distinguish the following types of personnel policies:

  • Business;
  • Dynamic growth;
  • Profitability;
  • Liquidation;
  • Cycle.

According to most of the leading firms, HR strategy – part of an overall economic as well as a result of forward planning of economic activities of companies.

Summing up, it is necessary to reiterate that the principal competitive strategies – leadership in the field of cost, focus and differentiation.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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