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| Five Areas in Your Business Strategy |
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There are primary areas in which your company can stand out from the others and various decisions to make within each one. These five areas that must be considered in building your business strategy, includes: 1. Product Basing your competitive advantage on product differentiation requires that your offerings feature attributes that make choosing your product a better option than any of the alternatives. Product differentiation requires in-depth knowledge of what your competitors offer and what is important to your market. 2. Distribution Be creative in considering your distribution alternatives, but be sure to conduct research to be sure your target will value your choice. How your get your product into the hands of your customer can be a significant advantage. With the rapid growth of the internet, more and more delivery options are available for many types of businesses. 3. Pricing As a start up, competing on price is difficult. The volume discounts go to the biggest buyers, so if there are any large competitors in your industry, it will be tough to beat them on price. Commodity products (where price is the deciding factor) are not a great option for a start up, especially your first one. If you plan to compete on price, be sure you can control expenses enough to turn a reasonable profit on a consistent basis. 4. Customer Satisfaction Competing on the basis of satisfying your customers can be very effective in the right industries. Major corporations across the board have moved away from customer service as a priority, and many consumers are willing to pay premium prices to be treated well. Be sure you have a clear understanding of the policies of your competitors. Avoid going overboard with guarantees or refunds -- a too lenient policy will cut into your bottom line. 5. Advertising If your competitive strategy is based on your advertising methods or message, be sure you include a substantial marketing budget in your start up plan. Some start-up have been very successful in picking up market share by targeting different market segments for common products |
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