Commandments for crafting good Business Strategies

Question

What are the commandments for crafting good Business Strategies?

Answer 1

Ten Commandments for crafting good Business Strategies are as given below:

The 10 commandments that serve as useful guidelines for developing sound strategies include:

i. Place top priority on executing and crafting strategic moves that improves the company’s competitive position for the long term.

ii. Be prompt in adapting to altering market circumstances, unmet consumer requirements, emerging technological alternatives, purchaser wishes for something better, and new initiatives of competitors.

iii. Invest in creating a sustainable competitive benefit.

iv. Avoid strategies capable of succeeding only in the most optimistic conditions.

v. Don’t underestimate the commitment and the reactions of rival firms.

vi. Consider that attacking competitive fault is usually less risky and more profitable than attacking competitive strength.

vii. Be judicious in cutting prices without an established cost benefit.

viii. Strive to open up very meaningful gaps in quality or performance or service features when pursuing a differentiation strategy.

ix. Avoid stuck-in-the-middle strategies that symbolize negotiation between greater differentiation and lower costs and between narrow and broad market appeal.

x. Be aware that aggressive moves to extort market share away from rivals often incite retaliation in the form of a cost war.