What’s Your Startup Strategy?
We all talk about different kinds of strategies in running our small business. But do you have a single, unifying strategy that captures the essence of your business? With so much business jargon now, it confuses many entrepreneurs.
Believe it or not, almost all strategies you learned from reading and listening from business experts belong only to 3 categories. These are called the generic strategies by Michael Porter:
Cost Leadership Strategy
It’s all about providing the best price in the market given its leverage on manufacturing, competitive suppliers, or very efficient distribution channel. When Wal-Mart promises “Always low prices. Always,” it is very clear that they play with this strategy. It is very difficult for a starting small business to succeed in this strategy, but it does not mean you cannot beat low-priced competitors.
Differentiation Strategy
This is the playground of small businesses striving to make a mark in the industry. It is basically focusing on doing one thing better than competition. It can be your superior customer service or innovative products and technology.
Focus Strategy
This is commonly called niche marketing or specializing on a very small segment and dominating it. Your strong focus becomes your core advantage against mass marketing. You can also set higher prices here because of limited competition and your expertise in this area.
Strategy is just one the 13 functions you must act and take action on, according to know EdithYeung.com
