Strategic tips guide you through building an effective strategy to achieve your goals. It enables you to benefit from the summaries of the experiences of others.
Strategic tips are a set of guiding points that help you develop an effective strategy to lead your company towards success and excellence. It is a summary of the experiences and studies of specialists in the field of strategy. And if these tips are adhered to, you can avoid making many strategic mistakes.
An effective strategy is a strategy that enables the company to achieve its goals in the shortest possible time and at the lowest cost. Effective strategies have common characteristics that can be extracted and learned in the form of various strategic advice.
Given the importance of the topic, this article will provide you with the ten most important strategic tips for building a successful and effective strategy with explanation and clarification. let’s start
💡 Helpful Statistics About Strategy: ● 67% of well-formulated strategies failed due to poor execution. (HBR) ● 48% of leaders spend less than a day on strategy each month. (HBS) ● 61% of executives feel they are not prepared for the strategic challenges. (HBR) ● 77% of successful companies translate their strategy into operational terms and evaluate it on a day-to- day basis. (Palladium) ● 98% of leaders think strategy implementation takes more time than strategy formulation. ● 42% of managers and 27% of employees get access to the strategic plan ● 95% of employees do not understand their organization's strategy ● 84% of all staff members are clear on their organization’s top priorities
Table of Contents
The ten most important strategic tips for an effective strategy:
Experience over the years has shown that catastrophic strategies can be avoided by adhering to some strategy principles.
Lessons learned from past mistakes and successes of different companies and organizations. The strategy experts have extracted these lessons to arrive at the features of a successful strategy.
These lessons are presented as strategic Tips. These tips serve as a compass for developing an effective strategy.
The following paragraph lists the essential strategy tips:
- Giving priority to the strategy that enhances the company’s competitive position
- The strategy must quickly adapt to changing market conditions
- The best strategy which creates a sustainable competitive advantage.
- Avoid a strategy that can succeed only in the good situations
- Do not underestimate the actions of competitors
- Attack the weakness point of competitors
- It is necessary to be wise and prudent in reducing prices
- Seeking to fill the gaps which meaning value to the customer
- Avoid compromise strategies
- Avoid price war and backlash from competitors
This article will show you these strategy tips in detail. So that you can build any strategic plan and know it has good chances of success in achieving the company’s goals. let’s start
1- Giving priority to the strategy that enhances the company’s competitive position
The first tip is to give the highest priority to formulating strategic moves that will serve the company’s competitive position in the long term.
Because a strong competitive position yields consistently profitable results, in the long run, strengthening the company’s competitive position is one of the most important factors that protect the company’s profitability and continuity of work.
For more information, you can refer to the types of strategy and purpose of strategy articles.
2-The strategy must quickly adapt to changing market conditions
Market demands and customer needs are ever-changing. Therefore, the ease of adjusting the strategy to these changes is necessary and decisive in this era.
Therefore, always look to meet customers’ desires with better products and provide them with alternatives to block the way for competitors.
Also, you must track and control technological developments in production that may give you a competitive advantage and reduce your cost.
The delayed response often leads to unsatisfactory results. The competitors will catch up with your company and lose its customers because you did not keep pace with customers’ expectations, needs, and changing desires.
Therefore, the company should study any changes in the market and know their importance in developing its work.
Sometimes the company should turn a blind eye to some changes that are not useful or do not affect the company’s strategy, instead of chasing after changes of any kind.
3- Create a sustainable competitive advantage
Competitive advantage is the only essential element that can be relied upon to support your company’s profits and position in the market.
As a general rule, a company should conduct a strategic offensive to create a competitive advantage and a tough defense to protect it.
Competitive advantage is the only guarantee for a company to create above-average profitability. Without it, profitability will be low.
So creating a lasting competitive advantage is vital to the company, and a good strategy should focus on that.
4- Avoid the strategy that can succeed only in the good situations
Competitors are expected to use countermeasures to your strategy, especially when market conditions are not satisfactory.
So a good strategy works reasonably well and yields good results even in the worst conditions.
5- Not to underestimate the role of competing companies
The strategy that underestimates the reaction of competing companies to their movement in the market often surprises with unexpected and unthinkable things.
Competitors become very dangerous and ferocious when you push them into a dilemma and when you are seriously threatening their interests. Therefore, the strategy should not underestimate their reactions and prepare appropriate plans and procedures for that.
6- Attacking the competitive weakness of competitors
A successful strategy must attack the competitive weakness of competitors because it is usually more profitable and less risky.
A strategy that attacks the competitive strengths of competing firms is likely to fail Because competing companies in this aspect are more resourceful and better able to respond to the attack.
Also, you must avoid attacking the competitive strengths, especially if you do not have sufficient financial capacity and solid experience in this competitive advantage.
7- Wisdom and prudence in reducing prices
The strategy that works to reduce prices without being the company controlling the cost is sure that it will fail, even in the long run.
Only low-cost companies can follow this strategy and win in the long run.
8- Seeking to fill the gaps which meaning value to the customer
When the differences between your product and those of your competitors are not obvious, invisible, or unimportant, the strategy must strive to fill in the gaps representing value to buyers, especially if you adopt a differentiation strategy.
Therefore, you should not waste much time adding secondary features to your product or additions that do not represent a real value to the customer.
9- Avoid compromise strategies
Usually, the clear and significant competitive advantage makes the difference to the customer. So try to avoid strategies that offer you a middle ground between low costs and great advantage.
The compromise strategy rarely results in an enhanced competitive advantage or a distinct competitive position.
Usually, companies that use a middle-ground strategy with average costs, average differentiation, and medium reputation end up with a little prospect of market leadership.
In some cases, well-executed strategies with optimal cost are extracted since an appropriate compromise between low cost and excellence is successful in this case.
10- Avoid the price war and the violent reaction of competitors
A strategy that relies on violent movements to wrest market share from competitors often elicits retaliation and backlash.
This reaction may be in the form of a marketing race or a price war that may reach the point of damaging the profits of all parties.
Also, violent moves to seize a larger market share call for the launch of the bloody competition, especially when the market is affected by an increase in inventory and production capacity on demand.
Conclusion
Strategy is the main effective element in the companies. Without a strategy, a company is wandering in the desert without a compass to determine the direction.
Lack of strategy is a big problem. The biggest problem is the existence of an ineffective strategy or including fatal errors.
Given the importance of the subject, many studies and research have studied and reviewed successful strategies to find out the most important reasons for their success and failed strategies to find out the reasons for their failure.
These studies extracted tips; if your company follows these tips, it will have good chances of success.
Strategic tips are guiding points that help you develop an effective strategy that will lead your company towards success and differentiation. These tips are a summary of the experiences and studies of specialists in the field of strategy. And if these tips are adhered to, you can avoid making many strategic mistakes.
Among the most important of these ten strategic tips:
- Giving priority to the strategy that enhances the company’s competitive position
- The strategy must quickly adapt to changing market conditions
- The best strategy which creates a sustainable competitive advantage.
- Avoid a strategy that can succeed only in the good situations
- Do not underestimate the actions of competitors
- Attack the weakness point of competitors
- It is necessary to be wise and prudent in reducing prices
- Seeking to fill the gaps which meaning value to the customer
- Avoid compromise strategies
- Avoid price war and backlash from competitors
Therefore, you must follow these tips to be able to develop an effective strategy for your company.
