As years passes businesses are growing. With that competition also grows in number and complexity. To attract maximum number of customers businesses are providing goods/services with cheaper price and in attractive packages. And spending more on different advertisements.
Are these common tactics enough to sustain your business? What are the effective strategies you could follow to assure a sustainable growth of your business?
A plan intended for a long term result is the simplest meaning of the word strategy. People are different, some people are proactive and some are reactive. Strategies are proactive. Those people who could realize own strengths and utilize it effectively, identify own weaknesses and convert it into strengths, forecast the future threats and make plan to overcome that threats, and recognize the future opportunities and act according to that can sustain their business successfully. To identify these things entrepreneurs should develop a skill to analyse their business environment.
There are two type of business environments. ‘Internal environment’ and ‘External Environment’. Internal environment mainly consist of employees, owners, organisation-culture, customers and competitors etc. Since these factors are analyzable from the organisation itself, internal environment analysis are common among most entrepreneurs. Many of them are not formal. Even though from this internal analysis they could identify the strengths and weaknesses of their organisation. But analysis of external environment is a bit more difficult and crucial for the sustainability of an organisation. Because it consist of factors like Political, Economical, Social, Technological, Environmental and Legal.
A slight change in the external environment may even lead to an end of your business. Nokia mobile phone is a best example for this. They lost their market because of not judging the effect of new mobile operating systems like android (change in the technological environment). Examples like these are many, typewriting institutions are one of them. A good entrepreneur could identify threats like these and change his business accordingly for the sustenance of his business. Entrepreneurs who changed their typewriting institutions into computer training institution and later into Internet café are still sustain their businesses in the market. Demand for internets cafes are falling, because business environments are changing, so continuous and smarter strategies are very crucial for any business.
Author: Savad, PGDBM (Edxel-UK), works as Junior Business Analyst at Ameen Ahsan Strategy Consulting.
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