A business strategy is necessary for every business to stay ahead of competition. It involves huge investments to build a sound business strategy but the payoffs are hugely offset the investments. To build a good business strategy, we need to do the following activities:
In-dept knowledge of industry is necessary to build a good business strategy. This involves identifying various stakeholders that form the value chain, the interests of each stakeholder and their dynamics, various industry offerings, associated compliances etc.
In-dept analysis if the competition in the market is necessary. This involves identifying various categories of players and their offerings, how each category player distinguishes themselves in the market, identifying the dynamics of the competitive market etc.
A good business strategy requires good understanding of the markets. This involves identifying various segments of customers, value proposition for each segment, product positioning and a mechanism to get a feedback from the customers and continuously evolve the strategy. It is necessary to identify any gaps within the current offerings, or any segment of customers that are not served, or underserved.
It is necessary to identify various new trends in the market, that enable building new business models, or reaching out to new customers, or creating innovative product offerings. This involves analysing various recent events within the industry or regulatory changes, if any, and trying to find out if they can be leveraged to create new differentiated offerings.