Discover how to build a strategy that will help your business stay on track, optimize resources, and create a sustainable competitive advantage in a volatile market. Understanding strategy will help you not only map out a long-term development path, but also improve your ability to adapt to any change.
What is strategy?
Strategy is a long-term plan to achieve major goals and create competitive advantages in a business environment. Unlike short-term plans, strategy focuses on outlining the overall direction to help the organization develop sustainably, adapt quickly to changes and respond promptly to opportunities and risks from the market. Figuratively speaking, strategy is the "compass" that guides the business, helping all activities to move towards the same goal.
What is strategic planning?
Strategic planning is a long-term planning process for an organization, including market analysis, competitor identification, and growth model development. The goal is to create a common direction, helping businesses clearly identify the steps to take and flexibly adjust when there are fluctuations. The planning process is not simply setting goals but also researching and deeply analyzing internal and external factors that affect the business.
What is strategic management?
Strategic management is the process of implementing and monitoring strategies to ensure that the business is on track and achieving its goals. Strategic management includes the effective use of resources, evaluating the effectiveness of the strategy at each stage and making timely adjustments. In a metaphor, strategic management is like a pilot at sea, ensuring that the ship stays on course, avoiding collisions and taking advantage of opportunities to reach the destination faster.
Objective of strategy
The purpose of strategy is to provide a business with long-term direction, helping it achieve competitive advantage and optimize resources. Specific goals of strategy include:
- Setting the direction for the organization: Strategy outlines priorities and focuses resources on important areas.
- Create competitive advantage: Helps businesses outperform competitors.
- Adapt to the business environment: Respond to changes from the market, customers and business trends.
- Guidance for investment and expansion decisions: Strategy is the compass for long-term decisions.
3 levels of strategy in business
1. Corporate level strategy
These are strategies established by senior management to shape the mission, vision, and impact the overall long-term performance of the company.
2. Business level strategy
At this level, specific strategies are implemented for each business unit or division, defining how to compete and serve customers.
3. Functional level strategy
Departments such as Marketing , Human Resources, and Finance will develop their own strategies , but they must be consistent with the overall business strategy .
Characteristics of strategy
Systemic
Strategy requires alignment and consistency across departments, requiring a holistic and sustainable approach.
Comprehensiveness
A comprehensive strategy helps businesses both orient long-term development and effectively handle short-term problems.
Flexibility
Strategy allows businesses to adapt to changing environments, ensuring the ability to respond quickly to new opportunities or challenges.
Specificity and quantification
The goals and outcomes of the strategy must be specific and measurable to easily evaluate effectiveness.
Long term
Long-term strategy helps businesses orient their investment and sustainable development, but also needs to be balanced with short-term goals when necessary.
The Importance of Strategy in Every Business
Direction
Strategy provides clear direction, helping the team know its goals and responsibilities.
Effective
A clear strategy allows everyone in the organization to work consistently, helping to optimize resources and achieve high efficiency.
Proactive
Strategy helps businesses be more proactive in responding to changes from the market and competitors.
Durability
With a clear strategy , businesses can face and overcome fluctuations, helping to maintain long-term development.
5 elements needed in strategy
Purpose
The purpose is to help businesses focus resources on key goals, ensuring clear direction for all activities.
Strategic Scope
Scope defines the market, target customers and suitable products. Businesses need to clearly understand the characteristics of the market and target customers to develop the right strategy .
Customer value
The value that a business brings is the core of attracting and retaining customers.
Operating system
A system that works in sync between departments helps deliver consistent messages to customers.
Capacity
Identify business strengths to develop sustainable competitive advantages.
The process of building a top strategy
Step 1: Set goals
Defining clear goals is the foundation for building an effective strategy , helping businesses know what they need to achieve and in how long.
Step 2: Assess the situation
Businesses need to consider the external and internal environment to identify factors that affect strategy .
Step 3: Build a strategy
Based on the analyzed data, businesses need to clearly identify priorities and necessary resources.
Step 4: Implement the strategy
Ensure coordination between departments so that strategies are implemented smoothly and effectively.
Step 5: Evaluate results and adjust
Monitor and adjust strategies as needed, helping to better respond to changing factors from the business environment.
Distinguish between strategy and tactics
Strategy is a long-term master plan that covers the entire development direction of the business. Tactics are short-term actions that support the implementation of the strategy . If strategy is like the "flight path" of an airplane, then tactics are the "steering" and small adjustments to ensure the plane is on the right track.
Brand Manager – Specializing in Providing Strategic Marketing Services
For a marketing strategy to be well-built and effective, a business needs someone to lead, optimize and implement it properly. This is when the role of the Brand Manager - the person responsible for maintaining and developing the brand, becomes essential. The Brand Manager does not simply execute the strategy but also actively participates in shaping, improving and creating marketing campaigns that best suit the business's vision.
With strategic thinking, Brand Manager helps businesses achieve important goals, including:
- Brand Positioning: Brand Manager establishes consistent brand messaging, image, and values across different platforms, thereby creating differentiation in the market.
- Design and implement Marketing campaigns: Closely combine communication and advertising tools to ensure the overall Marketing strategy is implemented synchronously.
- Effective budget management: Based on the set strategy , Brand Manager monitors the Marketing budget and allocates it appropriately to optimize costs.
- Measure and evaluate results: Track key performance indicators (KPIs) to adjust, ensure the Marketing strategy is continuously improved and achieves the best results.
With acumen and strategic thinking ability, Brand Manager is the one who contributes to creating long-term value for the business and building a strong development foundation for the brand in a competitive environment.
