Huge Range of Business Strategies Available for an Entrepreneur

If you are an entrepreneur and you have figured out the general (or specific) business you want to engage in, there are still hundreds of strategic decisions to make. How you make these decisions is a function of what you learn when you perform a complete analysis of the competitive and market landscapes. The combination of all these decisions comprise your business strategy. A business strategy spans all aspects of a business, including:

  1. What product(s) you will sell
  2. What features your products will have
  3. How does your differentiation (relates to items a and b above) affect price
  4. What market(s) you will target
  5. How you will sell each product in each market
  6. How you will retain customers (i.e., sticky strategies)
  7. How your customers will “spread the word” (i.e., viral strategies)
  8. How many personnel you will need and how you will compensate them
  9. What other expenses you will incur
  10. How do your costs (relates to items 8 and 9 above) affect your pricing strategy
  11. What other factors influence your pricing
  12. How much cash you need and from where you will obtain it
  13. The growth vs. profits dilemma
  14. Other issues

In the next few days, I’ll post separate blog entries here on each of these subjects. Each subject will describe some choices of “strategic bits”. A complete business strategy would include at least one strategic bit from each subject. Although I will describe strategic bits as if they are orthogonal to each other, you should not consi­der them as such. Be innovative. Combine strategic bits in innovative ways to create entirely new busi­ness models. As you develop your strategy, it is important to realize that your strategy needs to be better than the compe­tition in some way: either better by design, or at least better executed. As pointed out so well by Kim and Mauborgne [KIM05] in their blue ocean strategy, the most successful companies find ways to create demand by inventing (or in some cases, reinventing) industries. Rather than going head-to-head with competitors (and furthering bloodying red oceans), they find ways to create entirely new products and/or attract entirely new markets. All one has to do is look at the industries that exist today that did not exist 15 years ago. Now, project forward 15 years from today: there will be dozens of industries that do not exist today. The start-up that is envisioned today in one of those industries of tomorrow is the perfect start-up of today.

The above is extracted from [DAV14].