Strategic planning is critical for the growth, development and continued sustainment of any business.
Devising acute strategies pertaining to business-critical operations and proactive planning are necessary to navigate market challenges, stay ahead of the competition, deliver the best possible service to clients & consumers and forging a path forward.
Strategic Business Planning: Some Essential Details
Strategizing for business planning is a crucial aspect of strategic management. Construing the perfect plan for sustained growth & development can occur at all three levels of a typical large scale business, the Corporate Level, the Business or Divisional Level and the Functional or Departmental Level.
Different kinds of businesses strategize their business plans differently.
- For MNCs and mega-corporations, the blueprint of corporate strategic planning is simple & straightforward.
- Management uses a timeline of several years to reassess implemented business strategies in light of company objectives, specific performance parameters and current market scenarios.
- Potential threats and opportunities are investigated, and available strengths, resources, capabilities & weaknesses are analyzed.
- Alternative strategies are crafted, and existing processes are modified against the organization’s long–term objectives.
Implemented strategies are then fleshed out in terms of action plans to be conducted shortly.
- For MSMEs, strategic planning is a much more contiguous process and conducted much more frequently. Owners, managers and supervisors engage in frequent discussions to resolve strategic issues and plan proactively for what’s up ahead.
The goals remain, in every case, stay the same. However, the planning processes, the implementation of planned business strategies and the strategies themselves differ across businesses & industries.
And, the perfect amalgamation of effective strategies at all levels is crucial for the success of a business.
Below are some examples of effective business strategies implemented by successful enterprises across industries.
The Best Business Planning Strategies Of This Era
PayPal –Challenging The Status Quo
It isn’t easy to disrupt any industry. The banking sector is one such industry that’s age-old, has an overbearing influence on other sectors and almost impossible to displace or challenge.
PayPal, however, did not care about anything of that sort. They circumvented the restraints of economic and financial policies & associated regulatory approval to become one of the most favored payment methods of people across countries.
From imported goods to payments for professional coursework help, PayPal is a favorite amongst the masses.
PayPal’s bold moves and strategies involve:
- Becoming a self-contained method of payment unto itself
- Minimal charges
- implementing the latest in payment processing technologies,
- gaining consume trust due to a lucid payment system
- global availability
- referral systems
- Strategic partnership with retailers & merchants
Through a sheer stroke of luck and some bold strategies, PayPal is the most significant payment gateway in the world in 2021.
HubSpot – Innovation To Create & Dominate
HubSpot is an authority in inbound marketing, one of the primary constituents of the digital marketing industry. Now, did you know that the company was the one that laid the foundation of the very sector which it now dominates?
The company introduced the idea of inbound marketing, an extremely cost-effective digital marketing method, which focuses on delivering value through quality content to engage & convert visitors without paying any hefty sum to any third party. Inbound marketing has been the savior of many small-scale businesses out there.
From local retailers to academic writing services, businesses of all shapes & sizes utilize inbound marketing to connect & convert better.
HubSpot innovated and then monetized the idea of inbound marketing successfully to build a business with a valuation of $22.14 billion.
Key-Takeaway: HubSpot’s business planning strategy is something extraordinary. They created a new type of marketing called inbound marketing. They then employed inbound marketing to market their business, where they sold a platform that allows other companies to implement inbound marketing effectively.
That’s a perfect example of an ingenious business planning strategy.
Tesla – Playing The Long Game
The creator and owner of Tesla, South African billionaire Elon Musk, envisioned a company that will change the future of human society.
With that aim, he entered the field of environmental-friendly technologies and energy generation, intending to change it in his way.
Conventional startups come into the market with a ‘Minimum Viable Product’. A version of their product that comes at a low price is bereft of additional features and showcases only the primary functionalities.
Tesla turned this particular market entry strategy over its head by introducing an absolute beauty of car model with luxurious sports car features. The Tesla Roadster, an all-electric vehicle, is available at $200,000 for the base model in 2008. This was the first car the company ever made.
Instead of capturing the market with low-priced models, Tesla implemented an unconventional business planning strategy to establish them in the market. Fast forward to 2021, and Tesla is now the most valuable car manufacturing company in the world.
Now, that’s some strategic business planning for the long haul.
Key Takeaway: Tesla’s unconventional strategy succeeded due to the peculiar nature of its product. The technologies and resources are necessary to mass-produce the Roadster put outsourcing & partnerships out of the question.
The company took complete control of the supply chain to reduce & remove bottlenecks. And, the face of the brand, Elon Musk himself, used his sway to get the attention of major investors.
Tesla was thus able to successfully implement an unconventional market entry strategy to maximum effectiveness.
Toyota – Patience, Humility & Continuous Improvement
Toyota is one of the most valuable car manufacturers in the world today. It took the American car industry by storm by first importing its cars from Japan and then making them right on US soil. In addition, the company confounded its US competitors by consistently releasing cars cheaper than them.
The company honed its manufacturing processes to the optimum efficiency and implemented the strategy of continuous improvement. The company remained humble when it entered the American market and closely studied major manufacturers such as Ford, GM, etc.
They learned the processes of their US counterparts and combined them with their own.
Today, Toyota is one of the top three carmakers in the USA and the world.
Key Takeaway: Instead of pulling off some bold, multi-million dollar move, Toyota was patient, humble and strived to become better than the competition. It studied the strengths of its competitors, analyzed its weaknesses and improved itself to become the undisputed leader.
Patience, humility and self-improvement were the key ingredients of Toyota’s successful business planning strategy.
And that rounds up this article. Hope it was an engaging & learning experience for all readers alike.
Author-Bio: Ron Thomson is a professor in a management school in Oregon, the USA. He is also a part-time tutor and academic writer at MyAssignmenthelp.com, one of the USA’s largest online math assignment help services.