5 Business Strategy Examples To Inspire Yourself
Successful organizations do not just plan their business strategies based on financial goals and profit margin; they prioritize consumer value, innovation, etc., to develop a successful business strategy. A wholesome business plan helps the company achieve its marketing, financial, operational, and other goals. A business strategy also aims to provide a competitive advantage to the company.
There are many different types of business strategies. A company may use one or a combination of different strategies to match its goals. Successful businesses have a well-defined strategy but keep changing according to the new updates and innovations in business processes.
Top Business Strategy Examples
An effective business strategy is vital for organizational success and outperforming in today’s competitive marketplace. Let’s look at some top companies and their business strategies that allowed them to exceed their business goals and perform excellently in the market.
1. Apple
The most prestigious name in the market, Apple’s business strategy focuses on delivering a unique consumer experience. The company’s elite product offering, and competitive advantage are known worldwide. Their business strategy focuses on innovation, design, and supreme functionality. Apple has always created different products and services. Their simple but appealing design, superior customer experience, and ultimate use of cutting-edge technology have created a special place for Apple products in the market.
Apple also focuses on the ‘availability’ aspect as a critical part of its business strategy. The company has numerous stores in strategic locations worldwide. These stores create more brand visibility and enhance accessibility, contributing to client loyalty. Besides prioritizing their iPhone and MacBook sales, Apple’s services sector has also generated record-breaking sales. Apple’s business strategy also includes ecosystem development, diversification, etc.
2. Tesla
Tesla positioned itself as an expensive and elite brand. Tesla’s business strategy focused on assessing the problems, controlling the production and supply of spare parts, and building cars that can demonstrate future technologies. Tesla’s long-term goal is to become the largest car manufacturer in the world. They also know they need to increase the volume substantially and enter the lower-end consumer car segment.
Instead of creating economical, low-featured electric cars, Tesla created luxurious and expensive cars like the Tesla Roadster. This differentiation strategy worked in their favor. Tesla has also ensured success in making mass-produced and affordable electric cars. They have been making great annual profits. Also, Tesla’s supply chain strategy was very effective. They invested in battery manufacturers, a key component for electric cars.
3. PayPal
The banking system is not easy to enter. It needs capital, government approvals, customer trust, and more. PayPal has truly succeeded in its endeavor. Their business strategy focused on creating technical superiority, gaining customers’ trust quickly, and conducting analytics. The company also keeps launching various payment innovations. Their international business strategy with internet payment systems like eBay, a big team of partners, and more has helped them have a share of more than half of the total transactions in the market.
4. Starbucks
Starbucks is known to be the world’s largest coffeehouse chain. They adopted a value-based strategy to make it big in the market. In 2008, Starbucks faced losses due to increasing competition, rising food prices, global coffee trading strains, etc. Then, the company started focusing on the company’s WTP. They started to develop emotional connections with their customers. They launched “My Starbucks Idea”, where customers exchanged ideas about Starbucks’ CSR, products, services, stores, etc. This helped the company know what creates customer value. Accordingly, the company changed its business model. They implemented free Wi-Fi, lounge chairs, and a rewards program based on customer feedback, making Starbucks what it is today!
5. Airbnb
Airbnb had a disruptive technology that shook up the travel industry. Airbnb, one of the largest tech companies, had launched an IPO in 2020 and reached an excellent valuation. You may not know that it was a small tech company before! Beginning with renting three mattresses on their apartment’s floor, the founders later launched a website inviting people to list them for hire. With loads of new bookings, plenty of listings, and site traffic, the founders struggled due to the low quality of listings. They worked on capturing high-quality photographs of listings. Their ‘scalable’ strategy initially focused on professional pictures and then moved to educate owners about how to take quality pictures of their property. With this strategy, their sales increased massively. Airbnb focuses on products, removing the fear of staying with strangers.
Wrapping up
Business strategy is essential to the success of any business. It makes future decisions about the company’s direction and steps to achieve long and short-term goals and gain sustainable competitive advantage. These were examples of top organizations using effective business strategies to sweep away the market share and achieve a competitive edge!
