6 Business Strategy Examples
John Spacey, updated on March 21, 2021
A business strategy is an action plan designed to achieve a goal. Strategies differ from tactics, in that a strategy is a plan for the future and a tactic is a plan to handle a current situation. The future is uncertain. Therefore, strategies often make assumptions about future business conditions. The following are a few examples of business strategy.
1. Sales StrategyAn online retailer develops a strategy to offer a premium membership for a fee that will include free shipping on orders of any dollar amount. The strategy is designed to improve revenue since premium members will have incentive to order more often to take advantage of the free shipping. The strategy makes assumptions about future shipping costs and how customers will behave when they have unlimited access to free shipping.
2. Marketing StrategyA publisher of college text books develops a strategy to offer a number of free apps for mobile devices. The publisher is facing a customer backlash against the high price of text books and is hoping the free apps will improve customer relationships. The strategy relies on predictions that the apps will be popular with their customer base.
3. Information Technology StrategyA bank develops an IT strategy to implement multi-factor authentication for all its customer systems. The goal of the strategy is to reduce costly security and fraud incidents. The strategy makes the assumption that multi-factor authentication will be effective against future security threats.
4. Program StrategyA program management team develops a strategy to outsource a number of projects in order to transfer a number of project risks to an outsourcing partner. The goal of the strategy is to reduce overall program risks. The strategy assumes a number of things about outcome of the outsourcing arrangement. For example, it assumes that the outsourcing partner won't suddenly go bankrupt.
5. Human Resources StrategyA human resources department develops a strategy to improve performance reviews by requiring managers to seek feedback from the teams they manage. The goal of the strategy is to reduce instances of toxic behavior that has resulted in low employee morale and legal costs. The strategy makes the assumption that employees who have a toxic manager would be brave enough to criticize them in a formal review process.
6. Sustainability StrategyA courier develops a strategy to convert its entire fleet of delivery vehicles to electric. The goal of the strategy is to reduce energy costs and improve the sustainability of the company's operations. The strategy makes assumptions about future grid electricity and solar panel costs.
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