Importance of Business Strategy with Two Commen Used Strategys

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Why strategy is Important A successful strategy is one which gives a company or organization to capture a competitive advantage. Johnson and Scholes define strategy as "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". Basically strategy exist in a company for trying to get long term direction and making the market scope for excellent business performance with competition as well as fulfill the expectations of stakeholders around the business. In this strategy game simulation, we have got three strategies as follows: Low price strategy: Low price strategy a relatively low price for a product or service, usually to create demand and acquire market share. This makes the most economic sense for the seller when there are significant economies of scale achievable from high volume production, or when the buyers are price sensitive and the seller has few competitive advantages. There are economical concepts that lower the price and demand will increase. In this global business that would always be true and practical. Price is only one factor in determining demand for products and services. Sometimes being the lowest priced product on the market can even have an opposite effect on demand. The company succeed where low price strategy exist often who have the following competence: Access to the capital required to make a significant investment in production assets; this investment represents a barrier to entry that many firms may not overcome. Skill in designing products for efficient manufacturing, for example, having a small component count to shorten the assembly process. High level of expertise in manufacturing process engineering.

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