1

Running head: Final Bus 200 Fall 2020

Final Bus 200 Fall 2020

Student’s Name

Profesor’s Name

Course Title

Date
 2
Final Bus 200 Fall 2020
1. Price skimming strategy

In the current business environment, there is no simple, universal formula to create a

successful business. This pricing strategy will allow the firm to set prices at a good profit markup

before competitors’ entry.

2. Cash flow growth and conservation

In simple terms, this means that the business should be as cheap as possible. To successfully

wade the obstacles and business challenges attached to the business’s formation and growth

stage, an entrepreneur must continuously monitor the cash inflow and outflow and ensure there is

a sustainable growth of the free cash flows (Teece, 2010). This strategy allows the firm to

survive unforeseen circumstances and invest in research and development for growth purposes.

3. Niche marketing strategy

To successfully earn the company a sustainable market share, niche marketing is vital. In the

formation stage of a business, it is paramount to avoid large markets and focus on niche

marketing. This ensures cost-effective marketing, high customer satisfaction, and a matching

brand image (Teece, 2010).

Using the above strategies, a successful company can increase its profitability by taking

the opportunity to maximize profit markup on their selling price in a new market before lowering

the prices due to competition. By continuously monitoring and growing its free cash flows, a

company can use the extra funds to develop new products through research. These products

increase a company’s portfolio generating additional revenues and profits. Finally, by

concentrating on niche marketing, a company can cut costs by effective marketing. Niche

marketing increases visibility that can be translated into business.

 3
Final Bus 200 Fall 2020
Reference

Dandridge, N. (2009). Small Business & Nonprofit Business Planning Guide. SSRN Electronic

Journal. https://doi.org/10.2139/ssrn.2190371

Teece, D. (2010). Business Models, Business Strategy and Innovation. Long Range

Planning, 43(2-3), 172-194. https://doi.org/10.1016/j.lrp.2009.07.003