Running head: BUSINESS STRATEGY 1

Business Strategy

Name

Institution
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Business Strategy

In business, a strategy refers to long-term action plan designed to attain a particular goal

or set of objectives within an organization. In other words, it is a game plan created by

management to strengthen the overall performance of an enterprise. Therefore, a company must

follow the strategies it has set to attain the desired goals. While management has many functions

such as staffing, directing, controlling, and coordinating, creating a business strategy also forms

the basis of management. Companies create policies through their planning procedures. Lacking

a strategy is not a good idea, but not executing the laid plan is almost as worse. While money

words can be used to define the term strategy, all the paths usually lead to making more and

more money. When a business keeps increasing its revenues, it means that its strategies are

working (Prasad, 2015). Continuous generation of profits means that a strategy is adding value to

an enterprise.

One of the business strategies that top organizations use to make more money is

cornering a fledgling market. It is very common to see large business organizations attempt to

gain a stronghold on a particular market by adopting aggressive merger and acquisition activity.

For example, the purchase of Instagram by Facebook in 2012 is one those moves where a large

enterprise showed its grit in the market and helped in improving the profile of the involved

organizations. By 2014, Instagram hit over 150 million users a figure that was 120 million less

before its merger with Facebook (Prasad, 2015). On the other hand, the acquisition of Instagram

by Facebook made the organization one of the strongest social media sites in the whole world.

Another important business strategy that has recently benefited firms is product

differentiation. Such a business approach allows an organization to stand out on its own in a

highly competitive market. When consumers find it hard to identify your products, it makes it
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difficult for that particular organization to make substantial sales. One of the best examples of

product differentiation is the techniques Apple Inc. adopts while manufacturing its products. It is

important to note that the company's products frequently fetch high prices but still lead when it

comes to the largest share of the market owned. For example, the company's new Apple iPad Air

retails for $499, $200 more than that of its competitors but still attracts a large proportion of the

market because of its differentiation features such as lightness, display quality, software,

engineering, and ease of use (Prasad, 2015). It is worth noting that the organization spends

almost as half as the amount it gets while making its products. This is a case of obtaining

substantial returns on a good investment.

Another important strategy that adds value to businesses is to have a technological

advantage over the rivals. Some of the largest technology companies in the world such as Apple,

Google, Microsoft, and Samsung for a long time have engaged in war regarding acquisition and

hoarding of patents. The companies know that the organization that owns such patents will

ultimately have a technological edge over its rivals. Organizations also use pricing strategies to

increase the value of their firms. Walmart, being the largest retailer in the world to adopt low-

pricing strategies meaning that it would always have a significant market share as stated by the

law of demand and supply. Others like Apple Inc. price their products beyond the affordability of

ordinary consumers and in the process adding aspirational values to their products (Prasad,

2015). All these techniques enable the firms to make more money.
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References

Prasad, K. (2015). Strategic Management: Text and Cases, Second Edition. New York: PHI

Learning Pvt. Ltd.