A small firm may make use of multiple strategies to run its business. It mainly depends on the situation and the problem faced by the firm. For example, start-ups and new firms tend to face more challenges as compared to established firms. Besides, there are several stability issues that the former has to face during the initial period. Every firm has a different strategy to cope up with its problems. Some companies tend to apply different strategies as compared to their contemporaries. Others prefer to apply similar strategies but it entirely depends on the company.
There are four strategies which businesses usually prefer opting for. These strategies are discussed below:
Furthermore, if you do not sell something different from your contemporaries customers would not prefer your product or services. The most common example of this is smart phones. If your company does not offer the latest ios or android version people are less likely to purchase your company’s smart phones. One cannot forget that the shelf space of the latest models is limited because new technologies enter market every fortnight. On the other hand, if your research reveals that women are specifically your target audience you can have special offers for them on women’s day or daughter’s day.
Another way to apply product differentiation strategy is to find a unique way to advertise your product.
On cannot miss-out on the fact that this strategy only works if your product comprises of unique attributes which are not available elsewhere in the market. For instance, if you are the only company in the market that sells fastest running car in the country then you can use this strategy. The biggest loop-hole in this strategy is that your contemporaries easily get attracted towards competition.
An acquisition strategy leads you to the purchase of another company. In some cases, it results in the purchase of one or more products that belongs to another company. For instance, a small retailer at a particular place can purchase a comparable store at a nearby location to expand the business. It is important to carry out a mini research about the company or product before you carry out the actual acquisition procedure.
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