The business world may well be the best model to illustrate the ferocity of war. However, business differs from war in that it is not about defending or competing for territory, but about fighting for customers and markets.

So what is a business strategy and how to build a business strategy? All will be in the article below.

What is business strategy?

A business strategy is a large-scale long-term plan of an enterprise or organization to orient and coordinate the activities of departments to achieve the set goals and expectations.

A business strategy should answer the following three questions:
- Where are we now? This is the step where you will conduct an analysis of the current situation of the business and the market to make a judgment about the current position of the business.
- Where do we want to go? This is the step where you will set goals and expectations for your business.
- How do we get there? This is the core point of the business strategy, this step you will come up with ideas, methods and stages and time to accomplish the set goals.

What is business strategy?

Key elements in a business strategy

1. Vision and goals

A business strategy is designed to help you achieve your business goals. Meanwhile, the vision will provide a clear direction for the business. Defining your vision and goals will help you develop action plans in your business strategy about what tasks need to be accomplished and what resources will be responsible for accomplishing them.

2. Core value

Business strategy guides leaders, as well as departments, on what to do and not to do according to the core values of the organization. Defining the organization's core values ensures that employees are on the same page and with the same goals.

Core Values at SanMedia

3. SWOT 

For any business, it is very important to understand strengths, weaknesses, opportunities and threats. This is the core point of any trading strategy. SWOT analysis helps you identify the right strategies based on the market situation and the existing resources of the business.

4. Tactics to deploy strategy

The tactical element of a business strategy outlines the activities and how to execute them in detail. Coordination of tactics is also crucial for the success of any trading strategy. This ensures that time and effort is not wasted.

5. Resources and resource allocation

Most businesses rely on a variety of resources: people, technology, finance, and facilities. Outlining an overview of future resources and requirements will allow leaders to see where to prioritize more resources to achieve their goals.

How to build a business strategy

1. Define vision

For any successful business strategy, the first thing to consider is the value and market position the company wants to achieve, in other words, the vision.

Vision is the foundation to build and develop the rest, defining the vision you will also know your positioning goals, target customers and the main market that the company needs to target.

2. Set goals

The second step you need to take to build a successful business strategy is to set strategic goals.

Strategic goals typically focus on revenue, profitability, market penetration, and shareholder value added. But these are just common denominators, which means that depending on your business situation, you will have different strategic goals.

Set strategic goals

3. Business and market analysis

Now that you have a vision and goals, the next step in your list of steps to build a business strategy is to analyze your business. And the SWOT model will be the key to help you with this.

Using strengths and opportunities to accomplish strategic goals as well as overcoming weaknesses and limiting threats are benefits that a SWOT analysis will bring you.

4. Define your competitive advantage

The fourth important stage of developing a business strategy is answering the question of how to achieve the objectives. In other words, how will you compete in your defined market.

Competitive advantage, also known as USP (Unique Selling Point), is the thing where you outperform your competitors.

5. Build a Roadmap of Action

The final piece of the puzzle to complete the business strategy table is to establish an action plan. Specific jobs will be distributed down to departments.

The action plan also closely follows the vision and goals set out in step one to avoid going astray.