Types of enterprise development strategies

The strategy is a preconceived comprehensive plan that is necessary to achieve the objectives of the enterprise and fulfill the mission. Most often, the strategy is developed by the top management of the enterprise, which helps managers of different levels of management. Types of strategies are very diverse. Each of them pursues certain goals, therefore it is used only when it is really needed. Consider the main types of strategies that are most often used by enterprises to achieve their goals.

Types of enterprise development strategies

Strategies for opportunities in markets / goods

· Product development - effective when the enterprise enjoys great popularity among consumers. Here you can try the following: to use standard (traditional) means of marketing, to do in advertising the emphasis on the fact that new products are better than old ones, more emphasis is placed on new models that are closely related to products already implemented.

· Deep penetration to the market - the most effective when the company operates on a familiar, not supersaturated commodity market. The main thing here is to reduce production costs. Here you can use: intensive advertising, discounts, benefits, establish control over the work of competitors, sell goods at a lower price than competitors.

· Market development - effective with the expansion of the market, with the emergence of new areas of application of popular and well-known products. The actions of the enterprise can be as follows: penetration into regional markets, the desire to increase the sales of existing products in the markets, enter new market segments where the demand is not practical, and use more energetic efforts to promote the goods.

Integration strategies

· Progressive - implies the growth of an enterprise through the acquisition and use of crops that are between the producer and the end user.

· Regressive - involves the growth of the enterprise, which will be implemented through the acquisition of new raw materials and the creation of subsidiaries producing supplies.

· Horizontal - the activities of the company are directed at absorbing competitors or establishing more stringent monitoring of their activities in the market.

Diversification strategies

· Horizontal - the search for ways to grow in the existing market by promoting new products that differ from those used. In this case, the new product should be intended for former customers.

· Conglomerate - expansion of the enterprise through the production of products that are not technically related to previous products.

· Concentric - the search or use of existing in business additional tools and opportunities for the release of new products, goods and services that are similar to already existing products, goods and services of the enterprise.

Continuing to consider the types of strategies, let us pay attention to the following:

Strategies in relation to the product

· Low costs - directs the company's management to mass production of goods, due to which it is possible to reduce prices and minimize costs.

· Concentration - directs management to work with unique or highly specialized goods, services, products.

· Differentiation - is the issuance of an attractive product by the enterprise, which will interest consumers. In this case, the product is produced in several modifications, i.e. Different design, quality, packaging.

Strategies for small businesses

· Optimal size - is used in those business areas that bring a small profit to large enterprises.

· Copying - directs small businesses to produce products that will be an inexpensive analogue of high-quality and expensive products of well-known manufacturers.

· Using the advantages and advantages of a large manufacturer - an example can be franchising - a contractual relationship between a small and large producer, in which a small producer has the right for a certain time to use the trademark of a major manufacturer, use its technologies and equipment.

· Participation in the product of a large producer is the fact that large companies, engaged in the production of complex products and passing all production stages independently, need small-scale production, which is not always efficient and payback. That is why it is more profitable for a large producer to stop small-scale production and simply buy products from the latter.

Reduction strategy

· «Harvesting» - refusal from long-term participation in business in order to get large incomes in the short term.

· Liquidation is a "union" of enterprises, when one of them is liquidated in order to reduce costs when working together.

· Partial cost reduction is a temporary short-term measure aimed at reducing production costs, reducing staff and hiring, reducing production of goods when a likely threat of crisis occurs.

· Partial reduction of units - sale or closure by the enterprise of unprofitable, unpromising divisions. The main goal is to get funds for the development of a more promising business, the introduction of innovations, etc.

Thus, types of strategies are a powerful tool for the development of any, even the most failed enterprise. It is due to their diversity that you can choose the most appropriate strategy for getting out of this or that situation. Types of strategies allow an enterprise to bring its new products to the market, successfully organize the sale of old products, introduce new technologies into production, in a word, to profit from where it has not previously been possible to extract.