In a world where business innovation is key to the survival of any company, identifying the right strategy for your business can be quite a challenge. Many times, business leaders find themselves looking for methods to stay competitive, but they find themselves overwhelmed by the sheer number of options available. Therefore, in this article, we share with you a categorization of business strategies based on the Harvard Business Review article “All Business Strategies Fall into 4 Categories”. These strategies, applied with the appropriate focus, can make a difference for any organization.
Adaptations of successful strategies
What does it consist of?
The first business innovation strategy focuses on taking tried-and-tested models in your industry and significantly improving them. This approach requires acute observation and optimization capacity.
Companies like Zara and H&M release 500 items each week, Shein has taken this strategy to the next level, introducing 1000 items each day and at a cost of 30-40% less. By focusing exclusively on digital channels, Shein has managed to avoid the costs associated with physical stores, which has allowed it to grow exponentially in the competitive fashion market.
Image courtesy of Investment Monitor.
Key benefits:
- Lower risk based on tested models
- Faster implementation
- Incremental improvement but significative
Import strategies from other industries
Another way to innovate is to look beyond the frontiers of your sector and adopt business models and strategies that have been successful in other industries. Sometimes, a solution that seems to work alone in a specific context can adapt and succeed in a completely different one.
Hilti, a tool manufacturing company, faced a saturated market and decided to implement a leasing model similar to that used in the automotive industry. With this strategy, users pay a monthly subscription, which allows them to access the latest tools at a more affordable cost. This approach radically transformed its business model and allowed it to stand out in an increasingly commoditized market.
Image courtesy of Hilti.
Advantages of this strategy:
- Differentiation in saturated markets
- New sources of recurring income
- Improve customer relations
Combination of strategies from multiple industries
True business innovation often emerges when successful strategies from different sectors merge. This technique can give rise to completely new products and services that satisfy needs in unique ways.
Spotify is a great example of how combining ideas from different industries can create something revolutionary. By uniting the concepts of a social network and music streaming platform, Spotify on the ground allows users to listen to music, but also connect with friends and artists, creating a unique and highly valued user experience.
Photo of Heidi Fin on Unsplash.
Success factors:
- Creation of added value
- Satisfaction of multiple needs
- A more significant differentiation
Strategies created from scratch
Finally, the most challenging and most creative category is developing completely new innovative strategies based on fundamental principles. This involves questioning established standards and breaking down problems into their basic components to create innovative solutions from scratch.
Elon Musk with SpaceX Instead of accepting the high costs of those costs as something inevitable, Elon Musk asked himself why they were so expensive. After discovering that the materials represented only a fraction of the total cost, he decided to produce more affordable items, purchasing the materials on the commodities market and building them from scratch. This approach has revolutionized the aerospace industry.
Impact on industry:
- Significant cost reduction
- Democratization of access to space
- Revolution in the aerospace industry
Keys to Success
In today’s dynamic business environment, fast and efficient implementation is crucial. Consider these factors:
- Evaluate your resources and capabilities
- Start with pilot tests
- Measure results constantly
- Adjust according to the feedback received
The best strategy is the one you can implement quickly
In today’s fast-paced business world, the key is not just identifying the correct strategy, but being able to implement and evaluate it quickly and economically. Not all companies need to reinvent the street; Sometimes, small adaptations can have a big impact. The important thing is to always be open to new ideas and approaches.
Do you want to know what is the best strategy for your business?
At Blaster, we can help you identify and develop the most appropriate strategy so that your company prospers. Contact us today for personalized advice and start innovating effectively!
