The most profitable businesses have well thought out and executed strategies, said Dr. Francisco Vélez, professor at CETYS University
Mexicali, B.C.- Creating and rethinking business strategies represents, for companies, an important opportunity for growth, continuous improvement, and staying current in the market, said Dr. Francisco Vélez, Coordinator of the College of Business and Administration at CETYS University System and professor of the CETYS Graduate School of Business.
According to what the academic said, being more competitive is an obligation for any business, regardless of its size. Therefore, companies must take into account their strategy, the strengths and added value they provide; that is, what makes them different from their competition. “The most profitable businesses have well thought out and executed strategies.”
On the other hand, the business strategy must be based on the rationality and reality of the company, after analyzing in detail aspects such as: Where it is, and where do you want to go?
In addition to responding to how to: satisfy customers, respond to changes in the markets, beat the competition, grow the business and develop organizational capacities among its employees.
Taking into account the above, Dr. Vélez, suggests putting into practice seven tips to increase the competitiveness of business strategies:
– Tip 1.- Innovation: Although doing things as they have always been done works, does not mean that it is the only way to achieve them, so the company that has the ability to reinvent itself and adapt its business model, chain process from supply and logistics of services, to new business scenarios, will be more competitive and spearhead in their commercial turns.
– Tip 2.- Be an ally of your client: It is important to listen to your consumers, the more you know them in terms of tastes, shopping habits, trends, and lifestyle, you can collect that data, which will facilitate decision making within the strategy. Remember: information is power.
– Tip 3.- Capture value: There are two types of competitive value, one is “what you do costs less to the consumer” and the other “what you do is different”. We will have to bet on the latter, one way to improve is to pay attention to the product value chain (from the creation of the product to the after-sales service).
– Tip 4: Strategic thinking: Today, businesses are going through a time of disruptive changes with greater speed, so be at the forefront in terms of short life cycles (product and design), to new technologies, the frequent and unexpected entry of competitors, and the redefinition of the borders and markets or industries are key.
– Tip 5: Effective leadership: Any strategy will be accompanied by good leadership, which motivates human capital to meet objectives. This leader will have to be visionary, humble, complete, promote sustainability in the processes and be reflective.
– Tip 6: Structuring: The integration of talent and human capital into companies is an indispensable factor, within a business strategy, so constantly analyze the skills of employees and that these are consistent with the work they perform in the company which will add positively to the value chain.
– Tip 7: Perseverance and work: The key to success in any company is the ability to lead others effectively to work and wear the shirt of the project.
The most efficient way to organize human activity and meet needs is through the existence of companies. “In the new competitive scenario, operational effectiveness is important, but strategic positioning is more important,” concluded the coordinator of the College of Administration and Business at CETYS University System.