Business Strategy: A Competitive Advantage

A business strategy is an essential element of any business, becoming a highly valuable tool throughout the years no matter the industry or scale. Whilst it is widely understood that a business strategy is a vital element of a business, many business leaders feel confused about what exactly a business strategy is and what it isn’t.  

A business strategy, in its simplest terms, is a set of guiding principles in which the long-term goals and objectives of a business are clearly laid out and planned for. These guiding principles help to ensure that the business and its leadership stay on track, and that all decisions made and techniques employed along the way are in line with the strategy. Acting like a roadmap, a strategy describes how a business plans to operate, what its goals and priorities are, and which actions must be undertaken to achieve its objectives.  

 

Nilesh Waghela, a retired independent business advisor, spent his career helping business owners to design efficient and effective business strategies. As such, Mr Waghela fully understands their role in helping a business to achieve its goals, as well as understanding the component parts that make up a full and thorough business strategy.  

A Focus on Competitive Advantage   

 

A ‘competitive advantage’ is the one thing that a business has that its competitors don’t have - in other words, it is the thing that sets a business apart. Having a full comprehension of a business’s competitive advantage is essential when writing a business strategy, as it will be the reason why the company exists and operates. A business’s competitive advantage is also the reason why customers will choose it over others, and therefore business leaders must be able to communicate, amplify and capitalise on this competitive advantage, making it the focus of everything that they do.  

Understand the Strengths and Weaknesses 

 

What used to be referred to as a SWOT analysis (strengths, weaknesses, opportunities and threats), a business strategy should include a thorough assessment of a business’s strengths and weaknesses. By examining these strengths and weaknesses, business leaders gain a critical understanding of a business, gaining insight into what it does best, as well as those areas where it struggles to compete.