QS Study

Importance of Strategy in this age of business competition

Strategy means the skill of managing any affair. It is used to describe a pathway along which the organization moves towards its goals or objectives. Actually, it is an action plan for maximizes one’s strength against the forces at work in the business environment. There are some reasons for which a company or business uses strategy. The reasons are as follows:

To face competition: This is an age of competition. No business or organization can survive without facing the competition successfully. Strategy helps a company to face such competition.

Elimination of risk and uncertainty: Risk and uncertainty are available in every business or organization. In order to eliminate such risk and uncertainty, a company can take the help of strategy.

Solution to unexpected problems: Problems can arise anytime and anywhere in an organization. In order to solve such unexpected problems, a company can take the help of strategy.

Solution to complicated problems: Strategy plays an important role to solve the complicated problems of an organization. In fact, the strategy is invented to solve the complicated problems.

Solution to internal and external problems: Strategy not only solves the internal problems but also solve the external problems of an organization. As for an example, SWOT analysis helps a lot in this regard.

Aids to implement policies and objectives: Strategy helps achieve the predetermined objectives of an organization through implementing the plans and policies effectively and efficiently. It ensures the overall success of an organization.

Establishing discipline: No business or organization can be successful without the following discipline properly. The strategy provides proper guidelines to establish discipline in an organization.

Successful survival: This is an age of competition. If a company wants to survive successfully, it will have to take the help of a new strategy frequently with the change of situation.

Matching resources with a probable opportunity: The success of a company mostly depends upon the successful matching of its resources with its probable opportunities. The only strategy can ensure it.

Facing the future environment: the Future environment is always uncertain. Any situation can arise at any time. Strategy helps to face such changing environment successfully.

So, these are the various reasons for using a strategy.