Бесплатный фрагмент - Strategy 360. Become a master in business.

Strategy 360°: Become a Master in Business

Table of Contents

Author’s Introduction: The Wisdom of Strategy: How I Perceive Its Role in Business

— My Vision of Strategy

— What is Strategy?

— Book Objectives

Chapter 1: The Evolution of Strategy How the Boomer, Millennial, and Gen Z Generations Shape Business

— The Impact of Boomers on Business Strategy

— The Millennial Revolution: Strategies at the Intersection of Technology and Innovation

— Gen Z and the Future of Business: A Generation Focused on Values and the Environment

— Steps in the Evolution of Strategy

Chapter 2: Basic Principles of Business Strategy

— Main Types of Strategies: Differentiation, Cost, Focus

— Benchmarking: The Search for Growth Ideals

— External Environment Analysis: The Art of Anticipating and Acting

— In-depth Analysis of the Internal Environment

— Business Process Optimization

Chapter 3: The Strategy of Innovation and Technology

— The Role of Technology in Business Strategy

— Examples of Successful Technological Transformations

— How to Use Innovations to Strengthen Market Position

Chapter 4: Leadership and Decision-Making

Psychology of a Leader in Business

— Strategy in Conditions of Uncertainty

— How Personal Qualities Affect Company Strategies

Chapter 5: Marketing as an Element of Strategy

— How Marketing Can Be Part of an Overall Business Strategy

— The Role of Analyzing Customers and Trends

— Case Studies of Successful Marketing Strategies

Chapter 6: Risk Management

— Risks in Business and Their Minimization

— How to Adapt a Strategy in Crisis Situations

— Examples of Companies That Successfully Managed Risks

Chapter 7: Networking and Partnerships

— How Partnerships and Alliances Affect Strategic Success

— The Importance of Corporate Networks

Conclusion: Strategy 360° as a Path to Multifaceted Success

— Key Findings

— Practical Recommendations for Implementing a 360° Strategy in Business

The Wisdom of Strategy: How I Perceive Its Role in Business

My Vision of Strategy

For me, strategy is not just a set of decisions and actions, but a foundation on which everything is built. It is a key element that determines how a business will develop, adapt, and succeed in the face of constant change. Strategy is a clear understanding of what needs to be done today to be successful tomorrow. It answers the questions: where are we going, what opportunities are opening up, what threats should we consider, and how to effectiv

Strategy is the heart of a business. Without it, all other processes can operate at a superficial level, but will not be connected and directed towards a common goal. Like a mechanism, any business has a management system. It coordinates all elements of the organization, ensuring a balance between short-term and long-term goals, minimizing risks and allowing for informed decision-making in conditions of uncertainty.

I have repeatedly observed in my experience that, by applying a properly structured strategy, we and our teams not only stabilized the business, but also significantly changed its trajectory. We were able to rebuild entire companies that previously operated in survival mode, and now effectively generate profits. This is not just a theoretical process — it is real work with real results.

When we started applying a strategic approach in one of the companies that was facing financial difficulties, it allowed us not only to revise internal processes but also to identify new opportunities for growth. We began to use our resources wisely, focusing on profitable niches and optimizing costs. Six months after the implementation of the new strategy, the company was on the path to stabilization and growth, and a year later it had already reached a level of sustainable profit.

Every step, every decision that was made within the framework of the new strategy was justified and aimed at one goal — to improve the financial condition of the company and strengthen its position in the market. The inclusion of the team in the strategic planning process made it not just a performer, but an active participant in the changes. It was not just work on a plan, it was a collaboration aimed at results.

It was the structured strategy that gave us a clear route and a way to solve emerging problems. We could quickly adapt decisions in response to changes in the market, adjusting actions, but at the same time never losing sight of our main goal. This constant movement in the direction of growth, improvement and adaptation, based on a strategic vision, became the foundation of our success.

What is Strategy?

Strategy is a long-term plan aimed at achieving competitive advantages through the effective use of resources in an uncertain external environment. In a business context, strategy defines how an organization will achieve its goals and optimize its position in the market, taking into account changes in the economic, technological, and political spheres. Strategy is not a fixed set of actions, but rather a comprehensive and dynamic guide for decision-making that allows the company to adapt to changes and manage the risks associated with uncertainty. It is not just a way to achieve goals, but a continuous process of choice, which includes formulating the company’s mission and vision, as well as prioritizing, identifying key areas, and assessing resources.

According to academic research, strategy can be defined as:

— Competitive Strategy (Porter, 1980) — a set of actions and decisions aimed at achieving sustainable competitive advantage. It includes choosing how the company will compete.

— Analysis of the External and Internal Environment.

An essential element of strategy is the analysis of both external factors (economic, political, social) and internal factors of the company (resources, structure, competencies). This analysis allows us to determine what opportunities and threats exist for the business, as well as what strengths and weaknesses the company has. The main tools for analysis include PEST analysis, SWOT analysis, and competitive analysis.

— Long-term Goals.

Strategy focuses on long-term goals, such as increasing market share, sustainable revenue growth, improving corporate reputation, or expanding into new segments. These goals should be measurable, achievable, and aligned with the company’s overall mission.

— Resource Allocation.

Strategy involves making decisions about how to effectively allocate resources (financial, human, technological) to achieve the chosen goals. This also includes…

— Flexibility and Adaptability.

One of the key features of a strategy is the ability to adapt to changes in the market environment. A strategy should be flexible enough to respond to new opportunities and threats, while changing certain tactical approaches, but while maintaining the long-term goal.

— Competitive Advantages.

One of the central elements of strategy is the creation and maintenance of competitive advantages that will allow the company to favorably distinguish itself from competitors. This can be achieved through innovation, improving the quality of products or services, effective use of technologies and management processes.

Strategy is the basis for making all key management decisions in the organization. It serves as a guideline for resource allocation, investment planning, development of new products and entering new markets. In corporate governance, strategy provides a structure for coordinating the actions of different levels of management, ensuring a unified direction and focus on achieving long-term goals.

Strategy is developed by the company’s top management, starting from the CEO and up to the board of directors. In large organizations, special executives such as the Chief Strategy Officer (CSO) may be assigned to this task. These professionals, as a rule, work in close cooperation with financial analysts, marketers, and corporate risk experts to develop a strategy that meets both corporate goals and external market challenges. Strategic leadership requires a combination of in-depth analysis, understanding of financial and market factors, as well as the ability to predict future trends and changes.

Book’s aim

When I start to think about the importance of strategy in business, it immediately becomes obvious to me how important this element is for every entrepreneur. Strategy is not just a set of actions or a general idea of how to build a company. It is a conscious, deep understanding of what you want to achieve, how you are going to do it, and what risks may stand in your way. When you decide to create a business, you need not only to know what you want to get, but also to think about how you will get there.

Before taking the first step, it is important to understand in advance who you want to become and what kind of business you want to build in the long term. Without this clear understanding, you risk getting bogged down in the daily routine and losing sight of the ultimate goal. Awareness of your path and how you see your business in a few years helps to set the right priorities and make the right decisions at each stage. When I talk about strategy, I always mean not only action, but also deep analysis. Before starting, an entrepreneur should conduct a thorough risk assessment. Every decision you make will have consequences, and it is important to anticipate what could go wrong. Risks can be very diverse — from financial difficulties to problems with partners or changes in the external environment. This does not mean that you should be afraid of mistakes, but you must be prepared for them so as not to lose control in the event of unforeseen circumstances. The more you analyze and predict risks, the fewer unpleasant surprises await you in the future.

An equally important point is the ability to look into the future. Strategy is not just decisions for today, but also the ability to predict what your business will look like in a few years. You should think about how the market will change, what technologies will emerge, what new customer needs will arise. The more accurately you imagine the future, the easier it will be for you to adapt and make the right decisions today. Without this long-term vision, you risk getting lost in everyday tasks and not noticing how you miss opportunities for growth.

Moreover, strategy helps not only to predict, but also to choose the right path to success. When you understand what resources you have, how you will use them, and how your team will work, it becomes much easier for you to make strategic decisions. Coming up with a plan is only half the battle, its implementation is much more important. Strategy helps to create a system in which every action, every decision is aimed at achieving one common goal.

The most important role of strategy is to keep you from simply drifting along. It allows you to structure your actions, build clear plans and stick to them, despite difficult circumstances. Strategy helps to avoid the chaos that so often arises when a business has no clear direction. It’s not just a plan, it’s a kind of map that allows you to move forward, despite obstacles.

I always say that business is not just a start and success. It is a long journey full of changes, and in order not to get lost on this path, you need a strategy. It not only provides answers to the questions of what to do, but also allows you to understand how to act in conditions of uncertainty. It is strategy that helps an entrepreneur not only to survive in a competitive environment, but also to find a path to growth, to sustainable success, and to creating value for clients. This is the role of strategy — it becomes the tool that not only directs, but also helps to adapt, change course, and learn from mistakes. And if you want to build a successful business, you must start with a clear strategy that will support you at every step.

Chapter 1: The Evolution of Strategy — How the Boomer, Millennial, and Generation Z Generations Shape Business

The Influence of Boomers on Business Strategy

Knowing how business strategies have evolved with each new generation is not just an interesting fact. It is the key to understanding how and why today’s methods may or may not work in the future. Each business generation is a reflection of its era, its challenges and opportunities. The strategies used by the boomer generation, with their emphasis on scaling and standardization, provided answers to the questions that faced businesses in those years. But the millennial strategy was already focused on the rapid introduction of innovations and the use of technology, which led to new approaches in business.

Knowledge of these changes allows us not only to avoid past mistakes, but also to see how current trends can affect the future. Business is not a static system, it is a living organism that must change and adapt to thrive in the new realities. And understanding what strategies were effective at different historical moments opens new horizons for entrepreneurs, allowing them to project the future based on mature and proven solutions.

The term «boomers» originated in the post-war period when countries, especially the USA, experienced rapid population growth. This was a time when, after the end of World War II, there was a sharp increase in the birth rate, causing the so-called «baby boom.» As a result, by the 1960s, the term «baby boomers» appeared, referring to the generation born between 1946 and 1964. The emergence of this generation had a strong impact on the global economy, politics, and culture, including the development of business. A key moment for this period was mass construction, improved living standards and innovation, which shaped approaches in business strategies focused on large-scale production and standardization.

The boomer generation witnessed one of the most powerful shifts in the economy — the transition from traditional production models to industrial and post-industrial business. This was a time when the business environment began to transform massively, and strategy, as never before, became the foundation for successful development. In the context of rapid economic growth, the creation of new technologies and expanding markets, it was the boomers who began to develop strategies that allowed their companies to become giants, forming the foundation for future successes.

The basis of the strategy of that time was standardization and mass production. The transition from small family businesses to large corporations capable of serving millions of consumers required new approaches. Mass production, cost reduction, the introduction of a conveyor production system — this is what determined success in business.

Representatives of this generation set as their goal the achievement of maximum efficiency and stability, which was expressed in the creation of clear and long-term plans. In this strategic model, the survival of the business depended on the ability to adapt processes to changes in the external environment, reduce costs and focus on mass consumption.

One of the most striking examples is Henry Ford, who with his revolution in the automotive industry changed not only the industry itself, but also the approach to business organization as a whole. The introduction of conveyor production and standardization of cars made it possible to reduce the price, making them affordable for millions of Americans. This approach, focused on efficiency and scaling, became the basis for the strategy of many companies of that time.

However, the boomer era was not only about standards and technology. It also included important lessons about leadership, organizational structure, and corporate culture. The principles of strategic management, which have become an integral part of business practice, were focused on consistency, control and continuity, which allowed for the creation of powerful companies with stable market positions.

The boomer generation is characterized by a focus on long-term prospects. Strategic planning in their time became a mandatory practice to achieve stability and business growth. This was a period when companies began to develop multi-year plans, assess risks and develop forecasts for the future. The stages of implementation of such strategies were clearly defined, and business often planned for several years ahead. For example, General Electric, under the leadership of Jacob Smith, actively developed long-term investment programs, which allowed the company to become one of the largest corporations in the world. In such companies, strategic planning for several years ahead became the basis of successful growth and financial stability.

Today, these lessons are still relevant, but it is important to remember that, despite the success of past models, the business world continues to change. In the following chapters, we will see how the millennial and Gen Z generations adapted old approaches and introduced new, more flexible strategies that meet modern requirements and challenges.

Millennial Revolution: Strategies at the Intersection of Technology and Innovation

Millennials are a generation born between the early 1980s and the late 1990s who witnessed the technological revolution and globalization. Their uniqueness lies in the fact that they were the first to grow up in the era of the Internet, smartphones, and social networks, which leaves an imprint on their approaches to both life and business. Millennials have become not only consumers of new technologies, but also their creators, and this has predetermined their revolutionary approach to strategies.

This generation is characterized by a rejection of traditional business models and a drive for innovation. Unlike their predecessors, who built stable and predictable strategies with an emphasis on long-term stability, millennials have created a completely different style of doing business.

This generation values flexibility, the ability to adapt to changing conditions, and a willingness to experiment. Their vision of business is often built not only on the goals of making a profit, but also on the desire to change society, improve people’s lives, or, at a minimum, influence some global processes.

Features of the Strategic Vision of Millennials

Millennials have become pioneers of new approaches in business, where the key aspects are innovation, speed of adaptation and value orientation. Their strategies do not follow old canons, where only growth and profitability are important, but are focused on creating sustainable and technologically equipped companies that can be flexible and resistant to external changes.

Millennial entrepreneurs know how to integrate digital technologies into strategic management. Technology has become the most important tool in their strategies. In this new business reality, there are no «old-fashioned» methods for them. Technologies are introduced not just as additional tools, but as the basis of the business model itself. This approach combines the use of «big data,» artificial intelligence, automation and blockchain technologies to increase efficiency and predictability.

At the same time, they perfectly understand the importance of collaboration and networking. This generation actively develops and maintains cooperation with other companies, often creating business ecosystems in which they are not the only players. Millennials tend to work in teams, exchange ideas and create alliances with those who can offer something valuable and innovative.

Examples of Notable Millennial Business Leaders and Their Contribution to Business Strategy

One of the most notable representatives of the millennial generation is Evan Spiegel, co-founder and CEO of Snapchat. Spiegel has become an iconic figure by creating one of the most popular social platforms that has radically changed the way people communicate and interact. He understood that the future is not in text messages or photos, but in visual communication, which can become more organic and fast. With Snapchat, Spiegel demonstrated a strategy focused on innovation and a desire to break with traditional forms of communication.

An equally notable example is Jeff Bezos, the founder of Amazon. His strategic vision and ability to make Amazon the largest…

...the world’s largest trading platform became the result of a constant focus on customers, innovation and technology. Bezos is not only one of the most successful entrepreneurs of our time, but also an example of how important flexibility is in strategic planning, and how important it is to be ready to change your model under new conditions.

There are outstanding representatives of this generation in the CIS countries. An example of such an entrepreneur is Daniyar Abulov, co-founder and CEO of ChocoFamily, a leading online shopping resource in Kazakhstan. He brought to his strategy approaches that are ideally combined with global trends: the use of technology to create a convenient and fast service that changes people’s attitude to online shopping.

Strategies at the intersection of technology and innovation

One of the distinctive features of millennial strategies is their ability to operate at the intersection of technology and innovation. Understanding that technological transformation is not just a trend, but a real necessity for survival in the market, forces entrepreneurs of this generation to apply new approaches based on data and technology to create innovative products and services. These strategies not only create new business models, they destroy old ones forcing the market to adapt to more modern conditions. It is in the era of millennials that technologies begin to influence absolutely all aspects of business. Big data, artificial intelligence, the Internet of Things, automation are not just tools, but key drivers that allow the companies of these entrepreneurs to predict future trends, reduce risks and offer unique solutions for customers. For example, the use of artificial intelligence to predict customer preferences or blockchain technologies to ensure security and transparency in transactions has become common practice for companies focused on the future. Millennials know how to integrate technologies into business models in such a way that it not only helps to optimize processes, but also significantly improves the consumer experience, creating a new level of interaction with customers.

Gen Z and the Future of Business: A Generation Focused on Values and the Environment

Gen Z, or Generation 2, are those born from the late 1990s to the early 2010s. These guys grew up with gadgets in their hands, with endless access to information and social networks. The Internet for them is not a «novelty», but a native environment, and technology is not something surprising, but an inevitable part of life. They do not know what life is like without Wi-Fi or without…

..mobile applications for everything from ordering food to signing up for yoga. This is a generation that is not afraid of change and, most likely, does not perceive it as something frightening, but rather as an opportunity for growth and innovation.

But most importantly, zoomers are perhaps the most conscious of all generations in history. They are not just interested in how to make money, they want to earn it in a way that does not harm the environment and society. Consumer culture for them is not just about shopping for the sake of shopping. They choose brands that support environmental initiatives, fight for social justice and have a clear understanding of what problems they are solving in the world.

Features of Strategic Development in Zoomers

The strategic thinking of zoomers, unlike their predecessors, is focused not only on financial profit, but also on the long-term consequences for the planet and society. Their strategies cannot be successful without taking into account social responsibility and sustainable development. In this context, business is not just a source of income, but an instrument for changing the world. Many zoomers are focused on creating and developing «startups that solve problems, such as environmental pollution, inequality and the use of non-recyclable resources.

Strategy for them is not only economic success, but also a contribution to…

..the common good. This approach directly affects how they build their businesses: conscious consumption, waste minimization, social initiatives and the moral side of business — these are all important aspects of their strategic vision.

If boomers used technology to improve processes and standardize them, and millennials created digital ecosystems for scaling business, zoomers go further: they start building "-businesses» that not only use technology, but also actively think about their impact on society and nature. This generation does not perceive the choice between profit and sustainability as a dilemma — for them they go hand in hand.

One of the brightest representatives of Generation Z is Boyan Slat, the founder of the startup The Ocean Cleanup, which develops technologies to clean the oceans of plastic waste. Unlike many other companies whose environmental responsibility is limited to superficial initiatives, Boyan Slat focuses on solving the global problem of ocean pollution with innovative technologies. His startup actively supports the ideas of sustainable development, attracting the attention of both investors and governments. This example demonstrates how Generation Z uses…

business and technological innovation to address global environmental challenges.

In CIS countries, entrepreneurs are also emerging who are focused on values and sustainable development. For example, Alibek Yermekov, the founder of a Kazakh startup in the field of eco-friendly packaging, actively advocates the use of materials that do not harm ecosystems. In his strategic vision of business, not only quality and demand are important, but also the impact on the environment, which made his company one of the fastest growing in its niche.

A lot can be expected from Generation Z. First of all, they will continue to destroy old business models focused solely on profit. This generation will move towards even greater integration of technology and socially responsible business. The future of business, likely, will be associated with the concepts of social responsibility and sustainable development, which will be important not only for customers, but for all market participants. Zoomers will also continue to innovate, both in processes and in products. They will continue to blur the boundaries between the physical and virtual world, and integrate into their strategies such things as artificial intelligence, blockchain, augmented reality, and even…

..biotechnology, to not just compete, but redefine the rules of the game.

Expect from them a more humane, ecological and socially-oriented approach to doing business. This generation will not just follow trends — they will create them, referring to the values and the future of the planet. Ultimately, they are already showing that profit can be organically linked to sustainable development, and innovation — to improving the quality of life.

The evolution of business strategies is a complex and multifaceted process, which is constantly adapting in response to changes in the external environment, technological breakthroughs and transformations in public consciousness. Responding to the challenges of the times, companies are forced to reconsider their strategic approaches, including in them innovation, sustainability and social responsibility. Let’s deepen our understanding of the evolution of strategy from a theoretical point of view.

Steps of Strategy Evolution

Classical Strategy: stability and economies of scale

In the early stages of business development, the main attention was paid to the so-called classical strategy (or forecasting-based planning), which focused on stability and growth. The theory of economies of scale, developed in the 20th century, explains how increasing production volume can reduce the cost of production and increase competitiveness. In this context, the strategic goal of business was reduced to expanding production and entering new markets. Theorists Miles and Snow, in their model of strategic choice, emphasized that companies should choose one of four strategies: defense, exploration, development or optimization, depending on market conditions and available resources.

The Strategy of Flexibility and Adaptability

In the 1980s, in the context of globalization and technological change, the need for adaptability and flexibility became one of the foundations of strategic development. The model of dynamic capabilities, proposed by Teece, Pisano and Shuen (often referenced as Teece & Pisano, or Teece, Pisano, and Shuen for example), focused attention on the importance of the company’s rapid response to changes in the external environment. This model suggests that companies should not only develop current capabilities, but also constantly renew their resources and competencies to maintain competitiveness. During this period, strategies began to focus on the ability to quickly adapt to changing conditions.

Competitive Advantages Through Innovation

Since the end of the 20th century, innovation and technology have played a crucial role in business strategy. One of the most influential theorists in this field was Michael Porter, whose theory of competitive advantage argued that companies must create a unique value proposition that will allow them to occupy a dominant position in the market. Porter divided strategies into two types: cost leadership strategy and differentiation strategy. He argued that successful companies must either reduce the cost of production or offer a unique product that will differ from competitors’ offerings.

Sustainable Development Strategies

Starting in the 2000s, with the growth of social and environmental responsibility, companies began to develop strategies focused on sustainable development and corporate social responsibility (CSR). According to the Theory of Corporate Social Responsibility of Harvard Business School, CSR affects not only the company’s image, but also its financial results, providing long-term profits through the loyalty of consumers and investors. It is important to note that sustainable business models have become not just a trend, but a necessity, because companies that ignore environmental problems lose the trust of society and investors.

Chapter 2: Basic Principles of Business Strategy

Main types of strategies: differentiation, cost, focus

So, we are beginning to study the most important chapter of the book — how to write your own strategy step by step. The first thing to do is to choose the type of your development. In the theory of strategic management, the three main approaches — differentiation, cost and focus — are fundamental to developing a successful strategy in a competitive environment. These strategies, proposed by Michael Porter, form the so-called «generic set of strategies», which can be used to achieve competitive advantages in the market.

For clarity, let’s look at each approach using a table that highlights the key features of each of the strategies:

1. Differentiation Strategy

The main emphasis in the differentiation strategy is on creating unique value for consumers. Companies that use this strategy strive to offer not just a product, but a unique experience that will be in demand among target consumers. An important element is the creation of such value, which will be perceived as something incomparably better than that of competitors.

An example of such a strategy is Dyson, which produces innovative vacuum cleaners, hair dryers and other devices. The company has created unique products with highly efficient technologies and design, which allows it to set higher prices, despite the presence of competitors in the consumer electronics market.

Another example is Patagonia, a company that not only sells high-quality clothing, but also actively uses environmental initiatives and principles of sustainable production, which also sets it apart from competitors in the outdoor products market.

Key success factors for a differentiation strategy are:

— Innovation

— High Quality

— Unique Design

— Branding

I want to note that successful differentiation requires significant investment in research and development, as well as active attention to changes in the market and consumer preferences.

2. Cost Strategy

The main goal of the cost strategy is to offer a product or service at the most competitive price. To do this, companies must effectively manage their

An example of a successful implementation of a cost strategy is Walmart, which was able to set low prices thanks to an efficient supply system and huge sales volumes. The same can be said about low-cost airlines like Ryanair, which offer affordable air tickets by minimizing all costs, including restrictions on services on board.

Key features of a cost strategy:

You’ve provided some text in Russian. Here’s the English translation:

— Mass production

— Effective cost management

— Low prices

— Attracting a broad segment of consumers

However, for the successful application of this strategy, the company must be able to scale, optimize its processes, and take advantage of economies of scale.

3. Focus Strategy

A focus strategy is when a company chooses a narrow market segment and focuses on meeting the specific needs of that group. The company can choose either a cost focus strategy (low prices for a narrow audience) or a differentiation focus strategy (specialization on a unique offer for the target segment).

An example of a focus strategy is Rolex, which targets a narrow segment of consumers who want to buy exclusive, high-quality watches. This strategy allows the company to maintain high prices and exclusivity.

For the successful application of a focus strategy, the following are important:

— Deep knowledge of your audience

— Specialization in a specific niche

— Individual needs of the target audience

Companies using a focus strategy often become leaders in their niche, gaining a high degree of loyalty and trust from consumers.

Each of these strategies — differentiation, cost, and focus — has its own advantages and disadvantages, and the most important task for the company’s management is to choose the right strategy that will correspond to its goals, capabilities, and market needs. It is important to understand that the choice of strategy should be made taking into account not only the current market situation, but also the long-term goals of the company, its resources and the specifics of business operations.

When we talk about strategies, the question often arises: is it possible to combine different approaches, such as differentiation, cost, and focus? Answer: yes, and in practice many successful companies do just that. This is not only possible, but sometimes necessary in order to remain competitive in today’s economy.

Samsung is a prime example of how you can combine a differentiation strategy with elements of a cost strategy. The company has long been not only a leader in innovation in smartphones and technology, but also does it with relatively affordable prices, offering technologies that compete with Apple, but do not always require such large investments. This is not just a long-term strategy, but also a clear understanding of market needs and the desires of the target audience.

Then there is Tesla, which at the very beginning chose a focus strategy, creating environmentally friendly and high-tech cars for a specific audience. At first it was an elite segment, where price did not play such a decisive role, but today Tesla continues to adhere to the focus on high-quality and environmentally friendly cars, and at the same time expands the range for a wider range of buyers.

Magnit and Pyaterochka in Russia are examples of companies that used a cost strategy with a focus on the mass consumer. They have focused on affordability and everyday goods. Here, every ruble is important, because the buyer is interested in a low price and a large assortment for everyday needs. These companies work very efficiently with logistics, minimizing costs and providing goods at a low margin. And yes, in such cases it is important to always be prepared to respond quickly to changes in the market situation.

One should not forget about Nike — it is, perhaps, an ideal example of a hybrid strategy. On the one hand, it uses differentiation, offering unique and innovative sports goods, on the other hand, it works to offer more affordable options for the mass consumer. Moreover, Nike actively uses focus on specific segments, for example, on football players or runners, developing specialized products for them that cannot be found in regular stores. It is this combination of different strategies that has made Nike a global brand that occupies a leading position in the market.

So, it is important to understand that combining strategies is not just a possibility, but often a necessity. With a competent approach, you can use the strengths of each type of strategy to optimize business processes, improve the offer for clients and create competitive advantages. All this requires clear planning and constant analysis of how exactly all these elements will work together, and what result they will bring at different stages of the company’s development.

And, of course, do not forget: combining strategies is always a balance. Exceeding the emphasis on one direction can lead to a loss of competitiveness in another. Everything must be competently balanced to give you the opportunity not only to survive, but also to thrive in a changing market.

I hope at this stage you will be able to accurately determine the direction of your strategy.

Benchmarking: The search for an ideal for growth

Benchmarking is the process of systematically comparing business processes, products, services or practices with the best examples in the industry, in order to identify best practices and apply them in your company to improve efficiency and competitiveness. This term, in particular, came into widespread use in the 1980s in Japan, when Toyota began to actively use comparison methods to improve its production processes. The term «benchmarking» comes from the English word «benchmark», which translates as «standard», «reference point» or «measure». Initially, this term was used in geodesy, when reference points were created to measure heights on the ground. However, in the context of business, it has come to mean the process of finding and applying best practices to improve the efficiency of a company.

In the 1980s, Japanese companies, in particular Toyota, began to use this approach to improve their production processes, based on comparisons with Western companies such as General Motors. After a few years, benchmarking became a popular tool in various industries, including manufacturing, marketing, finance and human resources management.

Benchmarking is a systematic evaluation of your company’s practices, processes, or products in comparison with the best global counterparts. Its goal is to identify which processes or practices can be improved, and then implement the best solutions to increase the competitiveness of the business.

The main objective of benchmarking is to improve results through the use of best practices of industry leaders and a constant drive to improve the level of service, productivity or innovation. It is a process that involves not only identifying best practices, but also analyzing how these practices can be adapted for your business.

Types of Benchmarking

— Internal Benchmarking — comparison of processes within the organization itself. This allows you to identify best practices in different departments and improve the overall efficiency of the company.

— Competitive Benchmarking — the process of comparing your company with direct competitors. This type of benchmarking allows you to identify the strengths andweaknesses of your business within the competitive environment.

— {} Functional Benchmarking — analysis of processes with companies operating in a similar industry, but not competitors. This makes it possible to identify effective practices that can be implemented in your company.

— {} Global Benchmarking — the process of comparing with world leaders, regardless of industry affiliation. This approach opens up horizons for the use of the most advanced technologies and solutions used in other areas.

Benchmarking Tools

In the benchmarking process, various tools are used that help to effectively collect and analyze data:

— SWOT analysis — used to assess the strengths and weaknesses of your company, as well as opportunities and threats in the external environment.

— Analysis of key performance indicators (KPIs) — allows you to track the most important indicators of the company and compare them with the results of competitors.

— Process analysis — helps to identify shortcomings in the processes within the company and evaluate their effectiveness in comparison with best practices.

— Competitive analysis — includes assessing competitiveness based on market research and analysis of market positions.

— Benchmarking Process: Key Stages

Here’s a table illustrating the benchmarking process: