…what’s your business strategy ?

the business strategy

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We’re in the busiest and most profitable season of the year for businesses.
Profitability is not by magic, it’s the outcome of deliberate business strategy.

By strategy, we mean an integrated set of plans and actions designed to enable a business gain advantage over its competitors, thereby maximizing profits. You should have one this season.

The market is open for you to play in, but you have to adopt one of the basic two business strategies.

👉🏾Low Cost Strategy or
👉🏾Differentiation Strategy.

To explain the two, we will use a clothing business (boutiques).

Mr. Appiah decides that he wants to sell more than his competitors with similar brands and quality this season. He plans that if others are selling a Shirt for Ghs400, he will sell for Ghs350 or Ghs300. The same quality, the same product.

With that, what he has adopted is a “low cost strategy”. Which tends to draw a certain class of customers to him. His objective is to make more sales by lowering price thereby make profit by volume.

Most successful businesses use the strategy like Wal-Mart. But it has limitations too.

But Madam Zamel comes up with a different plan. She understands that her customers is the increasing Middle class of young men who constantly design to look rich. Value for them is based on the amount they pay. She wants to meet their taste of value and maximize profit.

Instead of selling just Shirt for Ghs400 to them, she adds a Turkey tie, cliff link and pocket square; which cost Ghs700 in all.

She then package it together as a single product and call it: “That Look or Pressure Boy’s Looks😎” priced at Ghs1,000 but discounted price of Ghs 900.

It’s put out on social media and other platforms, and it becomes a hit.

By just bringing independent products together and branding them, she has not only created a market for herself but she has made it inaccessible for competition.

Mr. Appiah will start asking his suppliers about “Pressure Boys Looks Collection “, without knowing it was created by Madam Zamel

For differentiation to be successful, the product must be truly unique or perceived to be unique in quality, image, design, etc.

There is also a hybrid that combines low cost and differentiation to produce a business strategy. It’s just like Africa’s mixed economy that adopts socialism and capitalism.

What strategy will you adopt this season🤔?

Signed
Nana Kwame Boadu
(Millionaires Consultant)

Be your Own Boss, Let me be your Consultant

MD of SamBoad

VIAMillionaires Consultant
SOURCEMillionaires Consultant
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Nana Kwame Boadu (AMABE) - (b1989) A professional Human Resources Personnel by training and consultant by passion,Nana Kwame Boadu prefers to be referred to as "Millionaires Consultant" to entrepreneurs and Start Ups. Nana Kwame Boadu founded SamBoad Ventures in 2014 and later founded SamBoad Micro-Credit Services in 2018. SamBoad is a financial aid and business agency services provider with subsidiaries providing Loans, Dhl(Courier Services), Mobile Money Services, Consultation & Investment management and advisory services. Beyond the provision of basic financial aid and business agency intermediation services SamBoad has partnerships with banks, real estate firms, travel consultation firms and agents that actively invests in and promotes the development of small and medium size entreprises of African origin including start-ups. SamBoad Ventures - a flagship subsidiary of SamBoad, has been the leading provider of retail agency services to the informal sector of Ghana since 2014. SamBoad Micro-Credit Services is also another initiative of Nana Kwame Boadu. Established on the principles of helping start ups ,unbanked and upcoming entrepreneurs to provide financial aid to them, eradicating poverty and help promote and provide employment. As Lead marketer at Freights Masters shipping agency, he worked there for a year bringing in businesses for exports and clearing of goods.He then went ahead to serve the Nation for a year at Drivers and Vehicle Licensing Authority(DVLA) at koforidua.After he had an opportunity to work with BEIGE as a relationship officer – a Ghanaian based Financial Institution; he had responsibility for providing investment advisory, deposit mobilization, Loan advisory ,capacity building and Customer Service for One and a half years.He then moved to Dalex Finance as a loan officer and Sales and Marketing Representative,still building his Company SAMBOAD. An award winning Blogger/Consultant and Motivational Speaker highly regarded as one of Ghana’s emerging Start Up business leaders, Digital Marketer,Prolific Speakers and Entrepreneur and New Business Developer, Nana Kwame Boadu has demonstrated throughout his career, profound intellectual capacity in matters relating to entrepreneurship, start up and New Business Development as well as continuous leadership in business excellence.In 2015 he was recognized twice as a top distributor(Ghana) of Alliance in Motion Global(Alpha Alliance) and 2016 and 2017 he was recognized at his Branch as agorohene at the Adenta Branch of BEIGE. Nana Kwame Boadu was recognized by president of Full Gospel BusinessMen Fellowship International as promising youth personality for Entrepreneurship and Motivational Speaking. In 2017 he was again recognized as Promising Blogger in an Indian Daily Mill Magazine the 6th most influential Digital Marketer person in Indian(Facebook & Instagram). Nana Kwame Boadu’s ambition is to continue pursuing entrepreneurial aspirations as a means of influencing and inspiring a new breed of leaders from Africa and help build start ups to create employment through micro-loans, Summit ,Consulting and Digital Marketing. He is a Member of ABE, UK

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