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  • Writer's pictureMoetaz Soubjaki

Four Strategies That Move Profit Organizations

Organizations always strive to develop their strategies in order to achieve the vision that they’ve set for themselves. Therefore, it is necessary for the organization to know the type of strategy that it should adopt, without random selection, and in a manner that serves its interests, mission, and directions. Accordingly, this blog will indicate several strategies that organizations can adopt based on their strategic analysis.

Growth Strategy: Maxi-Maxi Growth Strategy

The Growth Strategy or as some call it the Hostile Strategy (the Red Ocean Strategy) is one of the strategies that every organization aspires to adopt, as it indicates the existence of major and fundamental strengths in the organization with potential external opportunities that can be obtained by exploiting these strengths. Thus, the organization becomes in a position of strength and can start expanding in markets and products, as well as begin to acquire vertically and horizontally, and focus available resources towards the most demanded and profitable products and services, to fully control the details of the sector in which it operates.

Conservative Strategy: Maxi-Mini Conservative Strategy

The Conservative Strategy pushes organizations to maximize the use and utilization of their own assets and minimize external threats. The success of the organization lies in its strengths, capabilities, and internal abilities. However, according to the strategic analysis, this organization has external threats that must be avoided or defeated and reduce their impact, therefore this strategy is called conservative because it is associated with the lowest risks. This organization can adopt the Conservative Strategy by exploiting its strengths to overcome competitors, reduce costs, develop internal products and services, and target new markets (Blue Ocean Strategy) that no one has reached.

Competitive Strategy: Mini-Maxi Competitive Strategy

Organizations adopt a Competitive Strategy when they have more weaknesses than strengths, in return, there are real opportunities for them in the available markets. These opportunities must be worked for the organization, especially when there is competition between them and the current competitors. The fact that its strengths are large, it must be overcome by following several tactics such as strategic partnerships, innovation in current products and services, optimal use of internal resources, increased productivity, efficiency, effectiveness, and search for competitors' weaknesses and exploit them to obtain a higher market share.

Defense Strategy: Mini-Mini Defensive Strategy

Organizations adopt a Defensive Strategy when they are at their weakest organizational state, where they have both significant weaknesses and significant external threats. In this strategy, the organization seeks to try to survive by reducing weaknesses, avoiding threats, and working with extreme caution, as it is the weakest within the corporate food chain, and to survive it can adopt tactics associated with tactical withdrawal in stages or join under the umbrella of another company, even if it is a competitor. Or even becoming an authorized distributor for another company, as well as interest in reducing internal costs and enhancing efficiency, and they can continue to invest in the company if there is a potential return.

These four basic strategies drive the work of profitable companies. Usually, the correct strategy is chosen based on a strategic analysis by adopting several analytical tools such as (SWOT), (TOWS) and others.

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