Company can choose any strategy it likes in order to provide constant financial state and competitive ability for along time. Even the choice of similar strategies never occurs in the similar conditions. There are a great amount of different factors that influence on this choice.
That is to say as much different situations in the market can be so much strategies can exist. Formally it can be distinguished several typical strategies which are often used by different companies.
Types of strategic plans differ on the basic features according to which we can classified them.
- According to the level of management. Here strategy of the company can be: corporative strategy, business strategy, functional and operational strategy.
- According to the direction of development the strategy of the company can be technological and production. Technological strategy includes analysis and estimation of the current technological level of the company and forming of the mechanism of transformation of strategic decisions concerning technology into concrete list of actions.
Production strategy concerns the development of new product. It includes the studying of the nature of new product, reveal of market’s types and composition of consumers, working out the technology of its production, the estimation of affectivity of the program of mastering of new product.
- According to the age of market and goods: strategy of deep penetration, strategy of market’s enlargement, strategy of the product’s development, strategy of diversification.
- According to the type of influence: attack strategy, defense strategy, retreat strategy.
- According to the type of development: strategy of the limited growth, strategy of the growth, strategy of decrease, and strategy which combines the previous three types.
- According to the direction of activity: strategy of differentiation, strategy of the cost leading, strategy of concentration.
- Typical international strategies includes the following actions: sale of licenses on the use of technologies or sale of company’s production to the foreign firms; creation of the production base on the national level in one country and export of goods to the foreign markets; use the competitive strategy in the internal markets of many countries and so on.
- According to marketing plan (which is a part of every business plan).
- According to the level of competition.
- According to the sphere of activity of the company.
- According to the environment and to the internal abilities.
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So a great amount of different strategies are exist and are used by companies in financial planning’s. Often the choosing of the strategy is based on financial projections and such manipulation as due diligence shows if this choice was correct.
Illustrative business plan samples
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