Question

Discuss the requirements for directional, adaptive, market entry and competitive strategies?

Answer 1

Directional Strategy:

A directional strategy is often created with an eye toward one or more of three elements: stability, growth and retrenchment. As a small-business owner, before creating your directional strategy, you must define what your goal is, whether it's to stabilize your company's earnings, grow profits, or cut back on staff or spending to move forward. Once you assess your business needs, you can better choose the type of directional strategy that suits your company. For example, if your small business is hemorrhaging money, a retrenchment strategy may work best for you. During retrenchment, you may conduct layoffs, eliminate specific products from your line, or file for bankruptcy or liquidation.

Adaptive Strategy:

Strategizing in the adaptive context requires a process of watching and responding to changes in the environment by capturing change signals and managing a portfolio of experiments. Adaptive firms continuously vary the way they do business by trying many novel approaches and then scaling up and exploiting the most promising before repeating the cycle. Successful adaptive firms outperform rivals by iterating more rapidly and effectively than their competitors.

Market Entry strategy:

It requires details of isolation of a target market segment, a set of clear-cut goals, a fair amount of consumer research, and the implementation of initiatives aimed at getting the word out.

Competitive Strategy:

ery few businesses have the same competitive strategy year after year. Your business and the market are constantly evolving, with new companies and products entering the arena all the time. Your strategy for staying ahead of your competition has to change to meet your new goals. It doesn't mean your previous strategy was wrong; it just means you have different problems to compete with now and must be able to adapt to your new situation quickly.

It requires details about changing customer needs, new suppliers, more advanced products, competitive advantages.