The term strategy is derived from the Greek word “strategos”, an elected military general in ancient Athens. Sun Tzu’s perspective of strategy in his book the “Art of War” in non-war terms can be likened to significant efforts of a company or organization to survive, expand and defeat competitors.

The term has been defined in so many ways by so many people as early as the 18th century in a way that it would be impossible to attempt a compilation of all all relevant definitions😅 However, there’s no need to worry, we wouldn't take you through any of that trouble either. For the purpose of this writeup, we opted for a simple yet very relevant definition of the term which is a plan of action made to achieve long term goals Strategy can also be defined as a means of determining long term goals of an enterprise, actions to be adopted and resources necessary for the achievement of the goals. The above definition by (Chandler,1962) brings the term home to a business enterprise.

Business strategy is a plan of action or a set of decisions which assist entrepreneurs in achieving long term goals and objectives. It is a grand plan implemented by a company's management to secure a competitive position in the market, execute its operations, satisfy customers, and achieve the goals of the business.

Also notable, every business strategy contains some key components or features which highlight the uniqueness in each business. These include the vision and mission, core values, competitive advantage, goals and key performance indicators. These components should be clearly spelt out to position the company on the right track. Most businesses strategize in different ways. While a company may seek ways to reduce the cost of raw-materials or production and sell at a higher profit, another company may aim to increase sales through different promotional means. Hence, different business strategies may exist for different companies depending on the nature of the firm and what they want to achieve.

1. Corporate strategy
Corporate strategy is the highest level of strategy and is concerned with the overall scope and direction of the company. It involves decisions about which markets or industries to compete in, whether to diversify and how to manage the various business units within the company. Types of corporate strategy include; the growth strategy, stability strategy and retrenchment strategy.
The growth strategy focuses on expanding the company’s business through new markets, products, or services. These can be done through methods like mergers and acquisitions, joint ventures, and strategic alliances; the stability strategy is aimed at maintaining the current market position and performance. This strategy is often adopted in mature or declining industries. Then, the retrenchment strategy which is aimed at reducing the scale or scope of the business to improve financial stability. This could mean selling off unprofitable divisions or downsizing operations.

2. Business unit strategy
Business unit strategy focuses on how to compete successfully in particular markets. It involves decisions about product offerings, market segments, and competitive positioning. This equally consists of 3 key types namely; the cost leadership strategy which aims at becoming the lowest-cost producer in the industry. This strategy typically involves economies of scale, cost reduction, and efficient production processes; differentiation strategy offers unique products or services valued by customers. This strategy can be achieved through innovation, quality improvement, or superior customer service; focus strategy targets a specific niche market with tailored products or services. The focus strategy can be further divided into cost focus and differentiation focus.

3. Functional strategy
Functional strategies are more specific and pertain to the key functions within a company, such as marketing, finance, human resources, and operations. These strategies support the overall business strategy and ensure that each department’s activities align with the company’s goals. It is further divided into marketing strategy which involves decisions about product development, pricing, promotion, and distribution. The goal of the market strategy is to effectively reach and engage target customers. Financial strategy which focuses on managing the company’s finances to ensure long-term sustainability. It also includes investment decisions, capital structure, and managing financial risks. Human resources strategy deals with recruitment, training, development, and retention of employees. The aim is to build a skilled and motivated workforce. Operational strategy which is concerned with the efficiency of production and delivery processes. This includes supply chain management, quality control, and process optimization.

4. Competitive strategy
Competitive strategy is about positioning the company in the market relative to competitors. It involves analyzing competitors’ strengths and weaknesses and identifying opportunities to gain a competitive edge. It is further divided into cost leadership, differentiation and focus. Cost leadership is aimed at becoming the lowest-cost producer to offer competitive pricing while differentiation involves the creation of unique products or services that offer superior value, and focus on the other hand, involves concentrating on a specific market segment or niche.

5. Innovation strategy
Innovation strategy focuses on developing new products, services, or processes that can create significant competitive advantages. This can involve investing in research and development, fostering a culture of creativity, and collaborating with external partners. It consists of product innovation which is all about developing new or improved products to meet customer needs; process innovation which is implementing new or improved production or delivery methods to increase efficiency and reduce costs and business model innovation which involves creating new ways of doing business, such as new revenue models or customer engagement strategies.

6. Global strategy
Global strategy involves expanding a company’s operations and presence in international markets. This strategy requires adapting products and marketing approaches to different cultural and regulatory environments. Some types of global strategy include multi domestic strategy which is customizing products and marketing strategies to fit local markets; global strategy aimed at standardizing products and marketing strategies across all markets to achieve economies of scale; transnational strategy which combines global efficiency with local responsiveness by leveraging both global and local advantages.

7. Digital strategy
Digital strategy focuses on leveraging digital technologies to enhance business performance. This includes adopting new technologies, optimizing digital marketing, and improving customer experience through digital channels. Main types of digital strategy include; e-commerce strategy focused on expanding sales through online channels; digital marketing strategy aimed at using digital tools and platforms to reach and engage customers; and data analytics strategy which utilizes big data and analytics to inform business decisions and strategies.

For a business strategy to be effective, it requires continuous analysis, adaptation, and improvement in order for it to stay abreast with the changing market conditions and business goals. Incorporating data analytics in the business strategy has become increasingly relevant to companies in the 21st century - Mckinsey Global Institute report 2016. Companies like Netflix, Google/Alphabet, Amazon and Meta have used the power of data to tremendously engineer growth in their companies.

Data analytics refers to the process of examining raw data to draw meaningful insights and conclusions. This process involves various techniques and tools to analyze, visualize, and interpret data, ultimately helping businesses make data-driven decisions. Isn’t that great?😊. Now let’s look at the place of data analytics in the business strategy of a company.

Data analytics plays a huge role in market analysis and consumer knowledge. It helps the businesses understand market trends, customer behavior, preferences, enabling them to tailor their products and services accordingly. Analyzing customer data allows businesses to segment their market and target specific groups with customized marketing strategies. It also allows the collection of customer feedback data essential for improving products, services, and customer satisfaction.

Businesses can use data to benchmark their performance against competitors. Data on competitor’s strategies, strengths, and weaknesses can inform a company’s strategic planning. In war, you cannot win against your enemy if you don’t know them well, it is the same in business. You stand a higher chance of dominating the market if you know what you are up against.

Data analytics can identify inefficiencies in business processes and suggest areas of improvements, adjustments or restructuring. This leads to optimization of operations and processes. The identification of areas of strength as well as inefficiencies help to improve efficiency. Also, by analyzing expenditure data, companies can find ways to reduce costs and increase profitability.

Data analytics helps to predict future risks and trends. This helps in proactive risk management. The use of past and present data to forecast market conditions is one key essence of data analytics and can give businesses who use it an edge over others. Data analytics can also detect patterns indicative of fraudulent activities enabling timely intervention.

Data from research and development activities can guide and improve the innovation process. This can facilitate better product development. Additionally, a proper understanding of customer data, customer preferences helps businesses develop products that meet market needs.

Data analytics is a great asset to strategic planning because it produces information for more accurate and informed decision-making. Also, businesses can use data to simulate different scenarios and outcomes for a more effective strategic planning. Finally, key performance indicators (KPIs) derived from data help in monitoring progress towards strategic goals.

1. Data collection and management - implement robust systems for collecting, storing, and managing data from various sources.
2. Data analysis and interpretation-use advanced analytics tools and techniques to interpret data and derive actionable insights or hire us to handle it for you.🙂
3. Data-driven culture- foster a culture where data-driven decision-making is encouraged and supported at all levels of the organization.
4. Technology and tools-invest in technologies such as big data analytics, artificial intelligence, and machine learning to enhance data capabilities.
5. Skills and expertise-ensure that the organization has the necessary skills and expertise to analyze and use data effectively or you can outsource to us.