business strategy and research and development

More From Forbes

Three steps to implementing a successful r&d strategy in your business.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

What’s the first thing that comes to mind when you think about research and development (R&D) in your business?

Most of the time, you’ll immediately go to product-based research, but R&D can (and should) be so much more than that. There are myriad aspects of your business where innovation will make a huge difference, not only with your products and services, but also in more broad terms, such as the efficacy of your customer flow and systems that can help your business run more smoothly.

At the end of the day, R&D is about taking what you have and doing the necessary research to enhance capabilities and be more efficient, and that is important to all business owners, regardless of company size or industry. In my experience, there are three important steps (and time-savers) to implement a successful and effective R&D strategy for your business:

1. Build a clear strategic framework.

As I’m sure many entrepreneurs can attest, there’s usually no shortage of good ideas being thrown around about how to improve your business.

So, the first step toward building your strategic framework is to resist the urge to "boil the ocean," and understand which aspects of your business you need to focus R&D around. Ask yourself what the current business demands are in order for you to reach your goal, then identify the limitations you’re facing and what you need to change or improve upon in order to achieve the desired result. Once you know where you are and where you want to go and have clarity on your goals and objectives, you can start drilling down on your approach, determinants of success, measurements and reporting.

I believe that strategy is all about allocation of scarce resources, so you want to be selective, test appropriately, analyze the metrics and, if something isn’t working, be able to identify where you need to pivot and make sure you have the resources available to do so.

2. Assign a dedicated R&D team to manage the strategy.

Having a dedicated team to manage R&D with carefully assigned roles and responsibilities will help determine whether or not your R&D program is implemented effectively. Everyone on the team needs to know the structure of the group and who is responsible for researching, designing, and implementing the new product, process or service; and, perhaps most importantly, they need to know how it’s being tested. You’ll also want to define who is accountable for making the "go" or "no go" decisions and ensure everyone understands those firm decision-making points. That way, you can measure when something is working or when it needs to be changed.

Now, this doesn’t mean you need 100%-dedicated roles­. If you’re a small business that isn’t big enough for a dedicated team, the important piece here is having some measure of accountability. You need to have a clear idea of who is responsible for driving the program forward and clear milestones to measure your progress against so it doesn’t become an afterthought when other aspects of the business start calling for attention.

3. Have a proper test environment.

The final step in determining the effectiveness of your R&D program is making sure you have the right test environment.

For example, if you have a restaurant and add a new menu item but people don’t buy it, that isn’t a thorough test of whether or not it was a good product. It should be about more than, "yes, we changed this service" or "yes, we tried that product." It should be about the whole package. The product could be perfectly good, but did you market it? Did you talk about it? Was the staff trained on how to promote it? A good test environment will clearly indicate where you need to make adjustments by taking all of these factors into account. Otherwise, you could end up killing off a perfectly good program simply because it needed a few tweaks.

Some business owners are hesitant about R&D because of the expense and uncertainty, but it’s also important to think about the risk of staying stagnant. Will your competitors surpass you? Will you go from a market leader to a follower? Will your customers opt for something better or more efficient?

Let me share a recent R&D program success story from one of my company's brands. Earlier this year, we followed these three steps to improve membership-program conversion. We started with a clear framework, which included a long-term approach to sales and conversion training (online and in person), simplifying the membership marketing materials and building a new online dashboard to measure our success. The results have been phenomenal: From January through July, the average membership conversion for one of our franchise brands was 16.4%. In October, the brand’s efforts yielded a 5% average-conversion-rate increase.

I've found that the risk of stagnation is always greater than the risk of innovation, especially if you implement R&D programs with a well thought out strategy, a dedicated R&D team and a proper testing environment. Innovation is the most critical component of a successful company, no matter the size or structure. Businesses with the innovative advantage are businesses that are able to scale, stand out, attract the best talent and stay top of mind in an increasingly crowded marketplace.

Bottom line: Status quo only works for so long, and if your doors open, you should keep innovating.

• Editorial Standards
• Reprints & Permissions

• Digital Transformation
• How to Build R&D Strategy

R&D in Business: Building an Efficient R&D Strategy and PixelPlex Pro Tips for Industry Challenges

Published: 27 September, 2023

Innovation drives a company’s competitive edge. However, the advantage isn't derived solely from access to technology but from aligning that technology with market needs. This is where an R&D strategy comes into play.

Research and development (R&D) entails testing, experimentation, and the acquisition of new knowledge driven by the goals to develop new products and services or enhance the ones that already exist.

R&D strategy is essential for business leaders looking to assess the feasibility of their project idea and determine practical steps to achieve their objectives. It’s a key tool for launching successful projects that align with market demands.

In this article, we’ll outline a step-by-step process for crafting an R&D strategy, share best practices for its implementation, highlight top R&D priorities for businesses, and offer tips to address industry challenges through research and development.

What is R&D in business?

In a business context, research and development is a set of activities businesses undertake to achieve new knowledge and find practical application of a new solution or technology.

Research and development is one of the earliest steps when developing a new product or tool. It typically consists of two main phases. The first phase involves thorough market research to determine innovative tools and technologies, while the second one focuses on implementing the ideas and technologies that drive innovation.

What are the benefits of investing in R&D?

R&D allows businesses to benefit from gaining a competitive advantage, reducing costs, and improving performance. Let’s talk about each benefit in greater detail.

Gaining a competitive advantage

By consistently creating products and services that cater to changing customer preferences and setting new industry benchmarks, you can solidify your business’s leadership position and ensure long-term sustainability. With an efficient research and development strategy, you can catch up with digital transformation trends and strengthen your brand reputation.

Furthermore, R&D initiatives allow you to present unique offerings to your customers, which opens doors to entirely new market segments.

Cost reduction

Research and development in business provides multiple opportunities for cost reduction. One of the most tangible ways R&D achieves this is through the development of efficient production methods. For instance, in the automotive industry, continuous R&D can lead to lean manufacturing techniques that minimize waste and improve process efficiency. By refining production lines and reducing defects, companies can produce more units at a lower cost.

R&D can be also leveraged to bring in automation tools. Warehouses , for example, can introduce automated robots to streamline operations, drastically cutting labor costs and increasing efficiency.

Improved performance

Incorporating R&D in business helps improve the quality of products and services. Through R&D activities, you can develop and test new technologies, products, techniques, and designs. This will ultimately enhance product performance and increase customer satisfaction.

Furthermore, R&D offers insights into your production methods, organizational structure, and market position, allowing you to boost productivity by addressing inefficiencies and directing resources to the most valuable projects.

We’ve compiled a list of the most popular digital transformation challenges that modern enterprises encounter, along with tips for overcoming them. Check it out

How to develop an efficient R&D strategy step-by-step

The development of an R&D strategy involves four main steps: defining the research problem, creating an R&D plan, collecting and analyzing data, and establishing milestones and testing the strategy.

Let’s explore each step in detail.

1. Define the research problem

First of all, you need to determine the problem you want to address through research. Your goal here is to formulate clear objectives that specify what you want to achieve, the outcomes you need to deliver, and the methods by which you will accomplish this.

Ensure that your business objectives are specific, measurable, achievable, relevant, and time-bound (i.e., SMART).

2. Develop an R&D plan

An R&D plan should outline existing problems and challenges, corrections that need to be made, specific deadlines, and budget allocations. Some of the key elements to include in your plan are:

• Current trends and technologies relevant for your product or service
• Expected time to profit
• Potential risks and challenges
• Long-term production and support times
• Project roadmap

Once these elements are in place, prioritize tasks based on their significance to the project, starting with those that are absolutely essential for building or optimizing the product and then moving on to those that are merely optional or nice-to-have.

Additionally, as you formulate your R&D plan, delineate key roles and responsibilities within your research and development team. The typical structure of an R&D team comprises engineers, scientists, and project managers, but the final lineup will depend on your specific project and business needs.

3. Collect and analyze data

The next step in the R&D process is data collection in line with your established plan. This includes conducting surveys, interviews, and observations, or using previously collected data, such as market trends, statistics, etc.

Then, you need to organize, clean, and interpret the collected data and present your findings to project stakeholders in a clear and concise manner. Using this data, you will be able to move your R&D ideas forward and start experimenting with new products, tools and technologies.

4. Establish milestones and test your strategy

You need to test your R&D strategy to make sure it is headed in the right direction. To achieve this, establish clear technical, regulatory, or other milestones. These serve as decision points for shifting resources to or away from certain research and development initiatives or experiments.

These milestones not only measure progress but also confirm that your R&D strategy execution remains aligned with your objectives.

What are the best practices for R&D strategy implementation?

For efficient implementation of a research and development strategy, our technology consultants advise the following key steps:

• Create a dedicated R&D team . Assembling a dedicated R&D team ensures a blend of diverse skills and expertise. This also promotes cross-functional collaborations that help generate new ideas and uncover valuable insights. Depending on the scale of your project, you can create an internal team, hire external consultants, or partner with a third-party R&D team.
• Leverage technology and partnerships . Utilize cutting-edge technologies and tools, such as big data solutions , AR/VR simulations, and predictive models to streamline and facilitate your R&D initiatives. Additionally, partnerships with other organizations, research centers, etc. can offer supplementary expertise and different perspectives.
• Define metrics . Establish clear and measurable metrics. These will serve as indicators of what’s working and what’s not, allowing you to timely adjust your R&D strategy and achieve better results.
• Establish R&D policy . A well-defined R&D policy offers a structured roadmap for your research and development endeavors, ensuring alignment with organizational goals and efficient resource allocation.

Implement business intelligence solutions tailored to address your business challenges and goals

What are the research and development challenges in business?

To build a successful R&D strategy, it’s essential to understand the current challenges modern enterprises face. These include lack of connection to the customer, accelerated innovation cycles, and substantial investments.

Let’s take a closer look at each challenge.

Lack of connection to the customer

R&D units seldom have the chance to engage directly with end users. Consequently, product development leans heavily on fragmented feedback about customer preferences and needs. This negatively affects the R&D results.

To address this challenge, enterprises should prioritize creating channels for direct communication between R&D teams and customers. Regular feedback sessions, customer involvement in pilot projects, and cross-functional teams that include marketing and sales personnel can foster a clearer understanding of customer needs, thereby refining the R&D process.​​

Accelerated innovation cycles

A significant driver behind accelerated innovation cycles is the increasing reliance on software development , combined with the affordability of simulation and automation technologies.

However, established corporations aren’t the sole contributors to this fast-paced environment. Well-funded start-ups are not only introducing groundbreaking innovations but also scaling them swiftly, posing potential threats to existing business models and redirecting industry growth trajectories. This, combined with increased investor scrutiny over research expenditures, amplifies the pressure on R&D leaders to demonstrate prompt and tangible results.

To navigate this accelerated innovation landscape, companies should prioritize adaptability, promoting a culture that embraces change and continuous learning. Collaborative efforts, involving partnerships with start-ups or leveraging insights from external industries, can also help businesses stay ahead of the curve.

Substantial investments

Research and development in business demands significant investments in finances, time, and resources. Many businesses find it challenging to allocate sufficient resources to R&D, which can hinder their potential for innovation. This challenge is further compounded by the inherent uncertainty associated with R&D efforts.

The path of research can be riddled with risks, and there’s no assurance of a fruitful outcome. Moreover, the lengthy nature of R&D projects means that returns on investment might not materialize for extended periods.

To navigate these challenges, companies should consider establishing strategic partnerships and tapping into collaborative research networks. This approach can help in sharing risks and optimizing resource utilization.

Top R&D priorities for businesses

According to Gartner , in 2023, the top priorities for R&D leaders are understanding customer demands, recruiting and keeping skilled staff, and quickening the pace of their projects.

Other R&D priorities include balancing investment between short-term and long-term opportunities, optimizing R&D project resourcing, selecting technologies for investment for long-term growth, and increasing the speed to maturity for technologies within the R&D portfolio.

As for the technologies and services in which R&D leaders plan to increase their investment, the top ones include:

• Prototyping and testing
• Data analysis services
• Data collection
• Security technologies
• Power technologies

It’s also worth emphasizing that the choice of R&D priorities will largely depend on the industry your business is in and its specific challenges. Below, we added a table that includes industry-specific initiatives and how our R&D team offers to address them utilizing cutting-edge technologies and solutions.

Closing thoughts

In today’s fast-paced world, research and development plays a pivotal role in the growth and sustainability of businesses. A well-orchestrated R&D strategy allows businesses to fuel innovation and gain a competitive advantage in their business domains.

PixelPlex’s R&D team is completely equipped to partner with you in this journey. With 16 years of industry presence, our diverse expertise spans various technologies and domains. Whether it’s strategizing, creating prototypes, or testing and implementing modern solutions, we employ best practices to ensure your business remains at the forefront of innovation.

Don’t hesitate – contact us today and let’s shape the future together.

Darya Yatchenko

Lead Technical Writer

Follow us on Facebook and LinkedIn to keep abreast of our latest news and articles.

Latest posts

Viral Gaming Mechanics on Telegram Apps: A 2024 Deep Dive

How to Develop, Debug, and Launch Telegram Apps

Introducing Telegram Apps: Are They Worth the Investment?

Blockchain and KYC: Expert Interview on Navigating Security and Compliance Challenges

Get updates about blockchain, technologies and our company

Follow us on social networks and don't miss the latest tech news

• Services IT R&D RESEARCH & DEVELOPMENT In this ever-evolving tech realm, don't just follow trends — set them. Capitalize on innovation, launch ground-breaking products, and forge new business models for maximum ROI. IT Consulting CONSULTING From complex enterprise tech transformation to the innovative project launch, our team supports businesses at different stages of their projects. Come along, we’ll help you get an edge and play big on the global market. Custom Software Development CUSTOM ENGINEERING Let us have your back in a project of any scale. From user-centric mobile apps to full-blown cross-platform enterprise ecosystems — we’ll bring your concept to life, exactly as you think it should look and work. Mobile App Development MOBILE APP DEVELOPMENT Entrust us with your end-to-end mobile project — from ideation and engineering to app launch and integration. With business growth in mind, we’ll help you hit the market with a slick iOS, Android, or cross-platform app. Mobile App Development iOS App Development Android App Development Cross-Platform App Development Web Development WEB DEVELOPMENT Whether you need an app from the ground up or require a legacy system to be updated, we can jump in at any stage. From an accessibility roadmap to post-launch support, we’ll help your business stay strictly legal and competitive. Web Development Web Accessibility Audit Web Accessibility Consulting Accessible Web Development and Design DevSecOps DevSecOps Ensure your software's integrity and efficiency from conception to compliance. UI/UX Design UI/UX DESIGN Give us the pleasure of adding our secret sauce to your app. We’ll create beautiful screens at the front while breaking the limits of what’s behind them to help your app get to beyond-plausible business achievements. QA & Software Testing QA & SOFTWARE TESTING Engage us for integrated quality assurance services, and our experts will advise on QA strategy and optimize software testing costs. We’ll balance manual testing with QA automation to ensure consistent performance for all possible use cases and devices.
• Technologies Blockchain BLOCKCHAIN DEVELOPMENT Blockchain Development Blockchain Consulting NFT Development STO Development ZK Rollup Solutions Enterprise Blockchain Development Smart Contracts Development Smart Contract Audit DApp Development Cryptocurrency Exchange Development Data Science DATA SCIENCE Transforming data into growth strategies is our specialty. Leverage our expertise to unlock the potential of your big data and diverse digital assets, driving business growth. Big Data Consulting Data Analytics Business Intelligence Data Visualization Machine Learning and AI ARTIFICIAL INTELLIGENCE Machine Learning Predictive Analytics Computer Vision Custom AI Development Chatbot Development AR & VR AUGMENTED VIRTUAL REALITY Immerse your customers into a universe of unimaginable and give them truly novel experiences with AR, VR, and Mixed Reality. We'll help define a proper business concept and find a balance between legacy workflows and next-gen customer engagement solutions. Metaverse METAVERSE We create tools, assets, and ecosystems to seamlessly merge real-life and digital worlds within your Metaverse projects. It could be a multi-layer virtual space or a unique artwork item. Either way, we’ll deliver it — ready and working. Connected Devices (IoT) INTERNET-OF-THINGS Aching to handle digital and physical asset management? We build load-resistant IoT services, both enterprise and consumer. Hit us with IoT consulting, app development, back-end engineering, or existing infrastructure revamping – we’ll nail it down.
• Industries FinTech & Banking FINTECH & BANKING As traditional finance goes digital, we are committed to building efficient ecosystems and better engagement Think of customized FinTech solutions with tamper-proof transactions and storage, progress transparency and automation — and we’ll make them see the light of day. Retail & eCommerce RETAIL & ECOMMERCE Whether you market B2B or B2C, commerce tech trends are all about value-driven purposes, global sustainability, hybrid shopping journeys, and extra-resiliency. Let your clients know that there’s more to your brand than meets the eye by creating unique customer experiences in all your stores. Supply Chain & Logistics SUPPLY CHAIN & LOGISTICS To make things easier for all vendors, we deliver apps for route and cost optimization, vehicle operational support, and better dispatch time efficiency. With focus is sustainability, resilience, transparency, and immutability, let’s get your transformation going. Healthcare HEALTHCARE Custom healthcare software solutions are aimed at helping you ensure accurate diagnosis, better patient engagement, and positive healthcare outcomes. Whether you require a patient management solution, practice management software, EMR/EHR system, or ML-enabled diagnostics – we’ve got you covered. Real Estate REAL ESTATE Keep up with digital innovation trends by accelerating enterprise transformation and scaling, leveraging data and orchestrating workflows. Whether you manage and sell commercial facilities or invest third-party capital, our integrated solutions help you make the most of it. Oil & Gas OIL & GAS With mobility and digital technologies standing to change the game and define leadership, our mission is to get you digital-first. Resolve operational and conceptual issues by introducing clear tech vision, feasible architectures, and flexible software to take business extension off limits.
• Solutions Know-Your-Transaction KYT platform ensures financial integrity, compliance, and proactive risk management. Control your operations seamlessly with real-time API integration. DocFlow Secure workflows, decentralized storage, and total document control. Streamline your processes with our business document management system. Arbitrage Bot Alternate your yield channels, maximize investment efficiency, customize trading strategies, and execute profitable low-risk transactions. CryptoAPI Connect your dApps to blockchains commission-free. No need for heavy database upload, infrastructure updates, or a dedicated engineering team. OTC Hawk Redefine wealth and portfolio management at your firm, outpacing your competitors. Make crypto/fiat trading easy and profitable for your clients.
• Success stories Blockchain Government & Enterprise Energy & Utilities Financial Services Supply Chain Healthcare Retail & eCommerce See all projects
• Company About us Team News Careers Scholarship CSR Contacts

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• AI Essentials for Business
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Creating Brand Value
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading Change and Organizational Renewal
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

What Is Business Strategy & Why Is It Important?

• 20 Oct 2022

Every business leader wants their organization to succeed. Turning a profit and satisfying stakeholders are worthy objectives but aren’t feasible without an effective business strategy.

To attain success, leaders must hone their skills and set clear business goals by crafting a strategy that creates value for the firm, customers, suppliers, and employees. Here's an overview of business strategy and why it's essential to your company’s success.

Access your free e-book today.

What’s a Business Strategy?

Business strategy is the strategic initiatives a company pursues to create value for the organization and its stakeholders and gain a competitive advantage in the market. This strategy is crucial to a company's success and is needed before any goods or services are produced or delivered.

According to Harvard Business School Online's Business Strategy course, an effective strategy is built around three key questions:

• How can my business create value for customers?
• How can my business create value for employees?
• How can my business create value by collaborating with suppliers?

Many promising business initiatives don’t come to fruition because the company failed to build its strategy around value creation. Creativity is important in business , but a company won't last without prioritizing value.

The Importance of Business Strategy

A business strategy is foundational to a company's success. It helps leaders set organizational goals and gives companies a competitive edge. It determines various business factors, including:

• Price: How to price goods and services based on customer satisfaction and cost of raw materials
• Suppliers: Whether to source materials sustainably and from which suppliers
• Employee recruitment: How to attract and maintain talent
• Resource allocation: How to allocate resources effectively

Without a clear business strategy, a company can't create value and is unlikely to succeed.

Creating Value

To craft a successful business strategy, it's necessary to obtain a thorough understanding of value creation. In the online course Business Strategy , Harvard Business School Professor Felix Oberholzer-Gee explains that, at its core, value represents a difference. For example, the difference between a customer's willingness to pay for a good or service and its price represents the value the business has created for the customer. This difference can be visualized with a tool known as the value stick.

The value stick has four components, representing the value a strategy can bring different stakeholders.

• Willingness to pay (WTP) : The maximum amount a customer is willing to pay for a company's goods or services
• Price : The actual price of the goods or services
• Cost : The cost of the raw materials required to produce the goods or services
• Willingness to sell (WTS) : The lowest amount suppliers are willing to receive for raw materials, or the minimum employees are willing to earn for their work

The difference between each component represents the value created for each stakeholder. A business strategy seeks to widen these gaps, increasing the value created by the firm’s endeavors.

Increasing Customer Delight

The difference between a customer's WTP and the price is known as customer delight . An effective business strategy creates value for customers by raising their WTP or decreasing the price of the company’s goods or services. The larger the difference between the two, the more value is created for customers.

A company might focus on increasing WTP with its marketing strategy. Effective market research can help a company set its pricing strategy by determining target customers' WTP and finding ways to increase it. For example, a business might differentiate itself and increase customer loyalty by incorporating sustainability into its business strategy. By aligning its values with its target audiences', an organization can effectively raise consumers' WTP.

Increasing Firm Margin

The value created for the firm is the difference between the price of an item and its cost to produce. This difference is known as the firm’s margin and represents the strategy's financial success. One metric used to quantify this margin is return on invested capital (ROIC) . This metric compares a business's operating income with the capital necessary to generate it. The formula for ROIC is:

Return on Invested Capital = Net Operating Cost After Tax (NOCAT) / Invested Capital (IC)

ROIC tells investors how successful a company is at turning its investments into profit. By raising WTP, a company can risk increasing prices, thereby increasing firm margin. Business leaders can also increase this metric by decreasing their costs. For example, sustainability initiatives—in addition to raising WTP—can lower production costs by using fewer or more sustainable resources. By focusing on the triple bottom line , a firm can simultaneously increase customer delight and margin.

Increasing Supplier Surplus & Employee Satisfaction

By decreasing suppliers' WTS, or increasing costs, a company can create value for suppliers—or supplier surplus . Since increasing costs isn't sustainable, an effective business strategy seeks to create value for suppliers by decreasing WTS. How a company accomplishes this varies. For example, a brick-and-mortar company might partner with vendors to showcase its products in exchange for a discount. Suppliers may also be willing to offer a discount in exchange for a long-term contract.

In addition to supplier WTS, companies are also responsible for creating value for another key stakeholder: its employees. The difference between employee compensation and the minimum they're willing to receive is employee satisfaction . There are several ways companies can increase this difference, including:

• Increasing compensation: While most companies hesitate to raise salaries, some have found success in doing so. For example, Dan Price, CEO of Gravity Payments, increased his company's minimum wage to $80,000 per year and enjoyed substantial growth and publicity as a result.
• Increasing benefits: Companies can also decrease WTS by making working conditions more desirable to prospective employees. Some offer remote or hybrid working opportunities to give employees more flexibility. Several have also started offering four-day work weeks , often experiencing increased productivity as a result.

There are several ways to increase supplier surplus and employee satisfaction without hurting the company's bottom line. Unfortunately, most managers only devote seven percent of their time to developing employees and engaging stakeholders. Yet, a successful strategy creates value for every stakeholder—both internal and external.

Strategy Implementation

Crafting a business strategy is just the first step in the process. Implementation takes a strategy from formulation to execution . Successful implementation includes the following steps :

• Establish clear goals and key performance indicators (KPIs)
• Set expectations and ensure employees are aware of their roles and responsibilities
• Delegate work and allocate resources effectively
• Put the plan into action and continuously monitor its progress
• Adjust your plan as necessary
• Ensure your team has what they need to succeed and agrees on the desired outcome
• Evaluate the results of the plan

Throughout the process, it's important to remember to adjust your plan throughout its execution but to avoid second-guessing your decisions. Striking this balance is challenging, but crucial to a business strategy's success.

Learn More About Creating a Successful Business Strategy

Business strategy constantly evolves with changing consumer expectations and market conditions. For this reason, business leaders should continuously educate themselves on creating and executing an effective strategy.

One of the best ways to stay up-to-date on best practices is to take an online course, such as HBS Online's Business Strategy program. The course will provide guidance on creating a value-driven strategy for your business.

Do you want to learn how to craft an effective business strategy and create value for your company's stakeholders? Explore our online course Business Strategy , or other strategy courses , to develop your strategic planning skills. To determine which strategy course is right for you, download our free flowchart .

About the Author

• Scroll to top

•   / Sign Up
• HOW WE HELP CLIENTS
• schedule your conversation

Business Strategy Definition, Examples, Types & 10-Step Guide

Published: 13 December, 2023

Social Share:

Digital Strategy

Table of Contents

In the ever-evolving business environment shaped by digital dynamics, business strategy stands as a guiding force. Whether for start-ups or established companies, a well-defined business strategy is indispensable for ensuring long-term success. At Digital Leadership, we deeply grasp its pivotal role in laying the groundwork for effective digital transformation strategy and innovation strategy .

We foster creativity, ensuring seamless alignment of technology adoption with business goals , and driving purposeful and impactful transformations. We go beyond conventional approaches by integrating Jobs to be Done into your business strategy , focusing on customers’ fundamental needs and motivations to establish meaningful and lasting connections.

What is Business Strategy?

Business strategy refers to a comprehensive plan or a series of actions meticulously crafted to achieve specific business goals and objectives. It entails a systematic approach aimed at gaining a competitive edge, responding to market dynamics, and attaining sustainable success within a particular industry or market. This strategic framework encompasses several crucial elements, such as defining the organization’s vision, mission, and values, assessing internal strengths and weaknesses, and Identifying external opportunities and threats.

The Business Model Canvas (BMC) plays a pivotal role in business strategy, offering a visual and comprehensive framework that outlines the key components of a business model. Its importance lies in its ability to succinctly capture and communicate the fundamental aspects of how an organization creates, delivers, and captures value. The BMC consists of nine building blocks, including customer segments , value propositions , distribution channels , customer relationships , revenue streams , key resources , key activities , key partnerships , and cost structure . By utilizing the BMC, businesses gain clarity on their core operations, customer interactions, and revenue generation methods. You can download it now.

Your download is now available!

You can now access the complete Business Model Canvas Package, including a full presentation, related models and instructions for use.

The UNITE Business Model Canvas

An effective business strategy demands an in-depth understanding of the market, competition, and internal capabilities. It involves strategic decision-making regarding resource allocation, target market identification, and the development of a distinctive value proposition to differentiate the organization from its competitors. Importantly, business strategy is not a one-time endeavor but an ongoing process that adapts to changes in the business environment.

What is Strategy in Business? How Does It Differ From Tactics?

Strategy is a deliberate and well-defined plan that outlines how an organization intends to achieve its goals and objectives, considering the allocation of resources, competitive advantages, and potential challenges. It serves as a roadmap for decision-making and actions to ensure the organization’s success and effectiveness in a dynamic environment.

Strategy and tactics are distinct concepts in the realm of business and planning:

In business, a strategy is the overarching blueprint that outlines an organization’s long-term goals and the broad approaches to achieving them. It is the high-level plan conceived by top leadership to provide direction and set the trajectory for success. Strategic decisions involve critical choices about markets, products, and positioning, impacting the entire organization. A robust strategy serves as a guiding force, providing stability and a framework for decision-making, ensuring that every action aligns with the overall mission.

While strategy sets the grand vision, tactics are the nitty-gritty manoeuvres designed for the immediate implementation of the broader strategy. Tactics are the specific actions, steps, and procedures undertaken by mid-level and front-line managers to execute the strategic plan. Unlike the more enduring nature of strategy, tactics are flexible and adaptable, responding to the dynamic and ever-changing business landscape. They deal with the specifics, answering the question of “how” the strategic goals will be achieved in the short term, making them the hands-on tools for day-to-day operations.

Importance of Business Strategy

A business strategy establishes a unified vision and direction for the entire organization. Clarity in goals and alignment with the company’s mission is crucial for every individual within the company. The strategy plays a pivotal role in providing this overarching vision, ensuring that individuals stay focused and committed to their company’s objectives.

Why is Strategy Important in Business?

Strategy is essential in business for its role as a guiding roadmap. It aligns everyone with shared objectives, prevents deviations from the mission, and enhances internal performance. A well-crafted strategy is crucial for identifying market opportunities and trends, staying competitive, fostering innovation, and creating a comprehensive organizational vision. In essence, strategy is vital for ensuring alignment, efficiency, and adaptability in the dynamic business landscape.

Value Creation for Customers

A successful business strategy centres on understanding value creation . It involves the difference between customer willingness to pay (WTP) and the price of goods or services . The strategy aims to widen these gaps for customers, the firm, suppliers, and employees. By increasing customer delight, firm margin, supplier surplus, and employee satisfaction, businesses create value for all stakeholders. Engaging stakeholders and developing employees are crucial components of a sustainable strategy.

Download the Complete Value Creation Model package, including instructions for putting it to work for you today.

The UNITE Value Creation framework

Enhancing customer satisfaction and boosting customer delight.

A well-crafted business strategy , deeply rooted in customer-centric principles, becomes the driving force behind tailored products and services that meet specific customer needs. This strategic approach optimizes every customer touchpoint, ensuring consistent and delightful experiences. By fostering a dynamic and adaptable response to changing customer preferences , business strategy enables organizations to stay ahead in a competitive landscape. Moreover, the continuous improvement cycle embedded in strategic planning allows businesses to identify and address pain points , creating a brand experience that goes beyond meeting expectations—it consistently exceeds them, fostering enduring relationships with satisfied and delighted customers.

Internal Business Performance Guide

Internally, a strategic business framework acts as a guiding force for optimal performance. It aligns teams, resources, and processes, fostering a collaborative environment where every individual works cohesively toward common objectives. This alignment enhances operational efficiency and overall effectiveness.

Identify Opportunities and Trends in the Future

Strategic thinking also includes proactive opportunity identification , allowing businesses to capitalize on emerging trends and innovative possibilities for sustained growth. It involves not only addressing current challenges but also anticipating future trends and opportunities. By incorporating this foresight into the business strategy, organizations position themselves as industry leaders, always staying one step ahead in a dynamic business landscape. This proactive approach extends to not just mitigating risks but also actively identifying and capitalizing on emerging opportunities.

Create a Competitive Advantage

Business strategy acts as the cornerstone for businesses aiming to carve out unique positions in the market. Through strategic differentiation, organizations can identify and leverage their strengths while addressing weaknesses, positioning themselves uniquely against competitors. Integrating innovation and foresight into the strategic business framework, empowers businesses to stay at the forefront, consistently delivering value that sets them apart, thereby establishing a sustainable and resilient competitive advantage.

Create a Whole organisational vision

A successful business strategy extends its impact beyond individual initiatives; it encompasses the entire organization. It nurtures a shared vision that aligns everyone toward a common purpose. This cohesive vision not only enhances internal cohesion but also provides a roadmap for sustained growth and success.

10 Key Components of Business Strategy

Developing an effective business strategy involves considering multiple components. 

1- Vision and Business Objectives

In business strategy , the component that lays the very foundation is a compelling vision and precisely defined business objectives. They not only provide direction but also serve as the bedrock for effective decision-making and resource allocation, ensuring that every aspect of the business aligns seamlessly with the overarching strategy. In essence, a well-crafted vision and business objectives are integral components, shaping the very essence of strategic initiatives.

The SWOT analysis emerges as a pivotal component of business strategy . It goes beyond a mere examination of internal strengths and weaknesses or external opportunities and threats; it forms the bedrock for strategic planning . At Digital Leadership, we understand the significance of conducting a SWOT analysis as an indispensable element of business strategy. This comprehensive evaluation becomes the compass, guiding organizations to capitalize on their strengths while tactfully addressing weaknesses. Thus, SWOT analysis stands as an essential cornerstone, providing the strategic clarity needed to navigate the competitive business terrain effectively.

By incorporating The UNITE SWOT Framework into business strategy, organizations gain a comprehensive understanding of their internal landscape and external environment, paving the way for more informed, innovative, and adaptive strategic planning.

You can now access the complete SWOT Framework Package, including a full presentation, related models and instructions for use.

The SWOT / TOWS Analysis Framework

3- core values and resource allocation.

Aligning business strategy with core values ensures ethical decision-making. Strategic resource allocation ensures that resources are deployed efficiently to achieve business objectives.

4- Tactics and Operational Delivery

Effective tactics translate business strategy into action. A well-defined operational plan ensures that day-to-day activities contribute to overarching strategic goals .

5- Measurement and Analysis

Continuous measurement and analysis of key performance indicators (KPIs) help organizations track progress and make data-driven adjustments to their strategy. In business strategy , the relentless pursuit of success demands a vigilant eye on performance metrics and key performance indicators (KPIs). Measuring progress against predefined KPIs serves as a compass, providing real-time insights into the effectiveness of strategic initiatives. This data-driven approach enables organizations to gauge the impact of their actions, identify areas of success, and pinpoint areas that may require strategic recalibration.

6- Supply Chain Management

Supply Chain Management involves the end-to-end oversight of the processes and activities that transform raw materials into final products or services and deliver them to customers. In the realm of business strategy , an efficiently managed supply chain contributes to the seamless execution of strategic initiatives.

7- Integrating Technologies

Strategic integration of cutting-edge technologies, such as AI, IoT, and blockchain, is vital for keeping organizations at the forefront of innovation. This involves leveraging technology to enhance various aspects of business processes. By incorporating emerging technologies into the fabric of the business strategy , organizations can respond effectively to changing market dynamics, customer expectations, and industry trends.

8- Business Process Management

Efficient business processes are integral to successful strategy execution , BPM guides organizations in optimizing their processes for maximum efficiency, ensuring seamless alignment with strategic objectives. As organizations navigate the complex landscape of business strategy , BPM serves as a foundational element, ensuring that operational activities are not only efficient but also in harmony with the broader vision and objectives set forth in the strategic plan.

9- Business Intelligence and Analytics

Informed decision-making relies on accurate data. Incorporating business intelligence and analytics into the business strategy ensures that decisions are data-driven and aligned with organizational goals, fostering a culture of continuous improvement.

10- Competitive Analysis

Understanding the competitive landscape is vital for informed decision-making, it assists organizations in conducting comprehensive competitive analyses and provides valuable insights to inform strategic choices and maintain a competitive edge.

Business Strategy Development in 10 Strategic Steps

Creating a business strategy is a meticulous process that requires careful consideration. Develop a business strategy   through the following ten strategic steps:

Step (1): Conduct a SWOT Analysis

Embarking on the business strategy journey begins with a thorough SWOT analysis, delving into the intricacies of internal strengths and weaknesses, coupled with external opportunities and threats. This foundational step serves as a compass for businesses, providing a nuanced understanding of their current position in the market landscape. In this comprehensive analysis, internal strengths are scrutinized to leverage and optimize, weaknesses are identified for targeted improvements, opportunities are explored for strategic expansion, and threats are assessed for proactive mitigation.

Step (2): Identify your Business Purpose

Moving forward in the strategic roadmap, it is imperative to distinctly define the purpose that drives the organization’s existence. This step involves a meticulous examination of the company’s mission, vision, and values to articulate a clear and concise business intention and purpose. By aligning the business strategy with the overarching mission and business purpose , businesses can foster coherence, ensuring that every strategic move resonates with the core values that define the organizational identity. This alignment not only serves as a guiding force for decision-making but also establishes a strong foundation for sustainable growth and impact in the marketplace.

TheUNITE Business Intention Model guides organizations to distinctly define the driving force behind their existence. In a meticulous examination encompassing mission, vision, and values, the UNITE model ensures the articulation of a clear and concise business intention and purpose and it establishes a robust foundation for sustainable growth and impact in the marketplace.

You can now access the complete Business Intentions Package, including a full presentation, related models and instructions for use.

The UNITE Business Intentions

Step (3): setting up business goals.

In the intricate landscape of business strategy development , the third step involves the meticulous process of setting up clear and measurable business goals , the significance of well-defined goals provide a structured roadmap. By articulating specific, measurable, achievable, relevant, and time-bound (SMART) objectives, businesses can ensure that their strategic efforts are purposeful and directed. Through this strategic clarity, organizations can align their resources, efforts, and initiatives with a unified vision, fostering a cohesive and results-oriented approach.

Step (4): Defining Your Competitive Advantage

Defining competitive advantage emerges as a linchpin in the framework of business strateg y, this step holds paramount importance in the strategic narrative, serving as a compass for organizations navigating the competitive terrain. By identifying and leveraging a distinctive competitive advantage, businesses create a unique value proposition that sets them apart. This strategic differentiation becomes a guiding force, steering organizations towards long-term success in a dynamic market.

Step (5): Opportunity Identification in the Market

As organizations embark on the business strategy journey, opportunity Identification emerges as a pivotal and forward-looking endeavour. In this nuanced phase of business strategy development , the focus shifts to the external landscape, where astute organizations keenly observe, analyze, and capitalize on emerging opportunities. By conducting a comprehensive scan of the market, businesses position themselves as agile players ready to navigate the currents of change. It empowers organizations to strategically align resources and capabilities to harness them effectively. In a dynamic business environment, seizing the right opportunities becomes a transformative catalyst for sustained growth and resilience.

Step (6): Build your Team

In the intricate tapestry of business strategy development , building your team stands as a critical pillar defining the success trajectory. At this juncture, the focus transcends individual capabilities to the collective strength of a cohesive and synergistic team. The significance of aligning team dynamics with strategic objectives, fostering collaboration, and harnessing diverse talents. As organizations navigate the complex strategic landscape, a well-built team becomes the driving force, propelling the strategic vision into actionable reality.

Step (7): Enhance Value Creation for Customers, Suppliers, and Employees

In business strategy enhancing value creation for customers, suppliers, and employees, takes centre stage as a transformative act beyond customer-centric approaches, business strategy framework extends its embrace to suppliers and employees, recognizing them as integral stakeholders in the strategic equation. This step signifies more than a transactional give-and-take; it embodies a commitment to fostering lasting relationships and mutual growth from customer delight to supplier partnerships and employee satisfaction, our approach ensures a harmonized symphony of value that resonates through every facet of the organization.

Step (8): Develop your Business Strategy Execution Framework

Developing your business strategy execution framework emerges as the meticulously composed score that transforms strategy into tangible action to execute your  Successful Business Strategy.  It becomes crucial to establish a clear roadmap for turning your strategy into actionable steps and determining the daily activities of the entire team.

The UNITE Strategy Execution Model holds immense importance in guiding organizations through the transformation of strategic plans into actionable steps, ensuring a seamless alignment of daily activities with the overarching business strategy .

You can now access the complete Pirate Metric Funnel (AAARRR) Package, including a full presentation, related models and instructions for use.

The UNITE Pirate Metrics Funnel (AAARRR)

The Strategic Planning Process guides you through the stages of creating a successful Business Strategy . Utilizing a Business Model Canvas can help you visualize the various components of your operations more effectively.

Download the Complete eXtended Business Model Canvas package, including instructions for putting it to work for you today.

11 Types of Business Strategy with Real-life Business Strategy Examples

When formulating your Business Strategy, it’s valuable to consider the various shapes it can take. Each strategy is viable in its own right, and the direction you choose will be influenced by your Business Purpose and Objectives, as well as the resources available to you.

1) Cost Leadership Business Strategy

Cost Leadership is a strategic approach where a company aims to be the lowest-cost producer in its industry. This strategy involves achieving a competitive advantage by offering products or services at the lowest possible cost. Key elements include economies of scale, operational efficiency, stringent cost control, and often, a pricing strategy that undercuts competitors.

Example: Walmart business strategy

It exemplifies this strategy by leveraging large-scale operations and efficient supply chain management to provide products at lower prices than competitors. While effective, maintaining cost leadership requires a continuous emphasis on efficiency, cost control, and market share growth. However, companies pursuing this strategy must be cautious of potential imitation and should balance cost-saving measures with innovation to stay competitive.

2) Focused Business Strategy

A Focused Business Strategy, also known as a niche or segmentation strategy, involves targeting a specific segment of the market rather than trying to appeal to the entire market. This strategy is effective when a company identifies a particular market segment with unique needs and preferences.

Examples: Tesla Business Strategy

It employs a focused strategy by concentrating on the electric vehicle market. Instead of catering to the broad automobile market, Tesla targets consumers seeking high-performance electric vehicles. Focused strategies allow companies to tailor their products or services to meet the distinct demands of a niche market, often resulting in higher customer loyalty and less competition. However, it requires a deep understanding of the chosen segment and the ability to provide superior value to customers within that niche.

3) Differentiation Business Strategy

A Differentiation Business Strategy involves offering unique and distinctive products or services that stand out from competitors in the market. Apple, a prominent example, excels in differentiation through its innovative product designs, user-friendly interfaces, and ecosystem integration.

Examples: Apple Business Strategy

Apple’s strategy focuses on creating premium, high-quality products that provide a unique user experience, setting them apart from competitors. Differentiation strategies often lead to higher product prices, but they also cultivate brand loyalty and perceived value among customers. Successful differentiation requires continuous innovation, investment in research and development, and a keen understanding of customer preferences. Companies employing this strategy strive to build a strong brand image that becomes synonymous with quality and innovation in the minds of consumers.

let’s categorize Apple’s strategy into two types of Differentiation Business Strategy: Broad Differentiation and Focused Differentiation .

• Apple’s Approach: Apple adopts a broad differentiation strategy by offering a wide range of unique and distinctive products to a large consumer market.
• Diverse product line, including iPhones, iPads, MacBooks, Apple Watch, and more.
• Emphasis on innovative design, cutting-edge technology, and user-friendly interfaces across all product categories.
• Premium pricing is justified by perceived quality, innovation, and the Apple brand.
• Apple’s Approach: Within its broad product line, Apple also employs a focused differentiation strategy by tailoring certain products to specific market segments.
• Examples include specialized products like the Mac Pro for professional users and the iPad Pro for creative professionals.
• Customization and features geared towards the unique needs of specific user groups.
• Premium pricing for specialized products, targeting customers willing to pay for enhanced capabilities.

4) Sustainable Business Strategy

Sustainable Business Strategies centre around environmentally conscious practices, social responsibility, and long-term viability. Companies adopting sustainable strategies aim to minimize their environmental impact while contributing positively to society.

Examples of business Strategies

• Tesla Business Strategy: Tesla exemplifies a sustainable business strategy with its commitment to electric vehicles, renewable energy solutions, and reducing carbon footprints. By prioritizing sustainability, Tesla not only aligns with growing environmental concerns but also attracts a consumer base increasingly valuing eco-friendly practices. Sustainable strategies extend beyond environmental aspects, encompassing ethical labour practices, community engagement, and transparent governance.
• Coca-Cola Business Strategy: Coca-Cola implements an Environmental Sustainability Strategy to reduce its carbon footprint and water usage, emphasizing responsible sourcing and recycling initiatives.
• IKEA Business Strategy: IKEA adopts an Eco-Friendly Business Approach by promoting sustainable sourcing of materials and designing products with a focus on longevity and recyclability.

These companies demonstrate a commitment to addressing global challenges, such as climate change and resource depletion, by integrating sustainable practices into their core business strategies. Sustainable strategies not only contribute to corporate social responsibility but also resonate with environmentally conscious consumers, fostering a positive brand image.

5) E-commerce Business Strateg y

Ecommerce Business Strategies revolve around effective online retailing, leveraging digital platforms, and optimizing customer experiences. Amazon, a prime example of a successful e-commerce strategy, employs an omnichannel retailing approach. This involves seamlessly integrating online and offline channels, providing customers with a cohesive shopping experience.

Example of a business strategy: Amazon Business Strategy

Amazon’s vast product selection, efficient logistics, and customer-centric focus contribute to its dominance in the ecommerce sector. The company strategically leverages technology, such as AI algorithms for personalized recommendations, to enhance user engagement. By prioritizing convenience, diverse product offerings, and customer satisfaction, Amazon exemplifies how ecommerce strategies can lead to market leadership and sustained growth in the digital era.

6) Competitive Business Strateg y

Competitive Business Strategies are essential for organizations seeking to gain a market advantage and outperform rivals.

Example of business strategy: Nike business strategy

Nike, adopts a differentiation strategy by focusing on innovation, branding, and product design. Nike’s marketing and product development efforts create a distinct brand image and a perceived higher value, justifying premium pricing. These examples showcase how varied competitive strategies align with business goals, enabling companies to thrive in diverse market landscapes.

7) Design Thinking in Business Strategy

Design Thinking in Business Strategy involves placing a strong emphasis on user experience, innovation, and customer-centric solutions.

Design Thinking business strategy examples:

• Zara business strategy : It adopts an Agile and Customer-Centric Approach in its fashion retail strategy, responding quickly to market trends and customer preferences.
• Starbucks business strategy : it differentiates itself through an Experience-focused Store Design, creating inviting and personalized environments that enhance the overall customer experience.

Design Thinking goes beyond aesthetics; it shapes the entire product or service journey, ensuring that businesses resonate with their target audience and remain adaptable to evolving market needs. These real-life examples showcase the transformative power of design thinking in crafting successful business strategies.

8) Data Driven Business Strategy

Data-Driven Business Strategies harness the power of information to optimize decision-making and enhance customer experiences.

Data Driven Business Strategy Examples

• Netflix Business Strategy: Its Personalized Content Recommendation Strategy, utilizes data analytics to suggest tailored content, engaging users and increasing satisfaction.
• McDonald Business Strategy : It adopts a Data-Enhanced Customer Experience strategy, leveraging customer data to personalize offerings and improve service efficiency.

These business strategy examples illustrate the transformative impact of data-driven approaches, emphasizing the importance of leveraging insights for strategic decision-making and creating a more personalized and responsive customer journey. In today’s digital landscape, businesses that harness the potential of data gain a competitive edge by staying attuned to customer preferences and market trends.

9) Technology Business Strategy

Technology Business Strategies exemplified by Google and YouTube showcase innovative approaches to digital market dominance. Google business strategy includes pioneering search algorithms, cloud services, and diverse digital products. And youtube’s business strategy focuses on Digital Platform Expansion, continually evolving as a video-sharing giant and expanding its reach. These strategies highlight the importance of diversification, continuous innovation, and a commitment to technological advancement. In the fast-paced tech industry, adapting and expanding digital capabilities ensure long-term relevance and sustained growth, marking these companies as trailblazers in the ever-evolving digital landscape.

10) Business Turnaround Strategy

Business Turnaround Strategies, as exemplified by IBM and Microsoft, underscore the importance of adaptability and strategic redirection in the face of challenges. IBM business strategy is a Successful Business Transformation strategy that stands as a testament to its ability to reinvent itself, transitioning from traditional hardware and services to a focus on emerging technologies like cloud computing and artificial intelligence. On the other hand, Microsoft’s Corporate Business Strategy showcases the company’s resilience in navigating market shifts and leveraging its strengths in software and cloud services. These examples highlight the significance of strategic agility, innovation, and a proactive approach in revitalizing businesses for sustained success.

11) Retail Business Strategy

Retail Business Strategies encompass a diverse range of approaches tailored to the dynamic consumer landscape. Emphasizing customer experience, streamlined operations, and omnichannel engagement, successful retail strategies strive to meet evolving market demands. These strategies often include personalized customer interactions, inventory optimization, and seamless online and offline integration. Retail giants continually refine their approaches, with a focus on adaptability, innovation, and leveraging technology to enhance the shopping experience. The retail sector’s strategies evolve to align with shifting consumer behaviors, making agility and customer-centricity key elements in sustaining competitiveness.

Digital Business Strategy

Digital business strategy is a comprehensive approach that organizations adopt to leverage digital technologies for transformative outcomes. In the digital era, businesses recognize the need to go beyond traditional models and embrace digitalization to stay competitive. This strategy involves integrating digital technologies into all aspects of a business, from operations and customer interactions to product/service delivery. Key components often include data analytics, cloud computing, artificial intelligence, and innovative digital platforms.

The goal is to enhance efficiency, customer experience, and overall organizational performance. Companies implementing a digital business strategy position themselves to navigate the digital landscape, respond to market changes swiftly and unlock new opportunities for growth. It’s a proactive approach that embraces digital transformation as a fundamental driver of success in the modern business landscape.

Business Growth Strategy

Business Growth Strategy refers to the deliberate and proactive planning and actions taken by organizations to expand and increase their market share, revenue, and overall scale. This strategy is crucial for organizations aiming to progress and thrive in competitive markets. Business growth can take various forms, such as expanding product lines, entering new markets, acquiring other businesses, or diversifying operations. It involves identifying opportunities for expansion, assessing potential risks, and developing a comprehensive plan to achieve sustainable growth. Successful business growth strategies align with the organization’s overall objectives and market conditions, ensuring that expansion efforts contribute positively to the company’s long-term success. Implementation often requires a combination of innovation, strategic partnerships, and operational excellence to capitalize on opportunities and navigate challenges effectively.

Corporate Strategy vs Business Strategy: What’s the Difference?

Corporate strategy and business strategy are distinct yet interconnected concepts that guide an organization’s overall direction and decision-making. Here’s a breakdown of the key differences between the two:

Corporate Strategy:

• Scope: Corporate strategy involves decisions at the highest level of an organization, addressing its overall mission, vision, and goals.
• Focus: It is concerned with how the organization as a whole will achieve success and sustain its position in the market.
• Decision-Making: Corporate strategy decisions often involve choices regarding diversification, mergers and acquisitions, resource allocation, and portfolio management.
• Time Horizon: Corporate strategy tends to have a longer time horizon and looks at the organization’s position in the industry over an extended period.

Business Strategy:

• Scope: Business strategy is more specific, focusing on a particular business unit, product line, or market segment within the organization.
• Focus: It is concerned with how a specific part of the organization will compete effectively in its market and achieve its objectives.
• Decision-Making: Business strategy decisions involve choices related to product development, market positioning, pricing, and competitive advantage.
• Time Horizon: Business strategy often operates within a shorter time frame, addressing challenges and opportunities in the near to medium term.

In essence, corporate strategy sets the overall direction of the entire organization, while business strategy zooms in on how individual business units or segments will achieve success within that broader framework. Together, they ensure alignment between the organization’s overarching goals and the specific actions taken at different levels.

What is Business Level Strategy

Business-level strategy pertains to the intentional and strategic actions undertaken by companies to attain a competitive advantage within their designated market segments. This strategy entails crucial decisions regarding resource allocation, product differentiation, and the creation of distinctive value for customers. Through the successful implementation of a clearly defined business-level strategy, companies can establish a unique market position, allure customers, and foster sustainable growth.

Strategies in organizations operate at three distinct levels: Corporate, Business, and Functional.

• Corporate Level : This is the highest level, where top management establishes the strategic plans, including the mission and vision statements. Corporate-level strategies profoundly influence the long-term performance of the organization, guiding decisions related to growth, acquisitions, diversification, and investments.
• Business Level : Business level strategies align with the corporate vision but focus on a specific business or market segment. At this level, the broader vision and objectives are translated into tangible strategies that outline how a business will compete in its specific market.
• Functional Level : Functional level strategies address how various departments such as Marketing, HR, or R&D can support the defined business and corporate strategies. These strategies ensure alignment and coordination across different functions within the organization.

It’s common for a company to have multiple strategies at each level, reflecting the diverse needs of each layer. While managing multiple strategies introduces the risk of conflicting priorities, effective management can mitigate these risks.

Integrating Digital Transformation Strategy with Innovation Strategy in Your Business Strategy

Integrating Digital Transformation Strategy with Innovation Strategy is a dynamic approach that propels organizations to the forefront of the rapidly evolving business landscape. This synergy harnesses the power of technological advancements and creative ideation to drive comprehensive organizational change .

• Digital transformation acts as the enabler, ensuring that technological innovations are seamlessly integrated into various facets of the business.
• Innovation strategy fosters a culture of creativity, encouraging novel ideas and solutions to meet evolving market demands.

By strategically aligning these two pillars within the broader context of business strategy, organizations not only adapt to the digital era but also position themselves as pioneers, capable of continuous innovation to stay ahead of the competition. This interconnected strategy promotes agility, resilience, and a forward-looking mindset, essential elements for sustainable success in today’s dynamic business environment.

Frequently Asked Questions

1- what is a strategy.

A strategy is a meticulously devised plan that outlines the approach an organization takes to achieve its long-term goals. It involves a comprehensive and forward-thinking approach to decision-making.

2- What does strategic mean in business?

In business, being strategic encompasses making decisions that contribute not only to immediate success but also to the long-term sustainability and competitive advantage of the organization. It involves foresight and a proactive mindset.

3- Who is responsible for business strategy?

Business strategy is a collaborative effort led by senior leadership. However, the responsibility extends to experts specializing in strategic planning , such as the professionals at Digital Leadership. These experts play a pivotal role in crafting effective and innovative strategies tailored to the unique needs of organizations, ensuring a holistic and forward-looking approach.

Related Posts

Business level strategy: examples & types for business strategy success.

In strategic management, businesses use a variety of approaches to craft a1

Porter’s Generic Strategies Tips for Business Competitive Strategy 

In business competition, understanding and effectively implementing strategic frameworks are crucial for1

Digitization vs Digitalization: Real-life Examples And How to Digitize

The terms digitization, digitalization, and digital transformation have become increasingly prevalent. These1

Digital Transformation Guide For Digital Transformation Journey

This article on Digital Leadership aims to offer a preliminary guide to1

Recent Posts

Examples and Types of Effective Functional Level Strategy for Business Support

A key objective of any business strategy is to improve operational efficiencies...

The Three Levels of Strategy: Corporate Strategy, Business Strategy, and Functional Strategy

Understanding the intricate levels of strategy is crucial for any organization aiming...

Register For Your FREE 
Innovation WorkShop Seat Now!

Learn how to overcome the 90% failure rate in innovation from a master innovator and best-selling author.

Expert tactics to boost your innovation odds.

Insights on capturing customer needs for innovation.

Tools that turn your ideas into triumphs.

First name *

Last name *

Professional E-mail *

I want to be kept up-to-date and accept the privacy statement *

By signing up, you agree to receive news and accept the privacy statement (mandatory)

Verify your e-mail address now by entering the 6-digit code we’ve just sent to your inbox

Don't receive Code? Resend code

Last one step

Help us better understand our innovation Show members

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Seniority * Please Select Junior Consultant Senior Consultant Manager Senior Manager Director VP SVP Partner CXO Board Member

Areas of interest * Innovation Digital Transformation Culture & Organization IT Strategy & Bus. Alignment Customer Experience

Discover the largest library of innovation & transformation tools on the entire Internet!

LOG IN VIA E-MAIL

Forgot password?

New to Digital Leadership? Create your account

Thanks, We’ve Received Your Updated Details

Learn how to overcome the 90% failure rate in innovation from a master innovator & bestselling author!

Your e-mail address: * Your first name: *

One Last Step..

Help us better understand the UNITE community

Free guide to improve your innovation success rate*

Our 35-page comprehensive innovation guide covers the key areas why innovation fails. While it cannot cover all the solutions (that would take books to fill), it provides you with a convenient starting point for your analysis and provides further resources and links to the corresponding UNITE models, ultimately allowing you to work towards a doubling and tripling your chances of success.

Get access to the UNITE Models now!

Discover the largest library of innovation & transformation tools on the internet!

Choose Your Password *

Confirm Your Password *

Already have an account? Log in

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bhutan Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland State of Palestine Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United States United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Editable UNITE models (PowerPoint) included

Most of our models and canvases are designed to be applied! 


To help you personalize them to your exact business requirements, you can download fully editable versions of the UNITE models available (PowerPoint format)!

They are straightforward to work with, and you can directly incorporate them into your presentations as you need…thus saving countless hours of replication!

PS: did you know that you are also getting hi-res print-ready versions for your workshops?

Monthly live webinars

Each month we host our exclusive, invitation-only webinar series where one of our industry-leading experts updates our members on the latest news, progress and concepts around business strategy, innovation and digital transformation, as well as other related topics. 



You will receive the book in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

Bi-weekly live group Q&A sessions

These sessions are your opportunity to bring any questions or challenges you’re facing and receive expert guidance on the spot. 


Come and be a part of engaging discussions where your unique concerns are heard and addressed.

1x personal coaching session / month

If you are occasionally looking for a sparring partner or you need limited support, then this option will be ideal for you. Coaching sessions are 1-2 hours where we can discuss any challenge or opportunity you are currently facing.

If you need a few more hours outside of this provision, then these could be billed transparently.

Unlimited video call support! – it’s like always making the right decision!

We believe support shouldn’t be limited. Because we typically find that the occasional hour just doesn’t cut it – particularly if you and your team are in the midst of a large and complex project.

Your time with Stefan is therefore unlimited (fair usage applies) – in his function as coach and sparring partner. That does mean that you will still have to do the work – we cannot take that off you, unless you hire us as consultants. But you will get valuable strategic insight and direction to make sure you are always focusing your efforts where they will lead to the best results.

One personal coaching session / month 
+ unlimited support via e-mail & WhatsApp

We believe support shouldn’t be limited. If you generally know what you are doing but want a sparring partner to frequently raise questions to, this is the perfect choice!

In addition to your monthly 1-1 live coaching sessions with Stefan, you will also get unlimited support from him via email and WhatsApp messaging (fair usage applies). This not only allows you to get valuable strategic direction in your calls, but also gives you instant access to expert help as you work through your plans each month.



The fact that support is text-based means that we can speed up our responses to you while keeping the overall cost of support down.

Welcome gift of our book 
 “How to Create Innovation” 
 (digital + physical editions)*

As a welcome gift, you will receive the both the digital and physical version of our book “How to Create Innovation”, which covers numerous relevant resources and provides additional deep dives into our UNITE models and concepts.


The print version will be shipped out to you on sign-up. The digital version will be emailed to you, and comes in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

1x major workshop or 2x smaller workshops / month

1x major or 2x smaller workshops based on the UNITE models.

• Topics covered: almost any challenge under the header of #strategy, #innovation or #transformation, leveraging the UNITE models.
• Hands-On Learning: solve your challenges while learning the practical application of the UNITE models and walk away with concrete plans and tools to take your next steps.
• Industry thought leadership: facilitated by Stefan, the founder of Digital Leadership and the main author of the UNITE models, ensuring top-tier guidance and knowledge sharing.
• Collaborative approach: engage in interactive sessions that foster collaboration, idea exchange, and real-time problem-solving among peers and industry leaders.
• Continuous Improvement: Regular workshops ensure ongoing development in your organization staying ahead of industry trends and customer needs.

Access all of our UNITE models, 
 (incl. editable & print versions)

All of our Professional plans offer full access to the following:

• 6x UNITE model package downloads are included per month, if you need something in addition to these however, please let us know!
• Hi-res, print-ready versions you can use in your workshops
• Fully editable PowerPoint versions where applicable – personalize to your needs.
• Exclusive access to our vault of never-before-published strategic materials. We have much more to share – a lot of our concepts have never been published!

Exclusive access to our private UNITE community (upcoming)

We are currently in the process of launching our brand new community., we are designing our community to specifically help you:.

• Get answers to questions (“How do I …”)
• Share leading practices & knowledge
• Jointly develop new models
• Network amongst a highly qualified group of peers

Please, select the reason

Cancelling your plan will deactivate your plan after the current billing period ends. You will not be charged further, but also won’t be able to access [exclusive features/services].

• Cost-related issues
• Unsatisfied with the service
• Features I need are missing
• Switching to a different service
• Other (Please specify)

Book Your Initial Blueprint Session Now

Simply fill out the below form and book in a time for our initial session that works for you. This initial session is free, no strings attached, and is where we can discuss your Blueprint needs more in-depth before moving forward.

Stefan F. Dieffenbacher

Founder of digital leadership.

Adam D. Wisniewski

Partner for it strategy & business alignment.

Get in touch with Digital Leadership

Speak to our team today to find the best solution for your business to grow and scale.

We are here to support you across the entire lifecycle in all topics related to #digital, #innovation, #transformation and #marketing!

Stefan F. Dieffenbacher Founder of Digital Leadership

Contact Us!

Contact form, contact details, book a call.

Title, first name & last name * Email address * Phone number Please let us know how we can best support you! *

By clicking “Send”, I agree to Terms of Service and Privacy Policy.

Let’s have a conversation!

“Please be invited to reach out! We are happy to help and look forward to a first meeting!”

+41 (0) 44 562 42 24

[email protected]

Schedule Your Call With Our Team

Find a time on our calender that best suits you !

Founder and CEO of Digital Leadership

SCHEDULE YOUR INITIAL CALL

A Quick Survey!

What is the main challenge you're currently facing in your business?

You Want To Drive Change?

Let’s find the best solution for your business to grow and scale sustainably!

Let’s kick start it!

We will uncover your current business situation and goals and provide you with a bespoke solution that helps you drastically grow your business working with us.

Stefan F. Dieffenbacher, M.B.A.

Feedback about our consulting that we are proud of

Read the reviews and make sure that this is not a waste of time, but a super effective tool.

You want to drive change?

Schedule your free business assessment call with our founder.

On this call, we will uncover your current business situation and goals and talk about how to drive change and solve your need.

Choose the meeting type that applies to your needs and schedule a time to meet with someone from our team. We look forward to speaking with you soon!

Schedule Your Free Business Assessment

Schedule Your Free Business Assessment Call With Adam D. Wisniewski

Welcome to our scheduling page.

Let’s Design your Customer Experience Blueprint !

In a uniquely designed 60 or 90 minute session* , we will …

• > identify where to start with near-certainty
• > define what approach it takes to create success in your organization

Based on the Blueprinting session, you will receive a tailored blueprint that aligns with your objectives, vision and goals, ensuring that your initiative is a success from start to finish.

In this session, you will be working together with Patrick Zimmermann, Associate Partner for Customer Experience

Let’s Design your Culture & Org-Change Blueprint !

In this session, you will be working together with Dr. Andreas Rein, Partner at Digital Leadership for Culture & Org Change

Let’s Design your Innovation Blueprint !

In this session, you will be working together with Sascha Martini, Partner at Digital Leadership for Innovation and Digital Transformation

Let’s Design your Transformation Blueprint !

In this session, you will be working together with Stefan F. Dieffenbacher, Founder of Digital Leadership Stefan is a global thought leader in the innovation space

Let’s Design your IT Strategy & Business Alignment Blueprint !

In this session, you will be working together with Adam D. Wisniewski, Partner for IT Strategy & Business Alignment

Patrick Zimmermann

Sascha Martini

Dr. Andreas Rein

Write a personalized review! Log in

Create Review

In today’s business environment, regardless of the product or service, leaders must develop a well-honed business strategy. Without clarity and intention, even the most innovative companies are unlikely to succeed. A successful business strategy must clearly define an organization’s objectives, decision-making processes and long-term business goals. It must also consider the organization’s target market and major competitors to help ensure that decisions are made with a holistic view of the existing landscape, facilitating long-term success. Through decades of research, business thinkers identified several types of business strategy that can help guide an organization’s plans.

Developing a business strategy involves critical thinking and extensive market research. As Professor Felix Oberlholzer-Gee of Harvard Business School emphasized , an effective business strategy requires a deep understanding of your company and a profound sense of optimism about its potential for exceptional performance. To achieve this nuanced understanding of an organization’s future operations, business leaders must carefully consider their primary objectives, core strengths and their target audience. It’s essential to identify the people they serve and determine the most effective ways to engage with them.

When an organization engages in comprehensive strategic planning, a well-defined business strategy can:

• Guide the decision-making process to prioritize initiatives and allocate resources effectively.
• Help ensure that all employees have well-defined goals and clear mandates for the organization.
• Enhance competitive advantage by creating a sustainable, informed edge over competitors.
• Create an agile company with the capacity to adapt quickly to market changes.
• Facilitate long-term planning as the organization grows.
• Provide a tangible foundation for performance benchmarks and employee evaluations.

Business strategies vary depending on the competitive environment and the operations of specific organizations. However, business experts and institutions identified several specific types of strategies. These business strategies can be categorized into 3 distinct types:

1. Corporate-level strategy

This strategy refers to decisions made by an organization’s top-level management. It often involves big-picture thinking and pertains to matters like mergers, acquisitions, portfolio management and diversification.

2. Functional-level strategy

Functional-level strategies are run on a smaller scale and focus on specific departments or areas of a business, such as human resources (HR) or finance. They are deployed to improve aspects of an organization’s operations and support corporate-level or business-level strategies.

3. Business-level strategy

This type of strategy is what most people understand as a business strategy. It relates to how an organization intends to gain a competitive advantage in its chosen market, whether through differentiation, competitive pricing or expansion into new markets.

Typically, comprehensive business-level strategies are combined with other strategy types. For instance, an operational strategy facilitates the alignment of production and delivery processes with the overall business plan. An innovation strategy, which aligns with the overall business strategy, guides how an organization incorporates new ideas or products into its overall plan.

Ideally, a well-defined business strategy must impact every department and aspect of an organization, providing clear priorities and objectives across teams like marketing, research and development and HR . With a clearly defined strategy identified early on, organizations can efficiently develop secondary business processes like forecasting or process management.

In the 1980s, Professor Michael Porter from Harvard Business School developed a series of generic strategies, which subsequent researchers built upon. These strategies continue to underpin the most widely employed business approaches. Large corporations and small businesses still use these classic business strategies. Porter’s original theory identified 3 fundamental types of business strategies, with one later splitting into two variants. These 3 core strategies include:

1. Cost leadership strategy

The cost leadership strategy focuses on gaining market share by providing goods or services at the lowest possible cost. Typically, these organizations operate on a large scale, often by using a network of franchises to enhance efficiency and speed. In organizations pursuing a cost leadership strategy, their competitive edge lies in providing the cheapest goods to a broad audience. Compared to other strategies, they allocate relatively fewer resources to research and development or advertising, as their success relies largely on economies of scale.

This focus on efficiency and scale can help these organizations withstand challenges from competitors and often results in high profits. However, the same focus on efficiency may impede their ability to adapt quickly. If the perception arises that the organization’s lower prices correspond to lower-quality goods, it may negatively impact the business .

2. Differentiation strategy

Organizations following a differentiation strategy aim to encourage consumers to pay a premium for a unique product or highly desirable product. This uniqueness might mean that the new product is more expensive but also more reliable or useful compared to competitors, or it might involve innovative features.

This business model needs careful consideration of marketing strategies and market dynamics. Businesses following a differentiation strategy often highlight their research and development efforts to convince customers of their product’s superiority. For example, Nike emphasizes its innovations in sportswear to differentiate itself from competitors.

When effectively implemented, this strategy may lead to higher profit margins as loyal customers repeatedly choose the brand. It may also reduce the threat of competitors if the unique product is widely viewed as such, fostering significant brand loyalty. However, organizations remain vulnerable if a competitor offers a cheaper alternative for price-sensitive buyers.

3. Focus strategy

The focus strategy, also known as the niche strategy, involves aligning an entire organization’s efforts around a highly specific group of customers, product line or geographic market. This strategy often aims to target undiscovered market segments or serve an under-served demographic.

While this strategy may sometimes resemble differentiation or cost-leadership strategies, it focuses on a smaller consumer group. Businesses deploying a focus strategy aim to capture a specific market rather than exponentially expand their customer base through low pricing or novel product development. There are 2 types of focus strategies for niche markets:

• Cost-focus strategy: This type of strategic management focuses on offering products to a specific niche market at a lower price than competitors.
• Differentiation-focus strategy: This type of business strategy may offer products to its niche market at a higher price but involves developing products and services that are seen as superior to the competition.

Businesses deploying either focus strategy can benefit from increased expertise gained from specializing in a narrow niche. This specialization allows them to offer products and services that are tailored specifically to their relatively small market segment, potentially fostering more personalized customer interactions and building customer loyalty. Since the target audience for the product tends to be limited, businesses that use this model can expect higher efficiency and lower marketing and operational costs.

Porter’s core business strategies , which started a revolution in the business world, continue to influence contemporary business practices. Porter argued that organizations should choose one of these fundamental strategies to avoid resource wastage and confusion in their business goals. According to the professor , choosing a strategy is as much about deciding what an organization won’t do as it is about what it will do.

In the years following the development of Porter’s generic strategies, some thinkers suggested the possibility of exploring hybrid business strategies that combine aspects of multiple strategies. Still, the fundamental insight from Porter’s ideas is that organizations need clearly defined boundaries and goals in structuring their practices resonated for over 3 decades and remains a guiding principle for today’s business leaders.

Porter’s core strategies can be implemented as corporate-level, functional-level or business-level strategy frameworks. The current realities of customer preferences and market dynamics require organizations to incorporate all 3 types of business strategy.

Emerging technology and social forces create evolving customer experiences, leading to changing expectations and demands that disrupt traditional business models. IBM Consulting® offers professional services that assist organizations in navigating this dynamic, complex and competitive world by aligning transformation with business strategy, fostering competitive advantage and a clear focus on business impact.

Learn more about IBM Consulting strategy

Explore how IBM Garage can help your business strategy

Business Strategy

Start thinking like the top strategists with this course from Harvard Business School (HBS) Online.

Associated Schools

Harvard Business School

What you'll learn.

Assess business opportunities through the lens of value creation

Apply the value stick, a research-based framework for strategy formulation, to key strategic decisions that companies face today

Master the language and tools of business strategy to contribute meaningfully to strategic conversations and your team’s success

Create value for customers, employees, and suppliers, often in surprising ways, that rival companies will find hard to match

Build sustainable success with the help of complements and network effects

Course description

Business Strategy is an online course that enables anyone to think and act strategically. You’ll learn an effective, easy-to-grasp framework that some of the world’s best companies use to create value and achieve outstanding financial performance.

Instructors

Felix Oberholzer-Gee

You may also like.

Creative Thinking: Innovative Solutions to Complex Challenges

Learn how to grow a culture of creativity to innovate competitive solutions.

Innovation and Strategy

Strengthen your organization’s capacity to drive innovation and achieve greater results.

Strategies for Leading Successful Change Initiatives: Mastery Session

Drive organizational change with innovative change management strategies and roadmaps for action.

Join our list to learn more

• Case Studies
• Free Coaching Session

The Ultimate Guide to Business Development: Strategies for Success

Last Updated:  

August 30, 2024

In today's competitive landscape, businesses are constantly seeking strategies to grow and succeed. Whether you're a startup founder or a seasoned exec, mastering business development is vital for your company's success.

This guide dives deep into the art of business development. Read on.

Key Takeaways on Winning Business Development Strategies

• Business development drives growth : BD helps identify new markets, target audiences, and growth opportunities, leading to increased revenue and long-term success.
• Market research is essential : Analysing market trends and customer behaviour allows businesses to tailor their offerings and stay competitive.
• Strategic partnerships create synergies : Collaborating with complementary businesses helps expand your reach, share resources, and drive mutual growth.
• Customer relationships fuel retention : Providing exceptional service and personalising interactions can turn customers into loyal advocates for your brand.
• A strong strategy is vital : Define clear goals, identify your target audience, and develop a comprehensive plan to guide your business development efforts.
• Technology enhances BD efforts : Utilise tools like CRM systems, data analytics, and social media to streamline tasks, gain insights, and engage your audience.
• Measuring success is key : Track key performance indicators (KPIs) to assess progress, refine your strategy, and continuously improve your business development initiatives.

Why Business Development Matters

Business development or BD plays a pivotal role in a company's success. It helps organisations identify potential markets and customer segments. By doing so, businesses can tailor their products and services to meet specific needs.

This thereby increases revenue. One of the factors it can affect is sales management.

Effective BD fosters innovation. It encourages companies to stay ahead of industry trends and adapt to changing market dynamics. This adaptability is crucial in today's fast-paced business environment.

Lastly, BD strengthens relationships. Building and nurturing partnerships can open doors to new:

• opportunities

These relationships can be instrumental in driving growth and achieving long-term success.

Identifying Market Opportunities

The first step in BD is identifying market opportunities. This involves researching and analysing market trends to uncover potential areas for growth. Tools like SWOT analysis can help you assess your business and find opportunities.

This means:

• Opportunities

Understanding your target audience is also crucial. Conduct market research to gather customer insights:

• Preferences

This information will guide your business development efforts. It also helps you tailor your offerings to meet market demands.

Stay updated with industry news and trends. You can gain valuable insights by:

• Subscribe to industry publications
• Attend conferences
• Participate in webinars

Staying informed will help you identify emerging opportunities and stay ahead of the competition.

Building Strategic Partnerships

Strategic partnerships are a cornerstone of BD. Collaborating with other businesses can create synergies and drive mutual growth. Identify potential partners whose strengths complement your own.

Look for opportunities to collaborate on:

• Joint ventures
• Co-marketing initiatives
• Product development projects

Building trust is essential in any partnership.

Establish clear communication channels and set mutually beneficial goals. Regularly review the partnership's progress and address any challenges promptly.

A strong partnership can lead to:

• Increased brand visibility
• Expanded customer reach
• Shared resources

Networking is another key aspect of building partnerships. You can:

• Attend industry events
• Join professional associations
• Connect with potential partners on social media

Building a robust network will open doors to new opportunities and foster valuable relationships.

Enhancing Customer Relationships

Strong customer relationships are vital for BD. Satisfied customers are more likely to become repeat buyers and advocates for your brand. Focus on:

• Providing exceptional customer service
• Creating positive experiences at every touchpoint

Gather customer feedback regularly to understand their needs and preferences. Use this feedback to improve your products and services. Personalise your interactions and show appreciation for your customers' loyalty.

Building a customer-centric culture will:

• Enhance relationships 
• Drive long-term growth

A CRM system can help you manage and nurture customer relationships through the following:

• Track customer interactions
• Analyse data
• Identify opportunities for engagement

This data-driven approach can significantly improve your BD efforts.

Crafting a Winning Business Development Strategy

A well-crafted business development strategy is essential for success. Start by defining your goals and objectives. What do you want to achieve through your business development efforts?

Whether it's:

• Entering a new market
• Increasing sales
• Expanding your product line

Having clear goals will guide your strategy.

Second, identify your target audience. Who are your ideal customers? What are their needs and pain points? Understanding your audience will help you tailor your messaging and offerings to resonate with them.

Develop a comprehensive plan that outlines your approach. Include specific tactics for:

• Market research
• Partnership building
• Customer engagement

Set measurable milestones to track your progress and adjust your strategy as needed. A well-defined plan will keep you focused and on track to achieve your goals. This is especially true for business marketing solutions.

Leveraging Technology for Business Development

Technology plays a crucial role in modern BD. Technology can streamline your efforts and boost your effectiveness. It can do this, from market research tools to CRM systems. Invest in tools that:

• Provide valuable insights
• Automate repetitive tasks

Data analytics is particularly valuable for BD.

Analyse customer data to identify trends and patterns. Use this information to make informed decisions and tailor your offerings.

Predictive analytics can also help you:

• Anticipate market changes
• Stay ahead of the competition

Social media is another powerful tool for business development. Some platforms offer opportunities to connect with potential partners and customers. Such as:

Use social media to:

• Share valuable content
• Engage with your audience
• Build your brand

Measuring Success in Business Development

Measuring the success of your business development efforts is essential. Set key performance indicators (KPIs) to track your progress. These may include metrics like:

• Revenue growth
• Number of partnerships
• Customer acquisition
• Customer satisfaction

Regularly review your KPIs and assess your performance against your goals. Identify areas where you're excelling and areas that need improvement. Use this information to:

• Refine your strategy
• Allocate resources effectively

Gather feedback from your team and stakeholders. Their insights can provide valuable perspectives and help you identify potential improvements. Celebrate your successes and learn from your challenges to continuously improve your BD efforts.

Overcoming Challenges in Business Development

BD is not without its challenges. Identifying market opportunities can be difficult in a competitive landscape. Building partnerships and nurturing relationships require time and effort.

Measuring success can be complex, with many variables at play. To overcome these challenges, stay resilient and adaptable. Continuously seek new opportunities and be open to change.

Invest in professional development to enhance your skills and knowledge. Surround yourself with a supportive team that shares your vision and commitment to growth. Seek guidance from mentors and industry experts.

Learning from their experiences can provide valuable insights and help you navigate challenges. With advice from business management services, you can grow your revenues .

Take Your Business Development to the Next Level

Mastering business development is essential for long-term success. By following the tips above, you can drive growth and achieve your goals. Craft a winning strategy and measure your success to improve your efforts continuously.

Stay resilient and adaptable in the face of challenges. Seek guidance from mentors and industry experts to enhance your knowledge and skills. 

Consult business development services now! Start implementing these strategies today!

If you want to read more articles, visit our blog.

People Also Like to Read...

Business Development Opportunities through COBOL Modernisation

How to Set and Achieve Your Business Development Goals with Coaching

© 2016 - 2024 Robin Waite. All rights reserved.

• Certifications
• Associate Business Strategy Professional
• Senior Business Strategy Professional
• Examination
• Partnership
• For Academic Affiliation
• For Training Companies
• For Corporates
• Help Center
• Associate Business Strategy Professional (ABSP™)
• Senior Business Strategy Professional (SBSP™)
• Certification Process
• TSI Certification Examination
• Get your Institution TSI Affiliated
• Become a Corporate Education Partner
• Become a Strategy Educator
• Frequently Asked Questions

What is Business Strategy? Definition, Importance, Levels, and Examples

Business strategy is the battle plan for a better future. - Patrick Dixon

Scaling up a business without a clear strategy is like captaining a ship without a rudder. The success of any business depends on the strategy that one follows. The business strategy establishes the needs of the business. Business strategy plays an important role for businesses of all sizes and entrepreneurs. It sets the direction of the organization and helps to create goals to aim towards.

What is Business Strategy?

Business strategy is defined as the course of action or set of decisions that support entrepreneurs in achieving certain business goals. It is a master plan that outlines the direction the organization intends to make, the actions it will undertake, and the resources it will give to attain certain competitive benefits and drive sustainable growth. It involves a combination of decisions, actions, and resource allocation that positions an organization in its industry or market.

Why is a Business Strategy important?

Business Strategy plays a crucial role in guiding a firm’s growth, competitiveness, and success. It offers a roadmap for decision-making, resource providing, and adaptation to transforming circumstances, ensuring that the firm stays agile, focused, and well-prepared to achieve its goals successfully. It is carefully planned and flexibly designed with the purpose of:

• Achieving effectiveness
• Perceiving and utilizing opportunities
• Mobilizing resources
• Securing an advantageous position
• Meeting the challenges and threats
• Directing efforts, behavior and
• Gaining command over the situation

What is the Difference between Business Strategy & Business Plan & Business Model

Business Strategy, Business Plan, and Business Model are three distinct elements that offer various purposes in the world of business. They are vital for the success and sustainability of a business, and they are interconnected, with slight changes which are often confused by several aspiring business strategists , especially during their interviews. Here's a breakdown of the important differences between these:

Levels of Business Strategy

Effective strategic management consists of coordination and alignment across various levels of strategy to achieve the organization's long-term goals and competitive advantage. Business strategy can be categorized into different levels depending on its scope, focus, and the organizational hierarchy at which it functions.

The three primary levels of business strategy are:

• Corporate level strategy Corporate level strategy is a long-range, action-oriented, integrated, and comprehensive plan, which is formulated by the top management of a company. It is very helpful to ascertain business lines, expansion, growth, takeovers and mergers, diversification , integration, and the latest fields for investment.
• Business level strategy The strategies that relate to a specific business are known as business-level strategies. It is developed by the general managers, who convert mission and vision into concrete, clear, and result-driven strategies. It acts like a blueprint for the total business.
• Functional level strategy Developed by the first-line managers or supervisors, the functional level strategy involves decision-making at the operational level concerning functional areas such as marketing, production, human resources, research and development, finance, and so on.

How to Implement a Successful Business Strategy?

A business strategist feels that it is tough to ideate any plan in a few hours. It requires a step-by-step procedure to be associated with completing a SWOT analysis . Here are the top steps that can be considered to build the best business strategies and execute them with precision:

• Understand the targets One of the clearest challenges for growth is poor targeting. Clear target markets offer an organization the ability to create an integrated sales and marketing approach, where marketing enables sales productivity. Sales and marketing business plan gets executed more efficiently if the targets are fixed in a proper way.
• Outline the tactics A successful business strategy is made up of several various tactics, including both online and offline options. The goals, target audience, and industry factor into this decision. For instance, if the target audience is young, focusing on social media is more beneficial as this is primarily where this group consumes content. If the industry is product-based (for instance, jewelry designing), then using a more visual platform would better showcase the products. To be most effective, one must choose which methods are right for the business. Once the selection of tactics is done, list them in the plan and determine how they’ll help to reach the goals.
• Think long term In the scope of constant change, planning the horizons is usually shorter than it can be. However, only thinking quarter to quarter is a trap that may rob organizations of their ability to see around the bend. Best-in-class organizations create processes designed for a series of financial and non-financial metrics to treat strategy as an annual cycle rather than a one-time, static event.
• Create a timeline Time is precious mainly when it is about the business. Based on the goals and objectives one can set for the business. Creating a timeline that will define what tasks can be completed and when they can be completed. It is highly advisable to allocate extra time for unexpected events that may delay some of the goals.
• Focus on growth A thriving organization is a growing organization. It is only through growth that the firms can afford to invest in aspects such as technology, the best staff, and the latest tools. The business strategy should identify the segments where an organization will grow and in what proportion.
• Have a budget plan Creating a budget for the business strategy can inform the efforts by determining what can be done and cannot be. Choosing the most cost-effective options for the business ensures the success of the overall business strategy. This doesn’t have to limit the options. Paid advertising on social media and search engines gives access to manage budgets well.
• Make fact-based decisions Several executives often complain about a lack of fruitful data, but they consistently find information that is useful in the formation of business strategy. The business has a set of values that guides it. Making fact-based decisions will outline the values and ensure that the people who interact with the business are aware of them. It will also ease the message that reflects on the brand honestly so it can actively demonstrate the values outlined in the mission statement through the interactions with clients.
• Invest in pre-work Always allocate time to do proper pre-work so that one can be up to date. It is better to conduct proper end-to-end research and prepare relevant information in advance of the business strategy meetings. The goals and needs will change over time. Ideally, it is important to revisit the business plan every annum to make adjustments as needed. Follow industry news and trends that can add to the existing strategy.
• Execute well and measure results Measuring the effectiveness of the business strategy will inform the current plan and future efforts. Always be sure to track and measure the business so these measurements are effective. Set up a corporate calendar to enhance the productive meetings, and also to form a performance management cycle. One should write the marketing plan with this growth in mind so they can measure it. The execution of strategic planning needs discipline, and it must be taken care of by the senior executives to promote processes that keep the team focused.

Examples of Business Strategy

Hubspot developed and executed a perfect business strategy where it created a market that didn’t even exist – inbound marketing. It created an online resource guide explaining the limitations of interruption marketing and informing about the advantages of inbound marketing. The organizations even offered free courses to help the target audience understand its offering better.

Apple Inc. differentiated its Smartphone operating system iOS by making it simple as compared to Android. This differentiated it and built its followership. The organization has been following a similar business strategy for its other products as well.

Wrapping up

Establishing the business strategy keeps the business goals organized and focused, saving valuable time and money. With the increase in the competition, the demand for business strategy is becoming apparent and there is a tremendous increase in the types of business strategies used by the businesses.

Recent Posts

How Data Analytics Can Revolutionize Your Business - A Strategist's Guide

Download this Strategist's Guide to empower yourself with resourceful insights:

• Roadblocks to Data Usage
• Advantages that Data Analytics offer for businesses
• Elements of a Data Analytics Strategy
• Top reasons why businesses must adopt a Data Analytics Strategy
• Case studies, Scenarios, and more

CredBadge™ is a proprietary, secure, digital badging platform that provides for seamless authentication and verification of credentials across digital media worldwide.

CredBadge™ powered credentials ensure that professionals can showcase and verify their qualifications and credentials across all digital platforms, and at any time, across the planet.

Verify A Credential

Please enter the License Number/Unique Credential Code of the certificant. Results will be displayed if the person holds an active credential from TSI.

Stay Informed!

Keep yourself informed on the latest updates and information about business strategy by subscribing to our newsletter.

Start Your Journey with The Strategy Institute by Creating Your myTSI Account Today.

• Manage your professional profile conveniently.
• Manage your credentials anytime.
• Share your experiences and ideas with The Strategy Institute.

Account Login

• Remember Password
• Forgot Password?

Forgot Password

The essential components of a successful L&D strategy

Over the past decade, the global workforce has been continually evolving because of a number of factors. An increasingly competitive business landscape, rising complexity, and the digital revolution are reshaping the mix of employees. Meanwhile, persistent uncertainty, a multigenerational workforce, and a shorter shelf life for knowledge have placed a premium on reskilling and upskilling. The shift to a digital, knowledge-based economy means that a vibrant workforce is more important than ever: research suggests that a very significant percentage of market capitalization in public companies is based on intangible assets—skilled employees, exceptional leaders, and knowledge. 1 Intangible Asset Market Value Study, Ocean Tomo.

Learning and development—From evolution to revolution

We began in 2014 by surveying 1,500 executives about capability building. In 2016, we added 120 L&D leaders at 91 organizations to our database, gathering information on their traditional training strategies and aspirations for future programs. We also interviewed 15 chief learning officers or L&D heads at major companies.

Historically, the L&D function has been relatively successful in helping employees build skills and perform well in their existing roles. The main focus of L&D has been on upskilling. However, the pace of change continues to accelerate; McKinsey research estimates that as many as 800 million jobs could be displaced by automation by 2030.

Employee roles are expected to continue evolving, and a large number of people will need to learn new skills to remain employable. Unsurprisingly, our research confirmed our initial hypothesis: corporate learning must undergo revolutionary changes over the next few years to keep pace with constant technological advances. In addition to updating training content, companies must increase their focus on blended-learning solutions, which combine digital learning, fieldwork, and highly immersive classroom sessions. With the growth of user-friendly digital-learning platforms, employees will take more ownership of their professional development, logging in to take courses when the need arises rather than waiting for a scheduled classroom session.

Such innovations will require companies to devote more resources to training: our survey revealed that 60 percent of respondents plan to increase L&D spending over the next few years, and 66 percent want to boost the number of employee-training hours. As they commit more time and money, companies must ensure that the transformation of the L&D function proceeds smoothly.

All of these trends have elevated the importance of the learning-and-development (L&D) function. We undertook several phases of research to understand trends and current priorities in L&D (see sidebar, “Learning and development—From evolution to revolution”). Our efforts highlighted how the L&D function is adapting to meet the changing needs of organizations, as well as the growing levels of investment in professional development.

To get the most out of investments in training programs and curriculum development, L&D leaders must embrace a broader role within the organization and formulate an ambitious vision for the function. An essential component of this effort is a comprehensive, coordinated strategy that engages the organization and encourages collaboration. The ACADEMIES© framework, which consists of nine dimensions of L&D, can help to strengthen the function and position it to serve the organization more effectively.

The strategic role of L&D

One of L&D’s primary responsibilities is to manage the development of people—and to do so in a way that supports other key business priorities. L&D’s strategic role spans five areas (Exhibit 1). 2 Nick van Dam, 25 Best Practices in Learning & Talent Development , second edition, Raleigh, NC: Lulu Publishing, 2008.

• Attract and retain talent. Traditionally, learning focused solely on improving productivity. Today, learning also contributes to employability. Over the past several decades, employment has shifted from staying with the same company for a lifetime to a model where workers are being retained only as long as they can add value to an enterprise. Workers are now in charge of their personal and professional growth and development—one reason that people list “opportunities for learning and development” among the top criteria for joining an organization. Conversely, a lack of L&D is one of the key reasons people cite for leaving a company.
• Develop people capabilities. Human capital requires ongoing investments in L&D to retain its value. When knowledge becomes outdated or forgotten—a more rapid occurrence today—the value of human capital declines and needs to be supplemented by new learning and relevant work experiences. 3 Gary S. Becker, “Investment in human capital: A theoretical analysis,” Journal of Political Economy , 1962, Volume 70, Number 5, Part 2, pp. 9–49, jstor.org. Companies that make investments in the next generation of leaders are seeing an impressive return. Research indicates that companies in the top quartile of leadership outperform other organizations by nearly two times on earnings before interest, taxes, depreciation, and amortization (EBITDA). Moreover, companies that invest in developing leaders during significant transformations are 2.4 times more likely to hit their performance targets . 4 “ Economic Conditions Snapshot, June 2009: McKinsey Global Survey results ,” June 2009.
• Create a values-based culture. As the workforce in many companies becomes increasingly virtual and globally dispersed, L&D can help to build a values-based culture and a sense of community. In particular, millennials are particularly interested in working for values-based, sustainable enterprises that contribute to the welfare of society.
• Build an employer brand. An organization’s brand is one of its most important assets and conveys a great deal about the company’s success in the market, financial strengths, position in the industry, and products and services. Investments in L&D can help to enhance company’s brand and boost its reputation as an “employer of choice.” As large segments of the workforce prepare to retire, employers must work harder to compete for a shrinking talent pool. To do so, they must communicate their brand strength explicitly through an employer value proposition.
• Motivate and engage employees. The most important way to engage employees is to provide them with opportunities to learn and develop new competencies. Research suggests that lifelong learning contributes to happiness. 5 John Coleman, “Lifelong learning is good for your health, your wallet, and your social life,” Harvard Business Review , February 7, 2017, hbr.org. When highly engaged employees are challenged and given the skills to grow and develop within their chosen career path, they are more likely to be energized by new opportunities at work and satisfied with their current organization.

The L&D function in transition

Over the years, we have identified and field-tested nine dimensions that contribute to a strong L&D function. We combined these dimensions to create the ACADEMIES framework, which covers all aspects of L&D functions, from setting aspirations to measuring impact (Exhibit 2). Although many companies regularly execute on several dimensions of this framework, our recent research found that only a few companies are fully mature in all dimensions.

1. Alignment with business strategy

One of an L&D executive’s primary tasks is to develop and shape a learning strategy based on the company’s business and talent strategies. The learning strategy seeks to support professional development and build capabilities across the company, on time, and in a cost-effective manner. In addition, the learning strategy can enhance the company culture and encourage employees to live the company’s values.

For many organizations, the L&D function supports the implementation of the business strategy. For example, if one of the business strategies is a digital transformation, L&D will focus on building the necessary people capabilities to make that possible.

Every business leader would agree that L&D must align with a company’s overall priorities. Yet research has found that many L&D functions fall short on this dimension. Only 40 percent of companies say that their learning strategy is aligned with business goals. 6 Human Capital Management Excellence Conference 2018, Brandon Hall Group. For 60 percent, then, learning has no explicit connection to the company’s strategic objectives. L&D functions may be out of sync with the business because of outdated approaches or because budgets have been based on priorities from previous years rather than today’s imperatives, such as a digital transformation.

Would you like to learn more about the McKinsey Academy ?

To be effective, L&D must take a hard look at employee capabilities and determine which are most essential to support the execution of the company’s business strategy. L&D leaders should reevaluate this alignment on a yearly basis to ensure they are creating a people-capability agenda that truly reflects business priorities and strategic objectives.

2. Co-ownership between business units and HR

With new tools and technologies constantly emerging, companies must become more agile, ready to adapt their business processes and practices. L&D functions must likewise be prepared to rapidly launch capability-building programs—for example, if new business needs suddenly arise or staff members require immediate training on new technologies such as cloud-based collaboration tools.

L&D functions can enhance their partnership with business leaders by establishing a governance structure in which leadership from both groups share responsibility for defining, prioritizing, designing, and securing funds for capability-building programs. Under this governance model, a company’s chief experience officer (CXO), senior executives, and business-unit heads will develop the people-capability agenda for segments of the enterprise and ensure that it aligns with the company’s overall strategic goals. Top business executives will also help firmly embed the learning function and all L&D initiatives in the organizational culture. The involvement of senior leadership enables full commitment to the L&D function’s longer-term vision.

3. Assessment of capability gaps and estimated value

After companies identify their business priorities, they must verify that their employees can deliver on them—a task that may be more difficult than it sounds. Some companies make no effort to assess employee capabilities, while others do so only at a high level. Conversations with L&D, HR, and senior executives suggest that many companies are ineffective or indifferent at assessing capability gaps, especially when it comes to senior leaders and midlevel managers.

The most effective companies take a deliberate, systematic approach to capability assessment. At the heart of this process is a comprehensive competency or capability model based on the organization’s strategic direction. For example, a key competency for a segment of an e-commerce company’s workforce could be “deep expertise in big data and predictive analytics.”

After identifying the most essential capabilities for various functions or job descriptions, companies should then assess how employees rate in each of these areas. L&D interventions should seek to close these capability gaps.

4. Design of learning journeys

Most corporate learning is delivered through a combination of digital-learning formats and in-person sessions. While our research indicates that immersive L&D experiences in the classroom still have immense value, leaders have told us that they are incredibly busy “from eight to late,” which does not give them a lot of time to sit in a classroom. Furthermore, many said that they prefer to develop and practice new skills and behaviors in a “safe environment,” where they don’t have to worry about public failures that might affect their career paths.

Traditional L&D programs consisted of several days of classroom learning with no follow-up sessions, even though people tend to forget what they have learned without regular reinforcement. As a result, many L&D functions are moving away from stand-alone programs by designing learning journeys—continuous learning opportunities that take place over a period of time and include L&D interventions such as fieldwork, pre- and post-classroom digital learning, social learning, on-the-job coaching and mentoring, and short workshops. The main objectives of a learning journey are to help people develop the required new competencies in the most effective and efficient way and to support the transfer of learning to the job.

5. Execution and scale-up

An established L&D agenda consists of a number of strategic initiatives that support capability building and are aligned with business goals, such as helping leaders develop high-performing teams or roll out safety training. The successful execution of L&D initiatives on time and on budget is critical to build and sustain support from business leaders.

L&D functions often face an overload of initiatives and insufficient funding. L&D leadership needs to maintain an ongoing discussion with business leaders about initiatives and priorities to ensure the requisite resources and support.

Many new L&D initiatives are initially targeted to a limited audience. A successful execution of a small pilot, such as an online orientation program for a specific audience, can lead to an even bigger impact once the program is rolled out to the entire enterprise. The program’s cost per person declines as companies benefit from economies of scale.

6. Measurement of impact on business performance

A learning strategy’s execution and impact should be measured using key performance indicators (KPIs). The first indicator looks at business excellence: how closely aligned all L&D initiatives and investments are with business priorities. The second KPI looks at learning excellence: whether learning interventions change people’s behavior and performance. Last, an operational-excellence KPI measures how well investments and resources in the corporate academy are used.

Accurate measurement is not simple, and many organizations still rely on traditional impact metrics such as learning-program satisfaction and completion scores. But high-performing organizations focus on outcomes-based metrics such as impact on individual performance, employee engagement, team effectiveness, and business-process improvement.

We have identified several lenses for articulating and measuring learning impact:

• Strategic alignment: How effectively does the learning strategy support the organization’s priorities?
• Capabilities: How well does the L&D function help colleagues build the mind-sets, skills, and expertise they need most? This impact can be measured by assessing people’s capability gaps against a comprehensive competency framework.
• Organizational health: To what extent does learning strengthen the overall health and DNA of the organization? Relevant dimensions of the McKinsey Organizational Health Index can provide a baseline.
• Individual peak performance: Beyond raw capabilities, how well does the L&D function help colleagues achieve maximum impact in their role while maintaining a healthy work-life balance?

Access to big data provides L&D functions with more opportunities to assess and predict the business impact of their interventions.

7. Integration of L&D interventions into HR processes

Just as L&D corporate-learning activities need to be aligned with the business, they should also be an integral part of the HR agenda. L&D has an important role to play in recruitment, onboarding, performance management, promotion, workforce, and succession planning. Our research shows that at best, many L&D functions have only loose connections to annual performance reviews and lack a structured approach and follow-up to performance-management practices.

L&D leadership must understand major HR management practices and processes and collaborate closely with HR leaders. The best L&D functions use consolidated development feedback from performance reviews as input for their capability-building agenda. A growing number of companies are replacing annual performance appraisals with frequent, in-the-moment feedback. 7 HCM outlook 2018 , Brandon Hall Group. This is another area in which the L&D function can help managers build skills to provide development feedback effectively.

Elevating Learning & Development: Insights and Practical Guidance from the Field

Another example is onboarding. Companies that have developed high-impact onboarding processes score better on employee engagement and satisfaction and lose fewer new hires. 8 HCM outlook 2018 , Brandon Hall Group. The L&D function can play a critical role in onboarding—for example, by helping people build the skills to be successful in their role, providing new hires with access to digital-learning technologies, and connecting them with other new hires and mentors.

8. Enabling of the 70:20:10 learning framework

Many L&D functions embrace a framework known as “70:20:10,” in which 70 percent of learning takes place on the job, 20 percent through interaction and collaboration, and 10 percent through formal-learning interventions such as classroom training and digital curricula. These percentages are general guidelines and vary by industry and organization. L&D functions have traditionally focused on the formal-learning component.

Today, L&D leaders must design and implement interventions that support informal learning, including coaching and mentoring, on-the-job instruction, apprenticeships, leadership shadowing, action-based learning, on-demand access to digital learning, and lunch-and-learn sessions. Social technologies play a growing role in connecting experts and creating and sharing knowledge.

9. Systems and learning technology applications

The most significant enablers for just-in-time learning are technology platforms and applications. Examples include next-generation learning-management systems, virtual classrooms, mobile-learning apps, embedded performance-support systems, polling software, learning-video platforms, learning-assessment and -measurement platforms, massive open online courses (MOOCs), and small private online courses (SPOCs), to name just a few.

The learning-technology industry has moved entirely to cloud-based platforms, which provide L&D functions with unlimited opportunities to plug and unplug systems and access the latest functionality without having to go through lengthy and expensive implementations of an on-premises system. L&D leaders must make sure that learning technologies fit into an overall system architecture that includes functionality to support the entire talent cycle, including recruitment, onboarding, performance management, L&D, real-time feedback tools, career management, succession planning, and rewards and recognition.

L&D leaders are increasingly aware of the challenges created by the fourth industrial revolution (technologies that are connecting the physical and digital worlds), but few have implemented large-scale transformation programs. Instead, most are slowly adapting their strategy and curricula as needed. However, with technology advancing at an ever-accelerating pace, L&D leaders can delay no longer: human capital is more important than ever and will be the primary factor in sustaining competitive advantage over the next few years.

The leaders of L&D functions need to revolutionize their approach by creating a learning strategy that aligns with business strategy and by identifying and enabling the capabilities needed to achieve success. This approach will result in robust curricula that employ every relevant and available learning method and technology. The most effective companies will invest in innovative L&D programs, remain flexible and agile, and build the human talent needed to master the digital age.

These changes entail some risk, and perhaps some trial and error, but the rewards are great.

A version of this chapter was published in TvOO Magazine in September 2016. It is also included in Elevating Learning & Development: Insights and Practical Guidance from the Field , August 2018.

Stay current on your favorite topics

Jacqueline Brassey is director of Enduring Priorities Learning in McKinsey’s Amsterdam office, where Nick van Dam is an alumnus and senior adviser to the firm as well as professor and chief of the IE University (Madrid) Center for Learning Innovation; Lisa Christensen is a senior learning expert in the San Francisco office.

Explore a career with us

Related articles.

Seven essential elements of a lifelong-learning mind-set

Putting lifelong learning on the CEO agenda

• Browse All Articles
• Newsletter Sign-Up

• 20 Aug 2024
• Cold Call Podcast

Angel City Football Club: A New Business Model for Women’s Sports

Angel City Football Club (ACFC) was founded in 2020 by venture capitalist Kara Nortman, entrepreneur Julie Uhrman, and actor and activist Natalie Portman. As outsiders to professional sports, the all-female founding team had rewritten the playbook for how to build a sports franchise by applying lessons from the tech and entertainment industries. Unlike typical sports franchises that built their teams and track records over many years before extending their brand beyond a local base, ACFC had inverted the model, generating both global and local interest in the club during its first three years. The club’s early success was reflected in its market valuation of $250 million as of its sale in July 2024 — the highest in the National Women’s Soccer League. Equally important, ACFC had started to bend the curve toward greater pay equity in women’s sports — the club’s ultimate goal. But the founders knew there was much more to do to capitalize on the club’s momentum. As they developed ACFC’s first three-year strategic plan in 2024, they weighed the most effective ways to build value for the franchise. Was it better to allocate the incremental budget to investments in digital brand building or to investments in the on-field product? Senior Lecturer Jeffrey Rayport is joined by case co-author Nicole Keller and club co-founder Kara Nortman to discuss the case, “Angel City Football Club: Scoring a New Model.”

Why Competing With Tech Giants Requires Finding Your Own Edge

In the new book Smart Rivals, Feng Zhu and Bonnie Yining Cao show business leaders how to create competitive advantages by uncovering their hidden strengths and leveraging their individual capabilities.

• 06 Aug 2024

How EdTech Firm Coursera Is Incorporating GenAI into Its Products and Services

In early 2023, Jeff Maggioncalda, CEO of Coursera, started developing the EdTech firm’s strategy for incorporating GenAI into their offerings. By early 2024, the firm had made significant progress in bringing four key capabilities to market, but GenAI was evolving quickly and Coursera needed to continuously improve its offerings. While the firm had been an early mover, competitors were adapting fast. Was Coursera taking full advantage of the opportunities presented by the technology? What more could it do to remain competitive?

• 26 Jul 2024
• Research & Ideas

Why Great Ideas Get Stuck in Universities

Academic institutions incubate novel ideas and are important innovation partners for companies, but getting products out of universities and onto the market can be challenging. A study by Maria Roche illustrates how researchers might be getting in their own way.

• 08 Jul 2024

The Critical Computer Science Principles Every Strategic Leader Needs to Know

Technology is such an integral part of so many industries now that business executives can't afford to leave all the digital know-how to their tech teams. Andy Wu explains the five essential principles of computer science that all leaders need to grasp to gain an edge.

• 04 Jun 2024

How One Insurtech Firm Formulated a Strategy for Climate Change

The Insurtech firm Hippo was facing two big challenges related to climate change: major loss ratios and rate hikes. The company used technologically empowered services to create its competitive edge, along with providing smart home packages, targeting risk-friendly customers, and using data-driven pricing. But now CEO and president Rick McCathron needed to determine how the firm’s underwriting model could account for the effects of high-intensity weather events. Harvard Business School professor Lauren Cohen discusses how Hippo could adjust its strategy to survive a new era of unprecedented weather catastrophes in his case, “Hippo: Weathering the Storm of the Home Insurance Crisis.”

• 03 May 2024

How Much Does Proximity Influence Startup Innovation? 20 Meters' Worth to Be Exact

When it comes to sharing ideas, how much does close proximity matter? A study by Maria Roche evaluates how knowledge spreads in a coworking space, providing insights that could help shape the debate over remote work.

• 22 Mar 2024

Open Source Software: The $9 Trillion Resource Companies Take for Granted

Many companies build their businesses on open source software, code that would cost firms $8.8 trillion to create from scratch if it weren't freely available. Research by Frank Nagle and colleagues puts a value on an economic necessity that will require investment to meet demand.

• 29 Feb 2024

Beyond Goals: David Beckham's Playbook for Mobilizing Star Talent

Reach soccer's pinnacle. Become a global brand. Buy a team. Sign Lionel Messi. David Beckham makes success look as easy as his epic free kicks. But leveraging world-class talent takes discipline and deft decision-making, as case studies by Anita Elberse reveal. What could other businesses learn from his ascent?

• 09 Jan 2024
• In Practice

Harnessing AI: What Businesses Need to Know in ChatGPT’s Second Year

Companies across industries rushed to adopt ChatGPT last year, seeing its potential to streamline tasks formerly handled by people and vendors at much higher cost. As generative AI enters its next phase in 2024, what can leaders expect? Harvard Business School faculty members highlight four trends to watch.

• 12 Dec 2023

Can Sustainability Drive Innovation at Ferrari?

When Ferrari, the Italian luxury sports car manufacturer, committed to achieving carbon neutrality and to electrifying a large part of its car fleet, investors and employees applauded the new strategy. But among the company’s suppliers, the reaction was mixed. Many were nervous about how this shift would affect their bottom lines. Professor Raffaella Sadun and Ferrari CEO Benedetto Vigna discuss how Ferrari collaborated with suppliers to work toward achieving the company’s goal. They also explore how sustainability can be a catalyst for innovation in the case, “Ferrari: Shifting to Carbon Neutrality.” This episode was recorded live December 4, 2023 in front of a remote studio audience in the Live Online Classroom at Harvard Business School.

• 24 Oct 2023

How the United States Air Force Accelerated AI Adoption

In August 2022, the Pentagon tasked U.S. Air Force Captain Victor Lopez with launching a new Air Force innovation unit that leveraged commercial developers and military talent to acquire advanced technologies. Having been granted flexibility in the setup of the office, Lopez pondered the complexities of his assignment and the decisions around organizational design he would have to make. It’s often believed that only small start-up organizations can innovate, but a lot of innovation happens in big organizations, including government. Harvard Business School assistant professor Maria Roche is joined by Major Lopez to discuss the challenges of digital transformation in a large bureaucratic organization and the specific choices the U.S. Air Force needed to make when launching its AI Accelerator in her case, "Accelerating AI Adoption in the United States Air Force."

• 26 Sep 2023

The PGA Tour and LIV Golf Merger: Competition vs. Cooperation

On June 9, 2022, the first LIV Golf event teed off outside of London. The new tour offered players larger prizes, more flexibility, and ambitions to attract new fans to the sport. Immediately following the official start of that tournament, the PGA Tour announced that all 17 PGA Tour players participating in the LIV Golf event were suspended and ineligible to compete in PGA Tour events. Tensions between the two golf entities continued to rise, as more players “defected” to LIV. Eventually LIV Golf filed an antitrust lawsuit accusing the PGA Tour of anticompetitive practices, and the Department of Justice launched an investigation. Then, in a dramatic turn of events, LIV Golf and the PGA Tour announced that they were merging. Harvard Business School assistant professor Alexander MacKay discusses the competitive, antitrust, and regulatory issues at stake and whether or not the PGA Tour took the right actions in response to LIV Golf’s entry in his case, “LIV Golf.”

Digital Strategy: A Handbook for Managing a Moving Target

Digital strategy demands significant organizational energy at many companies. By the time teams have adapted to newly implemented technology, another platform has emerged to replace it. A book coedited by Feng Zhu offers a guide for executives trying to manage the chaos.

• 19 Sep 2023

How Will the Tech Titans Behind ChatGPT, Bard, and LLaMA Make Money?

It seems like anything is possible with generative AI right now. But how will companies profit from those big ideas? Andy Wu breaks down the potentially painful tradeoffs that tech firms might face as artificial intelligence enters its next phase.

• 29 Aug 2023

As Social Networks Get More Competitive, Which Ones Will Survive?

In early 2023, TikTok reached close to 1 billion users globally, placing it fourth behind the leading social networks: Facebook, YouTube, and Instagram. Meanwhile, competition in the market for videos had intensified. Can all four networks continue to attract audiences and creators? Felix Oberholzer-Gee discusses competition and imitation among social networks in his case “Hey, Insta & YouTube, Are You Watching TikTok?”

• 01 Aug 2023

Can Business Transform Primary Health Care Across Africa?

mPharma, headquartered in Ghana, is trying to create the largest pan-African health care company. Their mission is to provide primary care and a reliable and fairly priced supply of drugs in the nine African countries where they operate. Co-founder and CEO Gregory Rockson needs to decide which component of strategy to prioritize in the next three years. His options include launching a telemedicine program, expanding his pharmacies across the continent, and creating a new payment program to cover the cost of common medications. Rockson cares deeply about health equity, but his venture capital-financed company also must be profitable. Which option should he focus on expanding? Harvard Business School Professor Regina Herzlinger and case protagonist Gregory Rockson discuss the important role business plays in improving health care in the case, “mPharma: Scaling Access to Affordable Primary Care in Africa.”

• 05 Jul 2023

What Kind of Leader Are You? How Three Action Orientations Can Help You Meet the Moment

Executives who confront new challenges with old formulas often fail. The best leaders tailor their approach, recalibrating their "action orientation" to address the problem at hand, says Ryan Raffaelli. He details three action orientations and how leaders can harness them.

• 07 Jun 2023

3 Ways to Gain a Competitive Advantage Now: Lessons from Amazon, Chipotle, and Facebook

Remember the Sony Librie? Some people considered it superior to Amazon's Kindle, but it didn't end up the market leader. Rebecca Karp breaks down three methods that companies use to create more value than their rivals—an edge that can make all the difference.

• 28 Feb 2023

Muhammad Ali: A Case Study in Purpose-Driven Decision Making

Muhammad Ali, born Cassius Marcellus Clay Jr., rose from a poor family in segregated Louisville, Kentucky to international fame, winning three heavyweight boxing titles and becoming a civil rights leader and role model for millions of people around the world. How did he do it? Early in his career, Ali’s creativity and hard work helped him overcome significant obstacles. Rather than letting his fear of flying keep him from competing in the 1960 Olympics, he traveled to Italy wearing a parachute -- and easily won the gold medal in boxing. When he returned to the U.S. as a gold medalist, Ali used his growing fame to bring attention to racism and humanitarian causes he supported, including his then-controversial decision to refuse to fight in the Vietnam War. Professor Robert Simons discusses how Ali made decisions throughout his life and career to leave a lasting impact on the world in his case, “Muhammad Ali: Changing the World.”

• Search Search Please fill out this field.
• Investing in R&D
• What R&D Offers
• The R&D Tax Credit

Buyouts and Mergers

• R&D Benefits

The Bottom Line

• Business Essentials

Why You Should Invest in Research and Development (R&D)

Research and development (R&D) is the part of a company's operations that seeks knowledge to develop, design, and enhance its products, services, technologies, or processes. Along with creating new products and adding features to old ones, investing in research and development connects various parts of a company's strategy and business plan.

According to the latest Business Enterprise Research and Development survey by the National Center for Science and Engineering and the U.S. Census Bureau, businesses spent $32.5 billion to support their R&D activities in 2020.

Here are some reasons your business should invest in research and development.

Key Takeaways

• Research and development (R&D) is an essential driver of economic growth as it spurs innovation, invention, and progress.
• R&D spending can lead to breakthroughs that can drive profits and well-being for consumers.
• Today, R&D is present in nearly every business sector as companies jockey for position in their respective markets.
• Smaller firms engaged in R&D can offset some of these costs and attract investors thanks to a federal tax break.

Investing in Research and Development (R&D)

The Internal Revenue Service's definition of research and development is investigative activities that a person or business chooses to do with the desired result of a discovery that will create an entirely new product, product line, or service.

However, the activities don't only need to be for disovering new products or services—this is only for tax purposes.

R&D isn’t just about creating new products; it can be used to strengthen an existing product or service with additional features.

Research refers to any new science or thinking that will result in a new product or new features for an existing product. Research can be broken down into either basic research or applied research. Basic research seeks to delve into scientific principles from an academic standpoint, while applied research aims to use that basic research in a real-world setting.

The development portion refers to the actual application of the new science or thinking so that a new or increasingly better product or service can begin to take shape.

Research and development is essentially the first step in developing a new product, but product development is not exclusively research and development. An offshoot of R&D, product development can refer to the entire product life cycle , from conception to sale to renovation to retirement.

R&D Offers Productivity, Product Differentiation

Firms gain a competitive advantage by performing in some way that their rivals cannot easily replicate. If R&D efforts lead to an improved type of business process—cutting marginal costs or increasing marginal productivity—it is easier to outpace competitors.

R&D often leads to a new type of product or service—for example, without research and development, cell phones or other mobile devices would never have been created. The internet, and even how people live today, would be completely different if businesses had not conducted R&D in the past.

Research results give businesses a means to find issues people have and ways to address them, and development allows companies to find unique and different ways to fix the problems.

This leads to many different product and service variations, which gives consumers choices and keeps the markets competitive. Some examples of companies that carry out R&D activities are auto manufacturers, software creators, cutting-edge tech companies, and pharmaceutical firms.

The R&D Tax Credit

In 1981, the IRS started offering tax breaks for companies to spend money and hire employees for research and development. Qualifying companies include startups and other small ventures with qualified research expenses. Such expenses can be used to offset tax liabilities , along with an impressive 20-year carry-forward provision for the credit.

Many entrepreneurs and small businesses have made a large sum of money in a short time by selling good ideas to established firms with many resources. Buyouts are particularly common with online companies, but they can be seen wherever there is a lot of incentive to innovate.

Research and development can help your ideas or business become more attractive to investors and other companies looking to expand.

Advertising and Marketing R&D Benefits

Advertising is full of claims about revolutionary new techniques or never-before-seen products and technologies. Consumers demand new and improved products, sometimes simply because they are new. R&D departments can act as advertising wings in the right market.

R&D strategies let companies create highly effective marketing strategies around releasing a new or existing product with new features. A company can create marketing campaigns to match innovative products and market participation.

What Are the Reasons for R&D?

Research and development keep your business competitive. Without R&D, you risk losing your competitive advantage and falling behind other companies researching and developing new products in your industry.

Why Is R&D Important for Startups?

R&D is essential because it helps you keep your business momentum going. New products and services help you attract more customers, make sales, and give you something to talk about with your investors.

What Factors are Essential in Successful R&D?

Successful research and development depend on many factors, but the most important is a strong interest from your customer base and investors. If you spend money and time researching and developing something no one wants, it's being wasted.

Increased market participation, cost management benefits, advancements in marketing abilities, and trend-matching are all reasons companies invest in R&D. R&D can help a company follow or stay ahead of market trends and keep the company relevant.

Although resources must be allocated to R&D, the innovations gained through this research can actually work to reduce costs through more efficient production processes or more efficient products. R&D efforts can also reduce corporate income tax, thanks to the deductions and credits they generate.

National Center for Science and Engineering. " Businesses Invested $32.5 Billion in Assets to Support Their R&D Activities in the United States in 2020 ."

Tax Foundation. " Reviewing the Federal Tax Treatment of Research & Development Expenses ."

Internal Revenue Service. " About Form 6765, Credit for Increasing Research Activities ."

Internal Revenue Service. " Instructions for Form 3800 (2022) ," Page 2.

• Terms of Service
• Editorial Policy
• Privacy Policy

The Vital Role of Market Research in Building a Winning Business Strategy

When it comes to crafting a business strategy that truly works, guesswork isn’t an option. To succeed, you need to know your audience inside out and have a firm grasp of the competitive landscape. This is where market research steps in. Think of it as your strategic compass—guiding your decisions and ensuring they’re grounded in reality.

Let’s break down why market research is indispensable and how you can integrate it into your strategy to drive your business forward.

What is Market Research?

Market research goes far beyond simply gathering data. It’s about transforming raw numbers and opinions into actionable insights. These insights then inform the critical decisions that shape your business’s direction and growth.

By systematically collecting and analyzing information about your target market, competitors, and industry trends, market research empowers you to make decisions that are not just informed—but strategic. Emergen Research comprehensive research approach ensures that you stay ahead in a competitive landscape, equipped with the knowledge to drive sustainable growth.

Why Market Research Matters

Identifying new opportunities.

Market research is your key to unlocking untapped potential. By diving into the needs and desires of your target audience, you can discover gaps in the market. This knowledge allows you to create products or services that meet those needs—giving you a competitive edge.

Mitigating Risks

Venturing into new markets or launching a new product is always a risk, but market research helps you minimize that risk. By understanding the current market trends and customer behaviors, you can avoid costly mistakes and make more confident decisions.

Staying Ahead of the Competition

In the fast-paced world of business, standing still is the same as falling behind. Regularly conducting market research keeps you informed about what your competitors are up to, enabling you to innovate and stay ahead of the curve.

The Two Pillars of Market Research: Quantitative and Qualitative

Market research generally falls into two categories: Quantitative and Qualitative. Each type offers unique insights and, when used together, provides a comprehensive view of your market.

Quantitative Research

Quantitative research is all about numbers—data you can measure and analyze statistically. It’s ideal for getting a clear picture of market size, customer demographics, and other measurable factors that influence your business.

Key Characteristics:

Employs structured tools like surveys and questionnaires

Produces numerical data that can be statistically analyzed

Useful for identifying trends and patterns

Surveys to gauge customer satisfaction

Polls to assess product popularity

Qualitative Research

If quantitative research is the "what," qualitative research is the "why." It seeks to understand the motivations and emotions behind consumer behavior. Through open-ended questions and discussions, qualitative research provides deeper insights that numbers alone can’t offer.

Utilizes unstructured or semi-structured techniques such as interviews and focus groups

Delivers insights into customer attitudes, beliefs, and motivations

Typically involves smaller, more targeted sample sizes

Focus groups discussing how a brand is perceived

In-depth interviews exploring why customers prefer one product over another

The Role of Market Research in Business Strategy Development

Market research plays a pivotal role in the formulation of business strategies. Here's how it contributes:

Identifying Demand and Market Viability

Before launching a product or service, it's crucial to assess its viability. Market research helps determine whether there is sufficient demand for your offering.

Steps to Determine Viability:

Identify Market Needs: Understand what the market currently lacks.

Assess Competition: Evaluate how your competitors are fulfilling these needs.

Test Market Demand: Conduct surveys to gauge potential customer interest, especially in niche areas like loans online , where understanding market demand is crucial before launching a new product or service.

Example: A startup looking to introduce eco-friendly packaging must first understand if the target market values sustainability enough to pay a premium price for such products.

Reducing Risks and Enhancing Profitability

Knowledge gained from market research can significantly cut down risks by predictive analysis. Understanding past and future trends helps businesses align their strategies to meet market needs.

Key Points:

Risk Mitigation: Evaluate market conditions and customer behavior to avoid potential pitfalls.

Increased Profitability: Focus resources on strategies with the highest potential for return on investment.

Example: A company considering an expansive marketing campaign can first test various advertising channels and messages to see which resonate most with their target audience.

Understanding and Retaining Customers

Customers' needs and preferences change over time. Constantly monitoring these changes through market research ensures that businesses stay relevant and improve customer satisfaction.

Customer Insights: Understand behavior and satisfaction levels.

Retention Strategies: Develop strategies to retain customers by addressing their evolving needs.

Example: An e-commerce platform might use feedback surveys and purchase data analysis to identify pain points in the user experience and improve it accordingly.

How to Plan Effective Market Research

Planning is the backbone of effective market research. Here’s a structured approach to get the best results:

Set Clear Objectives

Understand what you want to achieve with your research. Is it to understand market trends, customer behavior, or competitor analysis?

Components of a Good Plan:

Define Goals: What do you aim to find out?

Select Techniques: Choose between qualitative and quantitative methods based on your goals.

Design Survey: Formulate questions that will provide meaningful data.

Choose the Right Tools

Invest in robust market research tools. These types of platforms offer comprehensive survey creation, distribution, and analysis features that streamline the research process.

Key Tool Features:

Survey Builder: Customize and create surveys easily.

Data Collection: Gather data through various channels like email, web pop-ups, and mobile devices.

Real-time Reporting: Analyze data as it comes in for timely insights.

Integration: Connect with CRM and other marketing tools for comprehensive insights.

Example: When gathering data for a new product launch, use a combination of online surveys and focus groups to get a well-rounded understanding of market demand.

Analyze and Implement Findings

Effective analysis transforms raw data into actionable insights. Use statistical tools and qualitative analysis techniques to understand your data clearly.

Data Analysis: Employ cross-tabulation, descriptive and inferential statistics.

Derive Insights: Identify key trends and patterns.

Action Plan: Develop strategies based on insights.

Example: A retail chain could use sales trend analysis to determine which products to stock more during festive seasons.

In today's fast-paced business environment, market research is not optional; it's essential. It’s the linchpin that ties together market viability, competitive analysis, and customer understanding into a coherent business strategy. By implementing well-planned and executed market research, businesses can set realistic goals, minimize risks, and maximize profitability.

Please support us by following us on LinkedIn -   https://www.linkedin.com/company/emergen-research

Read Comprehensive Report

Latest blogs.

Looking for Customization?

Have a Question?

Any Confusion?

Have a glance of the Report

How can we help you?

Please contact for a detailed synopsis of the report

Research Report

• Chemical and Advance Materials 491
• Healthcare and Pharmaceuticals 994
• Power and Energy 47
• Foods & Beverage 91
• Automotive 142
• Information and Communication Technology 441
• Manufacturing and Construction 39
• Semiconductors & Electronics 211
• Consumer Goods 60
• Aerospace and Defense 155
• Industrial Equipment and Machinery 70
• Agriculture 43
• Packaging 23
• Transportation 15
• Environment 24
• Banking and Finance 35
• Logistics and Supply Chain 12

Service Guarantee

Order And Delivery

This report has a service guarantee. We stand by our report qualityDelivery within 48 hours of receiving the payment.

Privacy Policy

Our website adheres to the guidelines given under the General Data Protection Regulation (GDPR). This privacy policy aims to assure the safety of data for users visiting our website.

Transactions on this website are protected by up to 256-bit Secure Sockets Layer encryption.

Report Customization

We provide report customization options, wherein the buyer can structure the report according to their requirements.

24/7 Research Support

All queries are resolved from an industry expert.

Free Sample PDF Copy

Our Report will provide insights on Market size, Company Details and Total Addressable Market(TAM)

New Markets | New Geographies | Competition

Business Strategy and Development

Subject Area and Category

• Strategy and Management
• Economics, Econometrics and Finance (miscellaneous)
• Development

John Wiley & Sons Inc.

Publication type

Information.

How to publish in this journal

[email protected]

The set of journals have been ranked according to their SJR and divided into four equal groups, four quartiles. Q1 (green) comprises the quarter of the journals with the highest values, Q2 (yellow) the second highest values, Q3 (orange) the third highest values and Q4 (red) the lowest values.

The SJR is a size-independent prestige indicator that ranks journals by their 'average prestige per article'. It is based on the idea that 'all citations are not created equal'. SJR is a measure of scientific influence of journals that accounts for both the number of citations received by a journal and the importance or prestige of the journals where such citations come from It measures the scientific influence of the average article in a journal, it expresses how central to the global scientific discussion an average article of the journal is.

Evolution of the number of published documents. All types of documents are considered, including citable and non citable documents.

This indicator counts the number of citations received by documents from a journal and divides them by the total number of documents published in that journal. The chart shows the evolution of the average number of times documents published in a journal in the past two, three and four years have been cited in the current year. The two years line is equivalent to journal impact factor ™ (Thomson Reuters) metric.

Evolution of the total number of citations and journal's self-citations received by a journal's published documents during the three previous years. Journal Self-citation is defined as the number of citation from a journal citing article to articles published by the same journal.

Evolution of the number of total citation per document and external citation per document (i.e. journal self-citations removed) received by a journal's published documents during the three previous years. External citations are calculated by subtracting the number of self-citations from the total number of citations received by the journal’s documents.

International Collaboration accounts for the articles that have been produced by researchers from several countries. The chart shows the ratio of a journal's documents signed by researchers from more than one country; that is including more than one country address.

Not every article in a journal is considered primary research and therefore "citable", this chart shows the ratio of a journal's articles including substantial research (research articles, conference papers and reviews) in three year windows vs. those documents other than research articles, reviews and conference papers.

Ratio of a journal's items, grouped in three years windows, that have been cited at least once vs. those not cited during the following year.

Evolution of the percentage of female authors.

Evolution of the number of documents cited by public policy documents according to Overton database.

Evoution of the number of documents related to Sustainable Development Goals defined by United Nations. Available from 2018 onwards.

Leave a comment

Name * Required

Email (will not be published) * Required

* Required Cancel

The users of Scimago Journal & Country Rank have the possibility to dialogue through comments linked to a specific journal. The purpose is to have a forum in which general doubts about the processes of publication in the journal, experiences and other issues derived from the publication of papers are resolved. For topics on particular articles, maintain the dialogue through the usual channels with your editor.

Follow us on @ScimagoJR Scimago Lab , Copyright 2007-2024. Data Source: Scopus®

Cookie settings

Cookie Policy

Legal Notice

Privacy Policy

4 effective strategies to integrate consumer insights into business decision-making

Many companies claim to be customer-centric but often fail to deliver the experiences customers truly want, leading to an empathy gap. To bridge this gap, companies must integrate consumer insights into their business strategies. This article explores four actionable strategies to help businesses better understand their customers and enhance decision-making processes to deliver a seamless, personalized experience.

Closing the gap between CX and business perception by integrating consumer insights

Editor’s note: Jim Longo is the co-founder and chief strategy officer at Discuss.

We’ve all experienced it. You visit a website excited to buy a product you saw advertised, only to find yourself lost in navigating an overly complex website, unresponsive customer service and a frustratingly complicated checkout process. 

Now reimagine the scenario, except this time:

• The website loads instantly.
• A chatbot assists you in finding exactly what you're looking for.
• You use a one-click checkout feature for a seamless purchase.
• You receive a personalized thank-you e-mail with a discount code for your next purchase.

This is a classic example of the empathy gap – the disconnect between what companies think they deliver and what customers experience.

Bain & Company found that across nearly 400 organizations, 80% of companies believed they delivered a superior customer experience while only 8% of their customers agreed.

Why is there such a disconnect?

The Boston Consulting Group's article, " The Introverted Corporation ," exposes the reality that many companies say they are consumer-centric but are failing to put it into action, citing a recent study that found that a staggering 80% of companies aren't using customer insights strategically. Many businesses are launching products nobody wants, crafting marketing campaigns that flop and ignoring their customers.

The solution? It’s time to embrace consumer centricity and embed consumer insights into your strategic business decisions.

Barriers to using consumer insights effectively 

If consumer insights are so valuable, why aren’t more companies using them effectively? Several barriers contribute to this issue:

Outdated consumer insights systems and processes.  

Using outdated systems and processes can be cumbersome, complex and costly, often discouraging businesses from listening to their customers more. Simplify your approach by centralizing everything into one global "human centricity" hub and leverage the digital age's powerful tools – such as live webcam interviews and asynchronous surveys – to reach a broader audience and foster deeper, more meaningful connections worldwide.

Thinking consumer data alone is enough.  

Collecting data is only half the battle; without the ability to sift through and analyze it effectively, it’s essentially wasted. According to the Boston Consulting Group, increasing your spending on consumer insights doesn’t guarantee that you will use those insights strategically or adopt a consumer-centric approach. What truly matters is having the mechanisms and capabilities to interpret the data and translate consumer insights into actionable strategies.

Consumer insights and organizational silos.  

Operating in silos often leads to strategies that are fragmented because no one has a complete picture of your customers’ needs and preferences. Consumer insights should be the heartbeat of all business decisions across all business groups. When insights are shared and leveraged across all teams, every decision, from product development to marketing, is informed by a complete and accurate understanding of your customers.

“Companies need to increase their surface area by exposing internal functions to external realities.” – Boston Consulting Group, The Introverted Corporation

4 ways to embed consumer insights into business strategies

Cultivate a consumer-centric culture.  .

Foster a consumer-first mind-set throughout the organization by first defining what “customer-centric” means for your business and emphasizing the importance of the voice of the consumer. Share stories of how customer insights have driven positive outcomes. Ensure that every team member listens to customers and is aligned on that goal. Make being customer-centric a core value. For more on creating a customer-centric culture, check out this HubSpot blog.

Measure impact by setting consumer-centric goals . 

Use customer insights to set measurable, impactful goals. Not “we want happier customers” but “increase customer satisfaction by 15% this quarter” or “slash churn rates by 15%.” Clear, bold targets keep everyone focused and accountable. This blog by Zendesk  shares ways to measure the success of customer centricity and recommends carefully monitoring your customer satisfaction score, churn rate and customer lifetime value.

Leverage tools to democratize access to consumer insights.

• Unified platform : Simplify your research process with an all-in-one data hub or platform that enables anyone, not just experienced researchers, to quickly and easily connect with customers through live interviews, asynchronous studies and more. 
• Generative AI for deeper insights, faster decisions:  Manually analyzing insights, especially qualitative insights, can be tedious as you comb through piles of interview transcripts. Streamline your workflow by utilizing AI-powered tools to analyze customer feedback and identify key themes, emerging trends and pain points nearly instantaneously.
• Centralized global research hub: Implement a global research hub to centralize all customer feedback. This ensures that everyone across the organization, not just sales and marketing, can easily access real-time insights and integrate them into their decision-making processes.
• Data visualization tools: Use data visualization tools like heat maps, sentiment analysis charts or affinity diagrams to make insights more accessible and engaging, helping stakeholders better connect with the consumer data on an emotional level and make decisions based on your consumers’ genuine needs and behaviors.

Adopt an agile approach to consumer insights.

Remember Blockbuster? The world changes, and so do customer needs. Establish a continuous feedback loop that leverages the voice of the consumer to direct and guide your strategies.

By regularly collecting and analyzing consumer data, whether through quantitative or qualitative studies, you can use these real-time insights to keep a pulse on emerging trends and issues, allowing you to adjust your strategies and avoid being out of touch with your consumers. It’s survival of the fittest, and in the business world, that means being agile and responsive.

Consumer-centric companies that are leading the way

While giants like Amazon, Netflix and Meta are known for their customer focus, there are also smaller companies making significant strides in consumer centricity. 

Trader Joe’s . Known for its unique products, personalized service and quality service, Trader Joe’s excels in keeping customers at the heart of the business. The grocery chain is a leader in sustainability, focusing on reducing food waste and enhancing cleanliness and safety based on customer feedback. The brand is well loved by customers and employees.

Discount Tire.  Renowned for its collaborative culture and commitment to customer service and integrity, Discount Tire stands out with its Treadwell program. This initiative allows customers to find the right tires online before visiting the store, blending the convenience of online shopping with personalized in-store service and enhancing the overall customer experience.

Samsung. In 2022, Samsung introduced a revamped support site and chat functionalities, resulting in a 19% boost in customer engagement. The company leverages AI to analyze feedback and calls, identify trends and address potential issues proactively, achieving top customer satisfaction ratings among cell phone manufacturers.

Allstate. Leading the property insurance sector in customer satisfaction, Allstate swiftly implemented touchless claims using satellite imagery and mobile claims centers during the pandemic. These virtual tools enabled quick service without the need for in-person interactions.

Consumer insights fuel successful businesses

Human-centricity is the new competitive edge.   With only one in five companies effectively utilizing their consumer insights strategically, there’s a huge opportunity for those willing to prioritize it. By cultivating a consumer-centric culture, setting focused goals, leveraging tools to democratize access to consumer insights and adopting an agile approach, you can make consumer insights fuel for your business’ success.

Start today by evaluating how your company currently uses consumer insights and identifying areas for improvement. 

In Case You Missed It...July/August 2024 Related Categories: Consumers, Consumer Research, CX/UX-Customer/User Experience Consumers, Consumer Research, CX/UX-Customer/User Experience, Psychological/Emotion Research, Research Industry, Shopper Insights, Data Security

10 steps to enhance your customer experience strategy Related Categories: Consumers, Consumer Research, CX/UX-Customer/User Experience Consumers, Consumer Research, CX/UX-Customer/User Experience, Artificial Intelligence / AI, Customer Satisfaction Studies, Data Analysis, Employee Opinion Studies, Employees, Innovation, Social Media Research

Tips for identifying market saturation and staying ahead of the curve Related Categories: Consumers, Consumer Research, CX/UX-Customer/User Experience Consumers, Consumer Research, CX/UX-Customer/User Experience, Brand Positioning Studies, Brand/Image Development, Brand/Image Tracking, Product Positioning Studies, Social Media Research

Strategies and tips to improve B2B customer retention Related Categories: Consumers, Consumer Research, CX/UX-Customer/User Experience Consumers, Consumer Research, CX/UX-Customer/User Experience, Bus.-To-Bus. Research, Business-To-Business, Research Industry, Competitor Customer Research, Customer Loyalty, Customer Recovery Studies, Customer Satisfaction Studies

Collaboration and Inter-Organizational Relationships: Motivations and Supervision in Sustainable Organization. An Empirical Analysis

• First Online: 03 September 2024

Cite this chapter

• Agnieszka Rzepka   ORCID: orcid.org/0000-0003-4495-6066 9 ,
• Paweł Bańkowski   ORCID: orcid.org/0000-0003-4907-8039 9 &
• Yuliia Boiko   ORCID: orcid.org/0009-0006-9585-6988 9  

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 537))

In today's dynamic business landscape, organizations find it challenging to operate in isolation from their external environment. This has become a determining factor in the growing significance of inter-organizational relationships and collaboration. This article aims to explore the motivations and areas of supervision within inter-organizational relations and collaboration in organizations. The analysis draws upon the results of original pilot research conducted as part of an inter-university project featuring managers who are MBA postgraduate students at the Lublin University of Technology. By leveraging these research findings, we aim to shed light on the factors that drive organizations, from a managerial perspective, to engage in relationships and the specific areas of collaboration that are most frequently subject to supervision. Organizations collaborate in various forms, seeking financial, operational, and strategic benefits. The research reveals that a primary motive for inter-organizational relationships is the pursuit of specific goals in the shortest time possible and with minimal risk. Consequently, the most frequently monitored area of collaboration involves periodic assessments of results and the implementation of various motivational strategies for both internal employees and external partners. The study highlights a cognitive gap in discerning the determinants that influence managers when selecting business partners, especially in the face of rapidly changing market conditions. A cognitive gap for future research involves comparing survey results between public and private organizations, considering their distinct operational methods, organizational structures, and the scope of inter-organizational relations in sustainable organization.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime
• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Durable hardcover edition
• Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Oliver, A.L., Ebers, M.: Networking network studies: an analysis of conceptual configurations in the study of inter-organizational relationships. Organ. Stud. 4 (19), 549–583 (1998)

Article   Google Scholar  

Czakon, W.: Dynamika więzi międzyorganizacyjnych przedsiębiorstwa. Wydawnictwo Akademii Ekonomicznej, Katowice (2007)

Google Scholar  

Latusek-Jurczak, D.: Zarządzanie międzyorganizacyjne. Wolters Kluwer, Warszawa (2011)

Williamson, E.O.: The theory of the firm as governance structure: from choice to contract. J. Econ. Perspect. 3 (16), 171–195 (2002)

Lewicka, D., Zakrzewska-Bielawska, A.: Trust and distrust in interorganisational relations–Scale development. PLoS ONE 12 (17) (2022)

Sieciński, K.: Sieć międzyorganizacyjna wobec czynników ryzyka: studium przypadku platformy Ariba Network. Zesz. Nauk. Politech. Częstochowskiej 1 (50), 98–111 (2023)

Wściubiak, Ł: Motywy współpracy międzyorganizacyjnej w działalności innowacyjnej–perspektywa przedsiębiorstw produkcyjnych w Polsce. Przegl. Organizacji 8 (955), 12–18 (2019)

Lichtarski, J.M.: Rozwój relacji współpracy pomiędzy organizacjami projektowymi–wyniki badań empirycznych. Przegl. Organizacji 12 (983), 13–23 (2021)

Panke, D., Stapel, S.: Cooperation between international organizations: demand, supply, and restraint. Rev. Int. Organ. 1–37 (2023)

Krechowicz, M.: Towards sustainable project management: evaluation of relationship-specific risks and risk determinants threatening to achieve the intended benefit of interorganizational cooperation in engineering projects. Sustainability 5 (14), 1–24 (2022)

Wäsche, H., Wolbring, L., Woll, A.: Physical activity promotion in an urban district: analyzing the mechanisms of interorganizational cooperation. PLoS ONE 11 (16) (2021)

Gołąb-Andrzejak, E., Horzela, A., Salecka, E., Tomaszuk, A.: Relacje międzyorganizacyjne w dobie Industry 4.0. 1st edn. Wydawnictwo Politechniki Gdańskiej, Gdańsk (2020)

Staszek Vel Staszewski, R.: Different approaches to studying inter-organisational trust relations in Polish and english literature. E-Mentor 3 (95), 61–71 (2022)

Wasiluk, A., Tomaszuk, A.: Organizacja w sieci relacji. Oficyna, Białystok (2020)

Bańkowski, P., Rzepka, A.: Relacje międzyorganizacyjne i ich wpływ na innowacyjność przedsiębiorstw. Wydawnictwo Politechniki Lubelskiej, Lublin (2024) (in print)

Vosman, L., Coenen, T.B.J., Volker, L., Visscher, K.: Collaboration and innovation beyond project boundaries: exploring the potential of an ecosystem perspective in the infrastructure sector. Constr. Manag. Econ. 41 (6), 457–474 (2023)

Kozłowski, R., Matejun, M.: Współpraca międzyorganizacyjna w zarządzaniu projektami małych i średnich przedsiębiorstw. Przegl. Organizacji 6 , 35–38 (2012)

Szydełko, M.: The essence and attributes of inter-organizational relations. HSS 4 (25), 351–362 (2018)

Previtali, P., Salvati, E.: Area social plans and local governance of interorganizational collaborations. Sustainability 2 (13), 1–16 (2021)

Anzilago, M., Beuren, I.: Relational norms and satisfaction with interorganizational cooperation. RAUSP Manag. J. 3 (57), 298–315 (2022)

Oudeniotis, N., Tsobanoglou, G.: Interorganizational cooperation and social capital formation among social enterprises and social economy organizations: a case study from the region of Attica. Greece. Soc. Sci. Basel 3 (11), 1–15 (2022)

Zhang, M., Hartley, J., AL-Husan, F., ALHussan, F.: Informal interorganizational business relationships and customer loyalty: comparing Guanxi, Yongo, and Wasta. Int. Bus. Rev. 3 (30), 1–52 (2021)

Bańkowski, P.: The team full of heroes—the HERO principal in organizations. Springer (2024) (in print)

Zakrzewska-Bielawska, A.: Recognition of relational strategy content: insight from the managers’ view. Eurasian Bus. Rev. 2 (9), 193–211 (2019)

Grześ, B.: Kluczowe kompetencje liderów w organizacjach XXI wieku. Zarządzanie i Jakość 4 (4), 1–18 (2022)

van Marrewijk, A., van den Ende, L.: Shaping interorganizational strategic projects through power relations and strategic practices. IJPM 4 (40), 426–438 (2022)

Danielak, W.J., Sobotkiewicz, D.: Kształtowanie relacji biznesowych w łańcuchu dostaw na przykładzie małego przedsiębiorstwa produkcyjnego. Zesz. Nauk. Politech. Poznańskiej 82 , 53–68 (2020)

Gorbatyuk, A., Van Overwalle, G., van Zimmeren, E.: Intellectual property ownership in coupled open innovation processes. IIC 3 (47), 262–302 (2016)

Yu, G., Lee, J.: When should a firm collaborate with research organizations for innovation performance? the moderating role of innovation orientation, size, and age. J. Technol. Transf. 6 (42), 1451–1465 (2017)

Lewandowska, M.: Bariery innowacji a kooperacja przedsiębiorstw: efekt supresji. Przegl. Organizacji 4 (879), 20–26 (2013)

Koźmiński, A., Latusek-Jurczak, D.: Relacje międzyorganizacyjne w naukach o zarządzaniu. Wolters Kluwer, Warszawa (2014)

Knutsen, W.: External perception matters: the phenomenon of identity coupling in interorganizational relations. Voluntas 4 (28), 1762–1784 (2017)

Klimas, P.: Rationale and barriers to inter-organizational relationships creation. Probl. Zarządzania 1 (13), 29–46 (2015)

Sachpazidu, K., Klimas, P., Stańczyk, S.: Relationship quality as inter-organizational relationships feature. Organ. Manag. 1 (190), 115–129 (2022)

Waerness, K., Solstad, E., Bertheussen, B.A.: Trust-based management control in inter-organizational relationships. J. Manag. Control. 3 (34), 317–346 (2023)

Anderson, S., Dekker, H.: From make-or-buy to coordinating collaboration: management control in strategic alliances. In: Otley, D., Soin, K. (eds.) Management Control and Uncertainty, pp. 47–68. Palgrave Macmillan, London (2014)

Rzepka, A.: Innovation, inter-organizational relation, and co-operation between enterprises in Podkarpacie region in Poland. Procedia Manuf. 30 , 642–649 (2019)

Rzepka, A.: Innovation in the Digital Economy New Approaches to Management for Industry 5.0. Routledge, London and New York (2023)

Desai, H.: Partner selection as a control mechanism in inter-organizational relationships: a meta-model approach. J. Account. Organ. Chang. 2 (19), 351–375 (2023)

Ul Zia, N., Burita, L., Yang, Y.: Inter-organizational social capital of firms in developing economies and industry 4.0 readiness: the role of innovative capability and absorptive capacity. Rev. Manag. Sci. 2 (17), 661–682 (2023)

Costa, J., Castro, R.: SMEs must go online-E-Commerce as an escape hatch for resilience and survivability. JTAER 7 (16), 3043–3062 (2021)

Csedő, Z.: Sustainability change management in inter-organizational innovation networks. Soc. Econ. 4 (45), 355–371 (2023)

Ghobakhloo, M., Fathi, M.: Corporate survival in Industry 4.0 era: the enabling role of lean-digitized manufacturing. J. Manuf. Technol. Manag. 1 (31), 1–30 (2020)

Karaś, A.: Alianse wiedzy i ich wpływ na działalność innowacyjną przedsiębiorstwa. Zesz. Nauk. MWSE w Tarnowie 3 (51), 75–85 (2021)

Download references

Acknowledgements

This paper is supported by the NAWA STER Program entitled “Internationalization of the Doctoral School of Lublin University of Technology–IDeaS of LUT." (Yuliia Boiko).

Author information

Authors and affiliations.

Lublin University of Technology, 20-618, Lublin, Poland

Agnieszka Rzepka, Paweł Bańkowski & Yuliia Boiko

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Paweł Bańkowski .

Editor information

Editors and affiliations.

College of Business of Finance, Ahlia University, Manama, Bahrain

Allam Hamdan

Department of Business Studies, Box Hill College Kuwait, Kuwait, Kuwait

Arezou Harraf

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Rzepka, A., Bańkowski, P., Boiko, Y. (2024). Collaboration and Inter-Organizational Relationships: Motivations and Supervision in Sustainable Organization. An Empirical Analysis. In: Hamdan, A., Harraf, A. (eds) Business Development via AI and Digitalization. Studies in Systems, Decision and Control, vol 537. Springer, Cham. https://doi.org/10.1007/978-3-031-62106-2_53

Download citation

DOI : https://doi.org/10.1007/978-3-031-62106-2_53

Published : 03 September 2024

Publisher Name : Springer, Cham

Print ISBN : 978-3-031-62105-5

Online ISBN : 978-3-031-62106-2

eBook Packages : Intelligent Technologies and Robotics Intelligent Technologies and Robotics (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• Wind Energy Technologies Office
• Wind Energy Career Map
• WETO Budget
• WETO Organization & Contacts
• Atmosphere to Electrons
• Distributed Wind
• Environmental Impacts & Siting
• Next-Generation Wind Technology
• Demonstration
• Floating Offshore Wind Shot
• Market Acceleration
• R&D Consortium
• Renewable Systems Integration
• Resource Assessment & Characterization
• Testing & Certification
• Drivetrains
• Infrastructure & Logistics
• Wind Turbine Radar Interference
• Wind Turbine Sustainability
• Workforce Development & Education
• History of Wind Energy
• How Distributed Wind Works
• How Wind Turbines Work
• WINDExchange
• Small Wind Systems FAQs
• WETO Peer Reviews
• Wind Energy FAQs
• Wind Energy Market Reports
• Wind Energy Projects Map
• Related Opportunities
• Wind Energy Technologies Office Updates
• Subscribe to our Newsletters
• Wind R&D Newsletter

The U.S. Department of Energy (DOE) announced awards totaling $142 million for small businesses in 34 states. Of the 123 projects to be funded address multiple mission-critical areas important for the nation, the Wind Energy Technologies Office selected 6 small businesses working to accelerate wind energy research and development. 

Funded through the DOE’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program, WETO’s selections are for Phase II research and development.  Small businesses that demonstrated technical feasibility for innovations during their Phase I grants competed for funding for prototype or processes development during Phase II.  In addition, prior Phase II awardees competed for second or third Phase II awards to continue prototype and process development.  The median Phase II award is $1,100,000 for a period of two years.   

Projects selected for award include:  

Faraday Technology, Inc., Englewood, OH : Electrochemical Recycling of Carbon Fiber Composite Wind Turbine Components. Economical and environmentally sustainable recycling methods are needed to handle the growing volume of wind turbine blade waste. This program will develop a recycling technology that recovers high-quality carbon fiber from blade waste and re-uses the carbon fiber to produce low-cost, high-performance composites for industries such as automotive and aerospace. 

Gulf Wind Technology, Avondale, LA:   Passive Loadshedding Trailing Edge .  Larger wind turbine blades are subject to increasingly dynamic operating conditions, including from hurricanes. This research will investigate on-blade load management techniques to reduce turbine costs.  

Kitware Inc., Clifton Park, NY: Bat Detection and Species Determination Around Wind Turbines Using Artificial Intelligence (AI) . Innovative, cost-effective technologies that refine our understanding of risks and minimize wildlife impacts at land-based and offshore wind farms are critical. This AI-powered, scalable web software visualization and annotation tool aims to automate bat detection and species determination around wind turbines. 

Pecos Wind Power, Somerville, MA: Foundation and Installation System to Reduce the Cost of Distributed Wind Turbines. The United States holds gigawatts of untapped clean energy potential in wind resources that are perfect for small wind turbines, however, modern-day technology cannot economically harvest the power. This technology will deliver impactful industry-wide cost reductions to support the capture of this enormous potential nationwide. 

Wildlife Imaging Systems LLC. Hinesburg, VT: A Cost-Effective 3D Wildlife Tracking System. Wind energy is causing the direct morality of several flying wildlife species in North America. Better tools are needed to understand and reduce these impacts. This research will create a camera-based 3D wildlife tracking system so more accurate airspace use and classification of wildlife around wind turbines can occur. 

Willamette Technical Fabricators, Portland OR: Fabricated Floating Offshore Wind Turbine Platforms. Innovative robotic welding technology can reduce the fabrication timeline and cost for floating offshore wind turbine platforms to be manufactured in America, reducing carbon emissions, creating clean technology jobs, and improving the quality and safety of the manufactured products.

The Eocycle wind turbine (right) and the QED turbine (left) are part of three distributed wind scale turbines (15kW to 100kW) at the National Renewable Energy Laboratory’s (NREL) Flatirons campus

SBIR and STTR programs are U.S. Government programs that intend to help small businesses conduct research and development.  

• DOI: 10.35940/ijrte.f7807.059120
• Corpus ID: 243425319

The Strategy of Increased Competitiveness and Development Potential in the Region for the Well Being of Community: An Empirical of Oyster Mushroom Industry in Karanganyar, Central Java, Indonesia

• Published in International journal of… 30 May 2020
• Business, Agricultural and Food Sciences, Environmental Science, Economics

Related Papers

Showing 1 through 3 of 0 Related Papers

• Novavax-stock
• News for Novavax

Strong Buy Rating for Novavax: Strategic Positioning and Enhanced COVID-19 Vaccine Efficacy

B.Riley Financial analyst Mayank Mamtani reiterated a Buy rating on Novavax ( NVAX – Research Report ) today and set a price target of $23.00.

Mayank Mamtani has given his Buy rating due to a combination of factors related to Novavax’s strategic positioning and the effectiveness of its COVID-19 vaccine. The FDA’s recent amendment of the emergency use authorization for Novavax’s vaccine to include the monovalent vaccine targeting the Omicron variant is a significant endorsement. This positions Novavax to meet the current market demands effectively. Furthermore, the vaccine’s availability in pre-filled syringes enhances its accessibility across a wide range of locations nationwide, which is critical for widespread distribution. Moreover, the comparative data indicating that Novavax’s vaccine may offer greater protection against certain COVID-19 variants than mRNA vaccines is a strong point in favor of the Buy recommendation. The vaccine’s potential for longer-lasting immunity compared to the shorter duration of immunity offered by mRNA vaccines could make it a compelling choice for consumers. Mamtani’s optimism is also influenced by the anticipated market share gains, especially with Sanofi’s upcoming ownership of U.S. commercial rights, and the prospects for long-term success with the COVID-influenza combination product, particularly within the lucrative elderly market segment.

According to TipRanks , Mamtani is an analyst with an average return of -14.4% and a 27.68% success rate. Mamtani covers the Healthcare sector, focusing on stocks such as Altimmune, Harrow Health, and Cytokinetics.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Novavax (NVAX) Company Description:

Novavax, Inc. is a late-stage biotechnology company, which focuses on the discovery, development and commercialization of vaccines to prevent infectious diseases. It produces vaccine candidates to respond to both known and emerging disease threats by using the proprietary recombinant nanoparticle vaccine technology. Its vaccine candidates include ResVax and NanoFlu. It also develops immune stimulating saponin-based adjuvants through its wholly owned Swedish subsidiary, Novavax AB. The company was founded in 1987 and is headquartered in Gaithersburg, MD.

Read More on NVAX:

• Novavax says FDA gives updated COVID vaccine emergency use authorization
• Novavax call volume above normal and directionally bullish
• FDA grants emergency use to updated Novavax COVID vaccine
• Novavax price target lowered to $23 from $25 at B. Riley
• NVAX Earnings: Novavax Rallies on Q2 Earnings Beat

Novavax News MORE

Related Stocks