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Definition

Core Strategy

What is Core Strategy?

Core Strategy is the first component of a business model which describes how a firm competes with its competitors in the market. These include the tactics that are at the core of the business strategy.

Understanding Core Strategy

Businesses might have several activities, product offerings, or options rendered, but focusing on a core strategy keeps funds, operations and key workers concentrated. It is the overall manner in which a firm competes relatively to its rivals. The primary elements of a core strategy are - 

Mission Statement

Making a mission statement might allow you to understand what the enterprise stands for and how it operates. It lets your team know whether you've been concentrating on performance or results and makes it obvious to your prospective customers what market segment you serve and what makes your business model unique.

Product / Market Scope

Research different goods or services, study demographics and research your competition. Market research would not only help you identify what your customer expects, but it would also show you how to give the most benefit and assist you in putting your marketing mix into action.

Differentiating Factors

Understanding your competition is essential to moving forward. Although not everybody has the potential to develop exciting products or services, innovation can aid in the improvement of a poor product or the removal of restrictions in an established business.

Practical Example

Apple Inc. is a wonderful illustration of having a strong core strategy. They weren't the first to design a smartphone that could play music. Many were generated, but not in the method in which they were designed. The brand has been able to set itself apart from the competition by explaining why they price its products at a luxury scale - premium quality and top-level privacy. Their success reflects in their sales figures as they continue to climb the ladder on advanced technology and market demand while keeping the prices high. They have a clear mission statement and keep improving with a firm core strategy.

In Sentences

  • Core Strategy is widely used in businesses to incorporate proper operation, and research and to differentiate themselves from competitors. 

 

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