Planning an Operations Strategy for Your Business
The goal of every business is to create value for its shareholders. Setting targets and then achieving them is the work of a good operations strategy in the right direction.
The operations strategy of a company defines its long-term goals in sync with its vision and mission. By leading the organization in the right direction, it is able to deliver sustainable growth and security, and most importantly, competitive advantage.
Through strategic planning, a company can charter how it will get to its goals. It determines the expenses, people, supplies and other resources needed to get from point A to B.
Operations strategy and the environment
When developing a strategy, managers have to consider factors in the internal and external environment that may influence it. Using models such as the SWOT analysis and the PESTEL analysis, businesses get a complete picture of their surroundings.
The SWOT analysis takes a look inside and outside the organization. It examines threats from the competition, possible opportunities, and weaknesses and strengths within. On the other hand, PESTEL analysis analyses macro factors outside the company. More specifically, they are political, economic, social, technological, legal and environmental.
Operations strategy and competitive advantage
A strategy focuses on your competitive advantage and defending it. Because it gives you a larger share of the market and more funding, having a competitive advantage is a mean of survival in today’s high paced world. As a result, companies with it have greater financial security and leverage in the marketplace than their rivals.
However, maintaining strong competitive advantage is tricky because it has to be unique and difficult to imitate. That uniqueness doesn’t just lie in a product feature – it can be price, values or brand image. Pioneers often rush to patent their ideas to dissuade copycats, but that isn’t sustainable as people often find a way around them. Strategy plans a way to keep delivering the values or features that your customers want and to stay one step ahead of the competition.