Historically, the word ‘strategy’ finds its etymological roots in military parlance. But the word began to be used for general, administrative, and business purposes. ‘Strategy’ is about specific solutions to specific problems or objectives. For instance, the lockdown was used as a strategy to curb the spread of the COVID pandemic. When economic activities go down in a country, its central bank reduces the lending rates as a strategy to encourage borrowings. Setting lower prices is a well-known market-entry strategy.
In business also, we need to formulate functional strategies so that the overall business system runs as intended. These functional areas include strategic plan, business development, IT, operations, finance, sales and marketing, HR, supply chain and logistics, etc. If there’s a flaw in any of the sub-systems, it will affect the functioning of the entire system.
Any professional strategy consulting company could tell you that being in retail and eCommerce business, you must define the functional strategies that will make your business model work as intended. The rising complexities in the global business environment, propelled by technology-based services, have heightened the significance of strategic management consultants.