Small businesses in New York City use a number of systematically planned and implemented business strategies. The significance of business strategy to steer business venture during uncertain times in unchartered territories could not be overemphasized and current crisis proves it.
For example, new business ventures in New York City (NYC) may face different challenges than an organization that are well-established. It is important to understand that different companies in the New York City implement different business strategies, depending on their diverse business goals. This article illustrates some of the popular business strategy NYC that many newly established or well-established business firms implement in their organization in New York City.
1. Acquisition strategy
A small business or organization in New York City with extra funds/finances may use a timely planned and executed acquisition strategy for gaining a competitive advantage. The acquisition strategy is used for purchasing another business, or one or more product lines of that business. For example, a small business in the Bronx may purchase a comparable business chain in the Manhattan to expand its operations.
2. Product differentiation strategy
Small businesses in New York City will often use a product differentiation business strategy when they have a competitive advantage such as excellent quality or service. For example, a small manufacturer in Queens or in Brooklyn may set themselves apart from its competitors with its state-of-the-art machinery, infrastructure, cutting-edge technology and superior engineering design of its product range. In addition to setting themselves apart from the competitors, product differentiation business strategy can also help small build brand loyalty.
3. Growth strategy
Growth business strategy helps companies to introduce a new product or add new attributes to existing products. A small company in Queens or in Brooklyn may be forced to modify or increase its productivity in order to match up with its competitors. In case, small business venture doesn’t implement growth strategy in its organizations, chances are high that the customers in the New York City may start using the cutting-edge technology of a competitive organization.
Different cell phone businesses are constantly adding new attributes on their mobile phone. It is important to understand that cell phone companies that do not keep up with customer demand will not stay in business for a very long time in New York City. Finding a new market for its products, a small cell phone company may adopt a growth business strategy.
4. Price-skimming strategy
Many small business ventures implement a prices-skimming strategy, which involves charging high for products or services during the introductory phase. In order to quickly recover its marketing, production and advertising costs, many small business ventures in New York City use planned and systematically executed price-skimming strategy. In accordance with their business goals and requirements, the price-skimming strategy can be customized.
For example, a small e-commerce site may introduce a particular model of reputed mobile brands on its website. If the e-commerce site is the only one selling the smartphone, customers that really want to purchase the smartphone may pay the higher price.