Business strategy is a continuing rather than a fixed process and too many businesses fail to adapt their strategy in the light of changing market conditions and new developments in their market.
Most businesses start out with a Business Plan containing their overall strategy, but they rarely measure how they are performing against it and regard the plan as a fixed document rather than an evolving one. In business things constantly evolve, maybe as a result of a change in technology or legislation, or something more business specific such as a new competitor entering the market. For example, in the current climate people generally have less money to spend, so consumer preferences change, affecting demand, and you may need to change your business strategy to maintain demand for what you offer.
Whatever the catalyst for change, you have to be flexible and prepared to develop your strategy to meet the new conditions. However, most people don’t understand the importance of the continuous development of their business strategy and so do not see the need to change something that appears to be working for them at that moment.
By monitoring and reviewing your business performance and keeping abreast of developments in your market, you can develop your strategy in the light of changing market conditions and this should give you a competitive advantage over your business rivals.