Table of Contents
Importance of tactics in business
Tactics are of paramount importance in business, specifically due to the following reasons.
1. To meet competitions effectively
Strategies are implemented through tactics. Therefore, tactics are the micro-level actions in the direction of attainment of organizational objectives and policies.
Managers formulate strategies to win over the competitors, to attack the competitor’s weaknesses like cost, quality, delivery, service etc. Tactics are the actual activities with which the competitor is attacked.
Tactics include advertising, rendering a crucial service, attracting a key customer who in turn get many customers, getting a crucial input at less price etc. Thus tactics are useful to meet the competition effectively.
2. Continuous efforts to curb Aggressive Firms
Some firms react to the business tactics employed by the competitors while some other firms play the leader’s role and attack the follower firms through their tactics. These firms are called aggressive firms.
Aggressive firms create problems for the small, weak and follower firms. Therefore, the follower firms employ the tactics continuously in order to curb the tactics of the aggressive firms. Their business tactics mostly aim at hitting the weaknesses of the aggressive firms.
3. To Retain competitive position
Normally, the firms acquire the competitive position by competing with the competitors through their business tactics. The firms acquire competitive position in the areas like cost, quality, delivery, service, convenience and the like. The firms exert all their energies to retain their competitive position, if not develop their competitive position further. Therefore, the firms employ the business tactics relating the stability and sustainable growth strategies.
4. To consolidate gains
After retaining the competitive position, the next step of the firm is to consolidate the gains. The gains of the firm include new customers, new markets, price/cost advantage, suitability of the product features to the customer requirements, bridging the existing marketing gap by the product, superior service, delivery, and the like. The firm at this stage should employ the business tactics further or intensify them in order to consolidate the gains already acquired.
5. Tactics of Retreat
The firms gain and consolidate the competitive position under certain favorable environmental conditions or opportunities. These opportunities would not be continuous due to the dynamic nature of the environment. Thus, today’s opportunities may turn to be the tomorrow’s threats and vice versa. The competitors would dominate the companies and take away the gains acquired during favorable environment. Hence, the companies should develop the business tactics to retreat.