The 3 kinds of strategy for any type of business

Once you have settled on a business idea, you want to know which type of strategy to choose to assure a greater chance of success as an entrepreneur. Well, there are 3 strategies to choose from.

One of the reasons Kenyan entrepreneurs get stuck in a rut is failing to come up with a business strategy. If you missed it, you should read on why strategic management is important to all types of businesses.


Cost is the most straightforward strategy to develop. It’s one of those traits we associate with small business owners in Kenya. All your business has to aim for is selling at the lowest price. It’s so easy if you are targeting the low-end segment of the market; where purchases are primarily determined by price. It’s not the sexiest proposition but it has been done before to great success. The woman entrepreneur, Tabitha Karanja did it with Keroche Breweries. You should know, though, that cost strategy is not the best move for a small business since you need economies of scale to cancel out the low prices.


You can rig the system and target a portion of a segment that is not being served. Of course this means a little more effort on your part. You have to conduct extensive market research to see who is being left out by whom. This is how ‘mama mboga’ has survived the onslaught by supermarket chains into residential areas while the ‘duka’ has not. Nobody (as yet) can match the proximity and convenience they offer.


You could yet face the competition head-on and stand out. This business strategy is useful in retaining customers. A repeat customer is better than a new customer. What does this have to do with my small business, you ask. Differentiation doesn’t necessarily require the sophistication of branding; you could tip the balance in your favour with simple moves like ensuring better customer service or offering a bit more quality to the market.