Market strategies are critical for organisations as these enable them to achieve success. It is vital for the managers to develop market strategies in the best possible way such that these can help in making organisations gain a competitive advantage. Scholars define corporate strategy as an action that is adopted for gaining a competitive advantage by effectively choosing different businesses that compete in different industries. As market strategies and corporate strategies differ from one organisation to another, there is a concept called slow cycle and fast-cycle markets strategy.
Slow cycle market strategy
In a slow-cycle market, the resources are limited, and an organisation can manage a monopoly because of this. Competitive pressures in these cases cannot be gotten into such a market. A slow cycle market is rare in today’s competitive business industry and the availability of abundant resources. In a slow market, the market in which the firm operates enjoys an upper hand. There are monopolistic conditions in such business sectors. In a slow market, assets can be protected well. An organisation can create such a business for itself such that no other business can enter the market. This type of cycle is not present in today’s competitive time when compared to the standard-cycle market.
Slow markets have a slow cycle strategy. It is a type of strategy in which the company can return to competitive actions by introducing a strategy. In a slow cycle, the competitive advantages of a firm can be protected from any type of imitation. For instance, a well-known car company, BAAS, is known for its competitive behaviour. The company had increased its prices in a short time only because of this.
Fast cycle market strategy
Another key concept in management is the fast cycle market and fast cycle strategy. Fast cycle time is an old concept and is used by organisations effectively. Large corporations focus on acquiring sustainable competitive advantage by introducing key changes in the business. This helps in managing their time well. Using the concept of a fast cycle strategy, the firms can make quick decisions, develop engaging products and even transform the orders into quick deliveries. This helps in providing exclusive value in the market and leads to high growth and profits. Fast cycle strategy is a type of strategy in which the company can imitate effectively.
Fast cycle strategy has two key critical roles. It provides the capability to the organisation, which is a performance level shaped by the management. The focus should be on developing a firm that focuses on examining its flaws and then taking up solutions to cope with them. Fast cycle strategies ensure that the information can flow quickly in an organisation, leading to well-informed strategic decisions. With a fast cycle strategy, it is critical to cater to the customer orders well and also adapt to the changes effectively. In a fast cycle strategy, huge time is available for proper planning.
It is a critical management paradigm and a perspective of the managers to develop strategies and provide a competitive advantage to the business.
To conclude, both these are important management concepts and should be studied by management students well to address the proper requirements of their assignments.