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Dynamic Business Strategies 



Some businesses thrive during economic crashes as some industries are considered “Recession Proof”. As there are several snippets of doom and gloom during tough times, those who succeed are the ones with a strategy to overcome such situations. While protecting your margins is the most reasonable objective and austerity measures takes precedence, the possibility and potential of revenue generation and growth is often pushed to the back burner.

In the current state of economic flux, is it really too early to begin developing a marketing or a customer acquisition strategy? Is it right to engage in discussion about stability or to begin developing strategies as though we are sure of stability in all aspects of economic systems?

The Game Theory thought process:

If we were to apply the mindset of John Nash’s Game Theory to developing the appropriate strategy we would fist need to understand the potential of equilibrium. Within these constrains one can determine that there could be an equilibrium in a market condition eventually given the fact that the market is reacting to mixed or multiple strategies from multiple players within an infinite set of different industries influencing multiple inter-dependent factors. In simple terms, you need to analyze the possible market reactions and your specific industry into deterministic or probabilistic outcomes. And one also needs to understand that to attain the desired payoff, it is imperative to ensure that the mixed strategy stays within the confines of an equilibrium strategy.


To help understand the application in developing business strategies it is important to understand the two different theories in relation to one and other. An equilibrium strategy within game theory is where the optimal outcome of a strategy action is where there is no incentive to deviate from the initial strategy. It means the optimal outcome of a strategy is one where no participant has an incentive to deviate from their chosen strategy after considering an opponent's strategy. Whereas, a Mixed Strategy involves a company applying a randomized strategy and its competition is no competitor would be able to increase their expected gain by developing an alternate strategy. This during uncertain conditions eventually helps develop an optimal strategy where the company realizes the best possible gains given target markets acceptance or rejection of the company’s products and services.

The need for flexibility and dynamic strategies:


In other words, in order to compete well and make progressive gains in a given business, one needs to develop a Dynamic Business Strategy, where, all possible probabilistic market reactions within the target segment are taken into consideration and a series of strategies are developed to address each potential reaction. This Dynamic Strategy is essential until a state of equilibrium or stability is attained with deterministic or reasonably predictable outcomes that would translate into potential revenue generation and growth.

Hence, a multi-pronged customer acquisition strategy that is flexible needs to be developed that engaged target customer bases with intelligent and competitive components in order to succeed. Such dynamic strategies would involve multiple resources, media and consumer engagement elements that are effective and connects neuroscience and buyer behavioral dynamics seamlessly.

The objective of a business is to succeed in generating revenue and developing a growth focused strategy that is realistic, intelligent and attainable in all possible situations of the market. As the world changes and perspectives are falling back from altered states, companies who are quick to develop smart and dynamic strategies quickly would be the first to regain their target market and establish a firm foothold within their market space.

Learn more about how we can help develop strong business, marketing and growth strategies for you regardless of the economic landscape.

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