A proactive strategy in a business involves anticipating the dynamics of the market and the probable changes in competition, well in advance. This approach includes predicting and identifying the change before it actually occurs and adopting a suitable alternative strategy as a result.
This approach revolves around the concept that it is essential to be well aware of the dynamics of the market, and thus, take actions to prepare in advance, and shift the organizational responses to different altered environmental factors.
Businesses that are active in the technological industry; need to keep abreast of the new ideas being introduced within the market, and design appropriate plans of action to quickly adapt to an ever changing market environment.
Adopting a proactive approach helps spend time and money in the right way, while building the organization. It helps the organization save both, time and money, in the short and long term as well. With a clear idea of what to expect in the future, an organization and its employees are prepared with a strategic plan, to counter the effects of a major policy change or critical alteration in the industry procedures.
By opting for a proactive approach, a business can build the company right, from the start, by designing a structure which is well aligned to their own goals, mission, vision and objectives, with the future in mind. This will help the organization take every business decision on the basis of their short and long term objectives that are planned in advance, keeping the probable changes in the market dynamics in mind.
A reactive approach is tantamount to giving a reaction, once a major change has taken place in the market. It is just like opting to change the entire outdated software and technological system within the company, after the latest advancements have taken the industry by storm; speeding business processes and leaving you unable to cope.
As opposed to this, an organization which works with a proactive approach, will update its system processes with the first proved advantage of the new technological systems, and will improve their efficiency to increase their market share, where a reactive approach organization is still scrambling to regain their former clients.
Given the marked differences in both approaches, which approach would you want to opt for in your business?