Business strategy development is the method by which businesses develop a plan to meet their goals and objectives. It involves analyzing the business in its entirety and the most important internal factors like financial performance and customer satisfaction, as well as staff turnover and sales and marketing trends. It also requires knowing the external business environment and the market you are operating in.

A long-term vision of the future of the company is the first step in formulating a business strategy that is effective. This will ensure that all managers and departments are working towards the same goal.

The business strategists must then identify the strengths as well as the weaknesses and opportunities of the business. This is usually done using SWOT Analysis. This is essential because it provides a snapshot of the company and is the first step towards knowing the areas where the company can gain in the market.

Market segmentation is a crucial process in the development of a business strategy. This helps identify the group of customers who are most likely to buy the firm's goods and services. This is important, as it enables the company to meet their desires and needs precisely. It is also the initial step in creating an offer of value, which concentrates on the gap between customer willingness to pay and the price.

The final step is to translate the strategic goals into quantifiable, realistic targets on which everyone can meet. This should be a joint effort, with managers sharing their expertise and knowledge. It is essential to have established a framework which encourages frequent and clear communication. This will allow you to remain on track with your goals and strategies, and be prepared for unexpected obstacles.