strategic (adjective, stra-te-gic, \ strəˈtiːdʒɪk \) tradeoff (noun, trade-off, \ treɪdɔːf \)
Definition: is the process of replacing a particular strategic priority for a different one. Unlike a tactical tradeoff that operates with short-term goals, a strategic one deals with long-term priorities instead. Companies are recommended to regularly introduce strategic tradeoffs to adapt to the dynamic business environment and market changes. The need for this practice may arise when there’s an inconsistency in the company’s image and reputation or if the offered product doesn’t match the target audience’s expectations.
Strategic tradeoff in a Sentence:
- The home furnishing titan, IKEA, made one of the most successful strategic tradeoffs in history by choosing mid- and low-class buyers as their target audience.
- One of the reasons why Apple grew into the giant they are today was their strategic tradeoff of shifting their focus from iPads to iPhones.
Synonyms and related words: tactical tradeoff, competitive positioning, supply chain management, tradeoff analysis, strategic financial management