Capacity Strategy

Capacity strategy in operational strategy refers to how a business plans and manages its resources to meet customer demand effectively. It involves determining the right amount of production ability—whether that’s manufacturing products or delivering services—so that the business can respond to market needs without overextending itself. This strategy considers factors like workforce size, equipment availability, and facility space to balance efficiency and flexibility, ensuring the company can deliver on commitments while minimizing costs and avoiding waste. Ultimately, a well-thought-out capacity strategy helps businesses grow sustainably and maintain customer satisfaction.