Factors include project requirements, technology stack, testing objectives, application complexity, resource availability, budget constraints, and regulatory compliance. A well-defined test strategy aligns testing efforts with business goals, identifies automation opportunities, and mitigates risks effectively.

Key components include test objectives, test scope, automation approach, test environment setup, test data management, defect tracking, reporting mechanisms, and resource allocation. A comprehensive test strategy ensures that testing activities are planned, executed, and monitored systematically to achieve desired quality outcomes.

Test strategy development facilitates the identification of suitable automation frameworks, tools, and techniques for automating repetitive and time-consuming testing tasks. It helps prioritize test cases for automation based on criticality, frequency, and complexity, optimizing testing efforts and accelerating release cycles while maintaining high software quality.