strategy-the-holy-grail-of-business

It provides direction as to

  • What your company aims to ultimately achieve (Vision),
  • What guides your daily works (Mission) and
  • What differentiating strengths you must develop to outperform the competition at what you do (Competitive advantage)

If, for instance, we say that our strategy is “to make customers want to return to us”, implied within it are our Vision to grow, our Mission to make quality and simultaneously competitively priced products and our Competitive Advantage (CA) centered on our organizational capability to create satisfying products in demand by our targeted customers.

At one leg we have our customer needs and at the other our configuration of the product. Business strategy should match the two with each other in a unique mix of effectiveness and ingenuity.

Benefits from having a business strategy are:

  • It makes us focused on the wants of the customer and on how to create meaningful products
  • It guides us to find a position where we can play the competitive game to our strengths while minimizing the influence of our competitor strengths
  • It gives a direction to the work of the company
  • It guides alignment and coordination amongst the company people
  • It generates tactics to win battles and overrun obstacles

In crafting a strategy many tools and frameworks are used like the Strategy Canvas, the SWOT, the Porter’s 5 or 6 forces, the Value Chain or the Business Model Canvas. Each when properly used builds on the insights of the others and together offer a more comprehensive search into what matters in your business thus helping to identify the business strategic elements.

The need for strategy may not come from the start of the company. Businesses originally operating by the owners’ gut feeling though OK in the beginning years, found out that it is not OK later on when hit by changes in competitors, customer likes or technological advancements.

In a world of continuous change, for your company to survive there is no other way than being continuously on the lookout, watching for signs of what is to come, systematically searching to find the holy grail of business, which is no other than your competitive advantage on which to base and craft your strategy.

 

About the author: Panikos Sardos is the Managing Director of P&E Sardos Business Solutions Int., a management consulting firm that offers advisory services, coaching and training and can be reached by email: psardos@sardossolutions.com or telephone: +357 99640912, +357 24400884, www.sardossolutions.com