Strategy is how to win! Win what? a battle or the war?
How to win a battle, in business markets, is well written about and is for most clear. Less clear and less dealt with, however, is the latter, the question of how to win the war.
This short post aims to elucidate it placing it in the context of the business strategy which we think of as having not one, not two but three fundamental components which are explained below.
First, mission and vision constitute fundamental prerequisites that act like a beacon in the strategy formation with many successful companies purposely striving to keep its light visible through the entire life of their companies.
Second, strategy should have a part that helps a business compete in the specific market arenas that it finds itself in; strategy must provide guidance for it to win so as to survive and prosper. But even when winning, a business cannot remain stationary in the same one market as every market has a natural end as conceptualized by the product life cycle, and besides, limiting itself to one market will not serve the aspirations of growth and profitability for most companies.
So, third, needed is an element of motion; the company must move on, and for purpose and efficiency, move on in such a way as to come closer or reach its ultimate goal, its vision. This is a stage of motion where things are anticipated but have not taken a final form and therefore abundant with risks. So, it must be well thought and prepared as it aims to produce sometimes innovations, other times new creative capabilities or set new game rules or objectives, and if possible, ahead of competitors.
These are 3 [...]