Strategy is a set of choices that puts you in a good position to succeed. The essence of strategy is to focus on the market in which you have a distinct competitive edge, not the best market to be in. To win, you must pick both the field in which you will compete and the method by which you will do it.
You have a competitive edge only if your opponents are unable or unwilling to match you. When executing your strategy, always consider how your competition will react; as well as consider your strengths and weaknesses with your strategic options.
Strategy is different from planning although they do get mumbled together. Strategy is a set of decisions that positions your company to win, whereas planning is the process of determining how to make it happen. There is no need for strategy if there is no gap between where you are now and where you want your company to go in the future.
Strategic decisions are made at every level of an organisation, with longer-term decisions made at higher levels and more immediate decisions made at lower levels. Planning is related to your objectives; if you provide someone with the tactics necessary to accomplish your strategy, your tactics will become their strategy.
Developing a business strategy provides direction for a company. Setting out a well-thought-out business strategy can guarantee that your entire organisation is working toward the same goals and that workers feel a sense of shared accountability.
A successful business strategy will enable your company to anticipate and respond to changing market demands, discover new market trends and change its strategy by analysing and assessing client expectations and wants.
A successful strategy can support you in determining where your efforts and resources are best spent by helping you in identifying your strengths and limitations. Decisions that could be critical to your company’s long-term profitability and viability.
