Developing Your Strategy
Is strategy an art or a science? It's both.
Developing strategy is largely about balancing ends and means. The end must be proportioned to the total means, and steps along the path to the end goal are important, too. The means used in getting to each intermediate step must be proportioned to the value and needs of that step. A big challenge in development is figuring out this balance and how to produce it and how to coordinate ends and means.
Developing a competitive advantage is about delivering a distinctive value through a distinctive value chain. Matching customers' definition of value to the value chain.
Robust strategies involve a degree of tailoring. You can mentally test a possible strategy by considering its suitability, acceptability, and feasibility. Suitability is about whether the proposed strategy gets to the end goal.
Acceptability is about the ways to accomplish the strategy. Does the proposed course of action or concept produce results without excessive expenditure of resources and within accepted modes of conduct?
Feasibility tests means and asks whether the means available are sufficient to execute the plan. A strategy must meet or at least have a reasonable expectation of meeting all three tests to be valid, but there is no upper limit on the number of possible solutions.
Strategy is concerned with how (way or concept) leaders use the power (means or resources)
- Strategy is proactive and anticipatory.
- The strategist must know his or her goal.
- Strategy must identify a balance among the objectives, the methods to pursue the objectives, and the resources available.
MOST COMMON MISTAKE
Choosing the same core competencies as everyone else.
Is your company different from your rivals? If you are
1) Trying to get the same customers
2) Meet the same needs
3) Same price
Then you have a poor strategy.
Business Model Generation made this "canvas" for articulating your strategy.