Strategy means consciously choosing to be clear about your company’s direction in relation to what’s happening in the dynamic environment. With this knowledge, you’re in a much better position to respond proactively to the changing environment.
The fine points of strategy are as follows:
Establishes unique value proposition compared to your competitors
Executed through operations that provide different and tailored value to customers
Identifies clear tradeoffs and clarifies what not to do
Focuses on activities that fit together and reinforce each other
Drives continual improvement within the organization and moves it toward its vision
Knowing what strategy is can also be explained by looking at what strategy isn’t. Dr. Michael Porter, the leading strategy guru and professor at Harvard University, says strategy isn’t the following:
Agility
Alliances/Partnering
Aspirations
Best practice improvement
Downsizing
Execution
Flexibility
Innovation
The Internet (or any technology)
Learning
Mergers/Consolidation
Outsourcing
Restructuring
A vision