What is a strategy? This word is always somewhat alarming because of the supposed scope of this concept. Under the strategy, in particular, refers to the policy of the enterprise. If you look at this concept literally, then this is exactly what company executives intend to do in the future.
For a more complete understanding of what a strategy is, it is necessary to consider this term in several aspects.
Firstly, strategy is a direction of an enterprise with long-term decisions. First of all, the company’s strategy should be determined from the position of making decisions that unintentionally or intentionally establish long-term directions of its business. In this case, a company may mean enterprises or organizations, their divisions or branches. However, no matter what name a business unit exists, a development strategy should include decisions that predetermine its future organizational structure and intended activities.
Experts noted two main advantages in this definition of strategy. The first of them is that it is about the decisions themselves and the processes of their adoption, and not about planning. Indeed, regardless of the availability of a plan, decisions will always be made. The second advantage is revealed in the priorities of the company. Not all plans are destined to be realized, therefore it is a strategy that allows us to overcome a conflict of interests and overcome their unpredictable consequences.
According to the first definition of strategy, the decision to become a leader in an organization is not considered strategic. Such a decision, most likely, can be attributed to the strategic plan.
To summarize the above, a strategy is an activity that can lead to concrete results, which can be either positive or negative.
Thus, the first definition explains what a strategy is. However, how is the strategy developed so that the chances of getting the desired result are high?
This question is answered by the second definition, which shows that an outstanding strategy is a different strategy. It will bring superprofits only if the decisions taken are slightly different from the decisions of competitors. But being different doesn’t always mean being better.
A business model of a company can be adapted to the market only when it is competitive. So, what could be the particular attractiveness of a particular model to the consumer? It can be either a better product, or lower prices or better service. In itself, the concept of "best" always means "not like the others."
To maintain an advantage over an extended period of time, it should not be easy to repeat. Its imitation should require significant investments from competitors. And by the time they can catch up with the leader, he will already take a step forward and again offer something better.
The most common answers to the question: “What is a strategy?” can be found in specialized literature, which contains basic, or reference, widely illuminated and practice-tested business development techniques. They reflect various approaches to expanding the activities of the company associated with changes in each of the following elements: market, product, industry and technology. Each of the listed items may be in an existing or new state.
Nowadays, experts in the development of strategies appreciate the two main properties of competitive advantage. Moreover, in order to be slightly different, it is necessary to act differently than competitors. And, therefore, you need to be able to make bold decisions, challenging traditional thinking.