What is strategy?

What is strategy? This word is always somewhat troubling because of the alleged scale of this concept. Under the strategy, in particular, means the policy of the enterprise. If you look at this concept literally, then this is exactly what the company's leaders intend to do in the future.

For a more complete understanding of what a strategy is, you need to consider this term in several ways.

First, the strategy is the direction of the enterprise's activities with the adoption of long-term solutions. First of all, the company's strategy should be defined from the point of view of decisions that unintentionally or intentionally establish long-term directions of its economic activity. In this case, a company may mean enterprises or organizations, their units or branches. However, under whatever name a business unit exists, the development strategy must include decisions that predetermine its future organizational structure and proposed activity.

Specialists noted two main advantages in this strategy definition. The first is that they are about the decisions themselves and the processes of their adoption, and not about planning. After all, regardless of the existence 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 the strategy allows to overcome the conflict of interests and to overcome their unpredictable consequences.

According to the first definition of strategy, the decision to become a leader in an organization is not considered strategic. This decision, most likely, can be attributed to the strategic plan.

Summing up, the strategy is an activity that can lead to concrete results, which can be either positive or negative.

Thus, the first definition explains what strategy is. However, how is the strategy developed so that the chances for obtaining the desired result are high?

This question answers the second definition, which shows that an outstanding strategy is a different strategy. It will bring superprofits only if the decisions taken are somewhat different from those of competitors. At the same time to differ - it does not always mean to be better.

The company's business model can be adapted to the market only when it is competitive. So, what can be the special attractiveness of this or that model for the consumer? This can be either the best product, or lower prices or better service. In itself, the term "best" always means "not like others".

To maintain the advantage for a long time, it should not be easy to repeat. His 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 the strategy?" Can be found in the specialized literature, which contains basic, or standard, widely covered and tested practices of business development. They reflect different approaches to the expansion of the firm's activities related to changes in each of the following elements: market, product, industry and technology. Each of the listed elements can be in an existing or new state.

In our time, strategy specialists appreciate two main properties of competitive advantage. In order to differ slightly, it is necessary and act differently than competitors. And, consequently, one must be able to make bold decisions, challenging traditional thinking.