Tuesday, June 3, 2008

Crafting Strategy

A company’s strategy is the competitive moves and business approaches for growing the business, creating a market position, attracting and satisfying customers, competing successfully, conducting operation, and achieving target objectives.

A company’s strategy indicates the choices that management makes about

· how to attract and satisfy customers

· how to respond to changing market conditions

· how to compete successfully

· how to grow the business

· how to manage each of functional piece of the business, and develop needed capabilities

· how to achieve performance targets

A company’s strategy is aimed at creating a product or service that is distinctive from what the competitors are offering or at developing competitive capabilities that they can not quite match. A powerful strategy makes the company distinctive which tilts that playing field in their favor by creating a sustainable competitive advantage over the rival.

A company’s strategy is a blend of both proactive actions to improve the company’s market position and financial performance and reactions to unanticipated developments and fresh market conditions. The biggest portion of a company’s current strategy flows from previous business approaches that are working well to merit launching initiative to strengthen the company’s overall positions and performance.

A company’s strategy should be viewed as a work in progress. Changing circumstances and market conditions cause a company’s strategy to emerge and change over time. Strategy is fluid, representing temporary outcomes that respond to market changes and constant experimentation and modifications. A winning strategy should fit with the organizations external and internal situation, build sustainable competitive advantage, and improve the company’s performance.

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