Talk about strategy in business, you would think a lot about competitive age, core competencies, virtual commerce, supply chain economics, disruptive innovation, and so on, it’s just that the way experts tend to talk about strategy and they will make it some kind of high brain scientific methodology. Many management gurus pay lot of emphasis on these and many would disagree to it. Forget the arduous, intellectualized number crunching and data grinding that many gurus say you have to go through to get straight. Forget the scenario planning, yearlong studies, and hundred-plus-page reports.
Strategy is all about picking a general direction and implement like hell. Theories can be interesting, fat stacks of PowerPoint slides can make you feel like you have done your job. But you just should not make strategy too complex. When it comes to strategy, ponder less and do more. Virtually every other topic from managing a temperamental employee to the dollars effect on trade and gets more interest by orders of magnitude. Strategy is an iterative process and not nearly as theoretical or life-and-death as some would have you believe.
A businesses and industries, in upturns and downturns, and in competitive situations which a business face from time to time maybe its simplicity was part of its success. Follow some of the strategic steps discussed as follows:
1. First, come up with a big idea for your business which is realistic, relatively fast way to gain sustainable advantage.
2. The second step is to put the right people in the right jobs to drive the big idea forward. To drive your big idea forward, you need to match certain kinds of people with commodity businesses and a different type entirely with high-value-added businesses.
3. Third, seek out the best practices to achieve your big idea, whether inside or out, adapt them, and continually improve them. Strategy is unleashed when you have a learning organization where people thirst to do everything better every day. You can have the best big idea in the world, but without this learning culture in place, any sustainable competitive advantage will not last.
Right strategy is about heading in the right direction. If you are heading in the right direction and are broad enough, you don’t really need to change all that often, especially if they are supplemented with fresh initiatives. A good strategy is based on two powerful underlying principles:
1. Commoditization is evil and
2. People are everything.
When you think strategy, think about commoditizing. Try desperately to make products and services distinctive and customers stick to you like glue. Think about Innovation, technology, internal processes, service add-ons whatever works to be unique. Doing that right means you can make a few mistakes and still succeed. The success of the business depends a lot about how you do it, how you handle the things in the business, the competition element, etc. So it is very important that the strategy used to achieve success in the business is right.