What is Strategy with Example
List of Contents
In this article we are going to learn what is strategy with example of how various companies use strategy to achieve a competitive advantage.
What is strategy?
Strategy is utilizing your core competencies to achieve a competitive advantage in the Marketplace.
Market place is the place (online or offline) where the buyers and sellers all function and engage in transactions.
At the very basic level strategy can be seen as a plan. A good thing to remember is that strategy is not a goal but a means to achieving the goal. When businesses set business objectives the way to achieve them is laid out in a detailed strategy based on which the overall strategies model they adhere to.
Understanding ‘what is strategy’,better through war examples
Strategy is not a new concept. In fact that is of prime importance in the ancient world where kingdoms wage war against each other. As a General one needed to be a master of strategy so that they could gain an advantage in the battlefield and eventually vanquish the enemies. The desired result of strategy is winning the war. There is no use of a strategy that’s not helping an army win.
An example of what is strategy and how it was used can be found in our discussion of Alexander’s battle of Guagamela against the Persian Empire.
The problem with this is that it is difficult to know whether your strategy will be successful or not because there are so many factors that can apply in any situation. No strategy is ever foolproof.
But chances for success are greatly heightened. (You will find what is strategy with example of modern companies towards the end of this article)
How is strategy created?
Strategy has to be devised based on the situation and after a thorough assessment of the environmental factors. The various external and internal factors are to be examined and then the competitors analysis has to be carried out before devising any strategy.
There are many strategy models that can be used such as:
Porter’s Generic strategies
(click on the links above to learn how to use each strategy models to achieve business objectives)
Strategy Example
Modern businesses understand that strategy rightly devised is the key to survival.
Take Walmart for example. Walmart follows a cost leadership strategy which allows it to outsell all its competitors. To achieve success with this strategy they have aligned their business functions and processes to be cost efficient and hence they are able to maintain a competitive advantage in the marketplace.
In the same market place we have Trader Joe’s which follows primarily a differentiation strategy where they focus on customer satisfaction with the shopping experience as well as unique selection of products that are unavailable elsewhere. So in a highly competitive marketplace they manage to have a competitive advantage too.
Amazon has a strategy where it focuses on customer needs such as convenience, speed and price.Amazon as a whole also focuses on innovation and technology integrations for success.
Here is where Jeff Bezos explains the strategy of Amazon
Amazon Business Strategy
So strategy is a plan, but more than that it is the way in which the company manages to conquer the marketplace and get customers. Most small businesses neglect this fundamental task and end up doing whatever every other business they know is doing and end up remaining a small business.
Good strategy is the essence of business success and applying these models will help businesses clarify the strategy and leverage their strengths to utilize the environmental changes to their advantage.
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