Why is it that most executives cannot articulate the objective, scope and advantage of their business in a simple statement? If you don’t know where you are going, any road will get you there.
Your strategy should include a simple, clear, and succinct strategy statement that everyone can internalize, and then use as a guiding light for making difficult choices when executing the business.
Components of Strategy:
- Objective – what are you trying to achieve? This should define your end point, as well as a specific and measurable time frame.
- Scope – what are your business boundaries? This should define your customer, your offering, your geographic footprint, and your vertical integration.
- Advantage – how do you differentiate from your competitors? This should define what value proposition you offer that explains why the targeted customer will choose you. In order to do this, you must have an industry landscape analysis as well as a rigorous, objective assessment of your organization’s capabilities. Of course, the strategic sweet spot: customer needs, your capabilities, and outside your competitors’ offerings (Source: HBR).
What should you be doing (but are not) to maintain your competitive advantage?
