Is your strategy actually a strategy? Here is a summary of Michael Porter’s famous “What is Strategy” paper.
- Is not about operational effeciency (every company wants to be more efficient)
- Is not about how you are better than your competitor (every company wants to be better than its competitors)
- Is about how you are different (e.g. are you about cost or quality or speed?)
- Means making a trade off between one good thing and ANOTHER good thing (e.g. Southwest Airlines has only a 737 fleet to increase efficiency and being on time, which means it does not do long haul flights)
- Means choosing what NOT to do as much as what to do (e.g. we don’t do sales at Wild Apricot, we focus entirely on Inbound because of our low ACV)
- Is about creating a fit among your company’s activities (e.g. Ikea’s affordable furniture connects with its focus on self-assembly which connects with having inventory at each location).