What is strategy

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What is strategy? The goal of strategic planning is to gain a sustainable edge over competitors. It’s all about competitive advantage. So strategy is what you plan to do to gain a sustainable advantage over your competitors. Strategy is the way a company tries to differentiate itself from competitors using its relative to competitors corporate strengths (differences in functional and other strengths) to better satisfy customer’s objective function.

Operational improvements can be viewed as part of business strategy. But for clearer thinking when we think about what is strategy, we should use “strategy” when we talk about how to make an organization stronger versus competitors. It’s about achieving and maintaining a position of relative superiority versus competitors. Good business strategy helps a company strengthen its position relative to competitors, at acceptable cost.

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