What is Strategy? Pt 1: Define Strategy

Summary

In this Strata video, Andrew Boulet explores the concept of strategy, challenging common definitions and synonyms for being too simplistic. He delves into the etymology of the word, tracing it back to ancient Greek origins, and discusses its connection to war and business. Despite referencing Michael Porter's influential work, Boulet finds it lacking in a precise definition. Consequently, he proposes his own: strategy is a process of creating well-aligned activities to occupy a valuable position in a competitive landscape. This definition emphasizes strategy as a dynamic, personalized approach, crucial for success in various competitive arenas.

Takeaways

• 🧠 Strategy is not just a plan or a master plan, but a process involving well-aligned activities to achieve a competitive advantage.
• 🔍 The etymology of 'strategy' is rooted in the Greek word 'Strategos', meaning to lead an army or multitude, emphasizing leadership and direction.
• 🤔 Michael Porter's definition of strategy as the creation of a unique and valuable position is insightful but not precise enough for practical application.
• 🚫 Strategy is not about operational effectiveness or becoming more efficient within an existing business model.
• ⚖️ Strategy involves making trade-offs and creating fit among a company's activities, which are key to its success.
• 🔄 Strategy is dynamic and must adapt to changes in the competitive landscape, goals, resources, and competition.
• 🏆 The goal of a strategy is to occupy a valuable position within a competitive arena, which is unique to each individual or organization.
• 🤝 Activities within a strategy must be well aligned; misalignment can negate the benefits of individual activities.
• 📚 Reading widely on strategy, including historical and business literature, is crucial for a comprehensive understanding.
• 🌟 Strategy is about occupying a position in a competitive landscape, not about having a one-size-fits-all approach.

Q & A

What is the main topic of the video by Andrew Boulet?

The main topic of the video is to explore and define the concept of 'strategy', discussing common definitions, their shortcomings, synonyms, etymology, and business literature perspectives before providing Andrew's own definition.

Why does Andrew Boulet find common definitions of strategy inadequate?

Andrew Boulet finds common definitions of strategy inadequate because they often reduce strategy to a simple plan of action or a to-do list, which does not capture the complexity and genius involved in strategic planning.

What is the etymological origin of the word 'strategy' as discussed in the video?

The word 'strategy' originates from the ancient Greek 'strategos', which is a combination of 'stratos' meaning multitude or army, and 'ago' meaning leader, thus literally meaning to lead an army or a group.

What does Andrew suggest is the problem with Michael Porter's descriptions of strategy in his 1996 article?

Andrew suggests that Michael Porter's descriptions of strategy in his 1996 article are problematic because they are more descriptions than definitions, and they do not provide a precise understanding of what strategy is.

According to Andrew Boulet, what is the key difference between strategy and operational effectiveness?

According to Andrew, the key difference is that strategy is not just about becoming more efficient within your existing business model, which is what operational effectiveness is focused on.

What is Andrew Boulet's own definition of strategy?

Andrew Boulet defines strategy as 'the process of creating a set of well-aligned activities with the aim of occupying a valuable position in a competitive landscape'.

Why is it important for activities within a strategy to be well aligned, according to the video?

It is important for activities within a strategy to be well aligned because misalignment can reduce or even eliminate the benefits of one activity with another, leading to ineffective strategies.

How does the video suggest that the definition of 'tactic' relates to 'strategy'?

The video suggests that each activity within a strategy is a tactic, and thus strategy can be viewed as the process of creating a set of well-aligned tactics to achieve a competitive position.

What does the competitive landscape mentioned in Andrew's definition of strategy imply about the uniqueness of strategies?

The competitive landscape implies that there is no one-size-fits-all strategy. Strategies must be unique and tailored to an individual's or organization's specific goals, resources, and competitive environment.

Why might a strategy that works in one competitive arena not work in another, as discussed in the video?

A strategy that works in one competitive arena may not work in another because different arenas have different requirements, dynamics, and competitive factors, necessitating different strategic approaches.

What does the video suggest about the dynamic nature of competitive landscapes and its impact on strategy?

The video suggests that competitive landscapes are often dynamic, which means that strategies need to be adaptable and responsive to changes in the environment to maintain their effectiveness.