What Makes a Strategy a Winner?
1. Three questions are used to examine the merits of one strategy versus other & distinguish a winning strategy from a losing or mediocre strategy:-
(a). How does the strategy fit the company's situation?
I. To achieve something as a winner, a strategy has to be well coordinated to industry & competitive situation, a company's best market opportunities & other portions of the enterprise's external environment. Unless a strategy illustrate a tight fit with both the external & internal phases of a company's whole condition, it is likely to generate less than the best capable business results.
(b). Is the strategy helping the company achieve a sustainable competitive benefit?
I. The bigger & more rough the competitive border that a strategy helps to build the more commanding & appealing it is.
(c). Is the strategy resulting in enhanced company performance?
I. Two types of performance improvements inform the most about the class of a company's strategy: (1) increases in profitability & financial strength & (2) increases in the company's competitive strength & market rank.
2. Strategies that are come up short on one or more of the exceeding query are plainly less pleasing than strategies passing all three test query with flying colors.
CORE CONCEPT: - A winning strategy must fit the organization's external & internal location, build sustainable competitive advantage & improve company performance.
3. Other criterion for judging the qualities of a particular strategy include internal consistency & unity among all the pieces of strategy, the level of risk the strategy poses as compared to alternative strategies & the degree to which it is flexible & adaptable to changing circumstances.