Fundamentals of strategy

At a fundamental level, strategy boils down to two options: Do what everyone else is doing (and spend less money doing it), or do something no one else can do (or haven't thought of).

Either approach can be successful. Competing by doing what everyone else is doing means competing on price (that is, learning to be more efficient than your rivals). But it also shrinks the pie and profitability declines for an entire industry.

Alternatively, you can expand the pie by a unique advantage you create with an intelligent value chain and business model.

One could divide strategy ideas into those that focus on:

1) Doing something new and finding or creating uncontested new markets.

2) Building on what you already do.

3) Reacting opportunistically to emerging possibilities.

In the face of rapidly changing technologies, globalization, and the accelerating pace of change, there remain endlessly clever new ways to make money and beat the competition.

Inspired by: Harvard Business Review - What Is Strategy, Again? By Andrea Ovans