The Importance of Strategy (Why)
The importance of strategy is to create a strategic competitive advantage. This should be more difficult to imitate; compared to the relative ease, at times, with which competing companies typically imitate one another’s products and/or services delivered. Thus, the importance of strategy is to assist companies in creating a real competitive differentiating customer experience. Organisations need something different, something completely new to enable sustained holistic competitiveness.
Example:
After working together for many years in purchasing at a major retail supply company, Anna and Lesley started their own supply business to provide a one-stop-shop for smaller business. They differentiated their business initially on factors of price and convenience and strong relationships with buyers. But after five years of rapid growth, they seem to have hit a wall.
A recent promotional campaign aimed at attracting new customers has yielded little impact. Advertising in industry publications and rebranding their business materials hasn’t helped either. Interviews with some of their better customers revealed a major issue: Big online retailers have started selling many similar supplies at lower price points, and smaller specialty vendors have provided superior access to higher-quality product lines.
“It’s a better experience working with you,” one client told them. “But my boss only cares about the bottom line.” Feeling price and competitive pressure in a commodity business, Anna and Lesley know meaningful change is required to the way they differentiate and market their business. But when everyone is marketing a very similar product line, it’s a challenge to stand out.
The Expert Says:
Dorie Clark: If Strategy Is So Important Why Don’t We Make Time for It