Session 1

What is Strategy & Why is it Important?

Unit 1.1
What do we mean by Strategy?

SOURCE:
Arthur A. Thompson, Jr., A.]. Strickland III and John E. Gamble (2009). CRAFTING & EXECUTING STRATEGY THE
QUEST FOR COMPETITIVE ADVANTAGE: CONCEPTS AND CASES. MCGRAW-HILL LEARNING SOLUTIONS
 Agenda
01 The Basics of a Firm’s Strategy

02 Why Strategy is Important?

03 Key Concerns in Strategy Development

04 Why Strategy Needs to Evolve?

05 Strategy and Business Model

06 Three Tests of a Winning Strategy

 The Basics of a Firm’s Strategy
A company’s strategy is its action plan for outperforming its competitors and
achieving superior profitability. (Thompson, Strickland, & Gamble, 2009)

What Analyzing the Current Internal & External Environments

? (Where we are Right Now)

Where Defining where the Firm Needs to be in the Future

? (Firm’s Mission, Vision, Goals, and Objectives)

Developing a Strategic Plan to Achieve Desired Goals

How? (Describing How the Firm will Achieve Financial and Strategic Goals)
Why Strategy is an Important Issue?
Strategy is Critical in,
Strategy and Competitors
Strategy is about Being Different from Rivals
Key Concerns in Strategy Development
Strategy is about Being Different from Rivals
• Superior Products & Services
• Building/Acquiring Key Competitive Resources
• Optimal Pricing
• Product/Geographic Expansion
• Seizing Opportunities & Stronger Defense
• Collaboration with Key Partners
• Strengthening Bargaining Power with Key Stakeholders
 Video links

Sun Tzu - The Art of War Short

https://www.youtube.com/watch?v=maOFYVR8B40
Documentary
 
 

American Genius: Jobs Vs. Gates https://www.youtube.com/watch?v=5f6z96HWerE

 Session 1

What is Strategy & Why is it Important?

Unit 1.2
Competitive Advantage and Sustainable Competitive Advantage

SOURCE:
Arthur A. Thompson, Jr., A.]. Strickland III and John E. Gamble (2009). CRAFTING & EXECUTING STRATEGY THE
QUEST FOR COMPETITIVE ADVANTAGE: CONCEPTS AND CASES. MCGRAW-HILL LEARNING SOLUTIONS
 Agenda
01 What is Competitive Advantage?

02 What is Sustainable Competitive Advantage?

03 Developing Competitive Advantage

04 Basics of Five Generic Strategies

 Developing Competitive Advantage
Competitive Advantage is about Optimizing Firm’s Offer/Position Between
Effectiveness vs. Efficiency
Effectively Efficiently
Differentiation Lower Cost
Develop Products & Develop Products &
Services of High Services of High
Value for Customers Value for Customers

Sustainable Competitive Advantage

A firm’s Competitive Advantage is Sustainable if can Potentially Sustain Competitive Threats
 Basics of Five Generic Strategies
• A Firm Achieve a Sustainable Competitive Advantage by Selecting One of the Five
Generic Strategies (Michael Porter)

Low Broad
Cost Provider Differentiation

Best Cost
Provider

Focused Focused
Differentiation Low Cost
 Video links

How P&G Developed Competitive

Advantage through Acquisitions. https://www.youtube.com/watch?v=hi5Ne5gjMTI&t=18s 
 
How Apple Built Their Competitive
Advantage https://www.youtube.com/watch?v=1qsvZqngKz8
 Session 1

What is Strategy & Why is it Important?

Unit 1.3
Company’s Strategy and its Business Model

SOURCE:
Arthur A. Thompson, Jr., A.]. Strickland III and John E. Gamble (2009). CRAFTING & EXECUTING STRATEGY THE
QUEST FOR COMPETITIVE ADVANTAGE: CONCEPTS AND CASES. MCGRAW-HILL LEARNING SOLUTIONS
 Agenda
01 Why Firm’s Strategy needs to Evolve?

02 Strategy and Its Business Model

03 Business Model Canvas

 Why a Firm’s Strategy Needs to Evolves?
Strategy Needs Flexibility to Evolve due to:

• Changing Market Conditions

• Advancing technology
• Fresh moves of competitors
• Shifting buyer needs
• Emerging market opportunities
• New ideas for improving the strategy
 Strategy and Business Model
Business Model Drives the Drives the Profit Formula for Firm’s Strategy
• The Customer Value Proposition
Customer Satisfaction at a price that justifies offering

• The Profit Formula

• V—the value provided to customers
• P—the price charged to customers
• C—the firm’s cost
The lower the costs (C) for a given customer value proposition (V–P), the greater
the ability of the business model to be a moneymaker.
 Video links

Whatsapp’s Business Model

  https://www.youtube.com/watch?v=pe7w9r2pX28 

DIY Toolkit Business Model Canvas Explained https://www.youtube.com/watch?v=_ZuFxQEsE3c

 Session 1

What is Strategy & Why is it Important?

Unit 1.4
What Makes Strategy a Winner?

SOURCE:
Arthur A. Thompson, Jr., A.]. Strickland III and John E. Gamble (2009). CRAFTING & EXECUTING STRATEGY THE
QUEST FOR COMPETITIVE ADVANTAGE: CONCEPTS AND CASES. MCGRAW-HILL LEARNING SOLUTIONS
 Agenda
01 The Basics of a Firm’s Strategy

02 Sustainable Competitive Advantage

03 Basics of the Five Generic Strategies

04 Why Strategy Needs to Evolve?

05 Strategy and Business Model

06 Three Tests of a Winning Strategy

 Three Tests of a Winning Strategy
A Good Strategy Passes the Three Tests
1. The Fit Test
Does the strategy aligns the firm’s internal environment
with it’s external environment?

2. The Competitive Advantage Test

Does the strategy provide any Sustainable Competitive Advantage?

3. The Performance Test

Does the strategy provides a good financial and market performance?
 Video links

The single biggest reason why start-ups

succeed | Bill Gross  https://www.youtube.com/watch?v=bNpx7gpSqbY 
 Session 1

What is Strategy & Why is it Important?

Unit 1.5
Why crafting & executing strategy are important tasks?

SOURCE:
Arthur A. Thompson, Jr., A.]. Strickland III and John E. Gamble (2009). CRAFTING & EXECUTING STRATEGY THE
QUEST FOR COMPETITIVE ADVANTAGE: CONCEPTS AND CASES. MCGRAW-HILL LEARNING SOLUTIONS
 Agenda
01 Why crafting & executing strategy are important tasks?

02 Review of the Entire Session.

 Why crafting & executing strategy are important tasks?

Strategy provides
• A prescription for doing business.

• A road map to competitive advantage.

• A game plan for pleasing customers.

• A formula for attaining long-term standout marketplace performance

Good Strategy + Good Strategy Execution = Good Management

 Video links

Why Strategy Is Important For Your Business  https://www.youtube.com/watch?v=3FX1bS3Lzz

I
 
Thank you