Every business leader should be able to create a good strategy. Think of it as the intersection of two critical dimensions: where to play and how to win there. First, decide the regions, customer segments, product categories, and channels in which you will operate. Strategy is about doing some things and not others, so make clear where you won’t play as well. Then, find a distinctive way to win on your chosen playing field. Going to the same market with the same strategy as your competitors is a terrible move. Choose specific activities that are different from your competitor’s. For example, if your competitor leverages its supply chain to have the fastest delivery cycle, don’t try to compete on speed. Instead, focus on customer experience or product quality.
Adapted from “The Two Choices to Make in Strategy” by Roger Martin.
