Types of Strategies
Types of Strategies
Three Kinds of Business Strategy
Figure [ 1 ]: Three Kinds of Strategy
There are at least three basic kinds of strategy with which people must concern themselves in the world of business: (1) just plain strategy or strategy in general, (2) corporate strategy, and (3) competitive strategy (see Figure 1). The purposes of this post are to clarify the differences between and among these three kinds of strategy and to provide some questions useful in thinking about all three.
Strategy in General
Strategy, in general, refers to how a given objective will be achieved. Consequently, strategy in general is concerned with the relationships between ends and means, between the results we seek and the resources at our disposal. Strategy and tactics are both concerned with conceiving and then carrying out courses of action intended to attain particular objectives. For the most part, strategy is concerned with how you deploy or allocate the resources at your disposal whereas tactics is concerned with how you employ or make use of them. Together, strategy and tactics bridge the gap between ends and means (see Figure 2).
Strategy and tactics are terms that come to us from the military. Their use in business and other civilian enterprises has required little adaptation as far as strategy in general is concerned. However, corporate strategy and competitive strategy do represent significant departures from the military meaning of strategy.
Figure [ 2 ]: "Bridging the Gap"
Corporate versus Competitive Strategy
Corporate strategy defines the markets and the businesses in which a company will operate. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company’s mission and vision, that is, saying what the company does, why it exists, and what it is intended to become. Competitive strategy hinges on a company’s capabilities,
Three Kinds of Business Strategy
Figure [ 1 ]: Three Kinds of Strategy
There are at least three basic kinds of strategy with which people must concern themselves in the world of business: (1) just plain strategy or strategy in general, (2) corporate strategy, and (3) competitive strategy (see Figure 1). The purposes of this post are to clarify the differences between and among these three kinds of strategy and to provide some questions useful in thinking about all three.
Strategy in General
Strategy, in general, refers to how a given objective will be achieved. Consequently, strategy in general is concerned with the relationships between ends and means, between the results we seek and the resources at our disposal. Strategy and tactics are both concerned with conceiving and then carrying out courses of action intended to attain particular objectives. For the most part, strategy is concerned with how you deploy or allocate the resources at your disposal whereas tactics is concerned with how you employ or make use of them. Together, strategy and tactics bridge the gap between ends and means (see Figure 2).
Strategy and tactics are terms that come to us from the military. Their use in business and other civilian enterprises has required little adaptation as far as strategy in general is concerned. However, corporate strategy and competitive strategy do represent significant departures from the military meaning of strategy.
Figure [ 2 ]: "Bridging the Gap"
Corporate versus Competitive Strategy
Corporate strategy defines the markets and the businesses in which a company will operate. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company’s mission and vision, that is, saying what the company does, why it exists, and what it is intended to become. Competitive strategy hinges on a company’s capabilities,