Strategy: When Everyone Talks About It, But Few Know What It Really Is
- Dr. Manuel Blasini
- Nov 4, 2024
- 3 min read
n the business world, the word strategy has become a common term—yet it remains one of the most misunderstood. According to Michael Porter, renowned economist and Harvard professor, strategy is not simply a set of tactics or a list of goals (What Is Strategy?). It’s a comprehensive framework that defines how an organization will create unique and sustainable value in its market. However, many companies continue to use the word "strategy" as a buzzword—disconnected from its true purpose.
When organizations confuse strategy with operational planning or mere ambition, they fall into the trap of doing "more of the same," losing clarity, focus, and competitive edge. Instead of gaining a strategic advantage, they get stuck in a reactive cycle, unable to stand out.
What Isn’t Strategy?
Before diving into what strategy really is, it’s essential to clear up some common misconceptions. As Porter explains in his Harvard Business Review article, strategy is not the same as operational effectiveness. Doing things better than the competition might bring short-term improvements, but it doesn’t create lasting advantage. Common misconceptions include:
It’s not a wish list: Saying “We want to be market leaders” is a goal, not a strategy.
It’s not a set of disconnected tactics: “We’ll invest in digital marketing” or “We’ll hire more staff” are isolated actions—not strategies.
It’s not synonymous with innovation: Innovation can be part of a strategy, but it’s not enough on its own.
Confusing strategy with these concepts leads companies to waste time and resources on uncoordinated efforts, often with disappointing results.
So, What Is Strategy?
Strategy is “the creation of a unique and valuable position involving a different set of activities.” In other words, it’s a deliberate plan that guides an organization toward competitive advantage—leveraging its internal strengths while navigating external market dynamics.
According to Harvard Business School in their article What Is Business Strategy & Why Is It Important?, business strategy acts as a map that defines:
Long-term direction: What does the organization aim to achieve and where is it headed?
Competitive advantage: What makes the business uniquely positioned compared to its competitors?
Required resources: What capabilities and assets are necessary to reach the goals?
Scope: In which markets, industries, or geographies will the business compete?
How to Build an Effective Strategy
Define a unique value proposition: What problem are you solving, for whom, and what makes your company different?
Assess your environment: A thorough analysis of the market, competitors, and trends is essential. Tools like Porter’s Five Forces or SWOT analysis can provide clarity.
Choose where to compete: Effective strategy requires making tough choices about which markets, customers, and products to focus on—and which to leave out.
Align your resources: Strategy must be backed by tangible capabilities and resources that support execution.
Plan for the long term: Strategy is not static. It must be adaptable, but always anchored to a clear goal.
Why Do So Many Organizations Fail at Strategy?
One of the most common pitfalls is an obsession with operational efficiency. Many companies focus on improving internal processes, cutting costs, or launching products faster—without asking whether these actions differentiate them. This “race to be the best” often leads to convergence, where all companies start to look the same.
Another frequent mistake is the lack of clear strategic decision-making. An effective strategy requires saying “no” to certain opportunities in order to concentrate on what truly matters. Organizations that try to do everything often dilute their focus and resources.
Strategy as a Growth Engine
A well-designed strategy enables companies to:
Define clear priorities: They know what to focus on—and what to let go.
Leverage their unique strengths: They double down on areas where they can win sustainably.
Respond to change with confidence: Strategic companies have a strong foundation that helps them adapt without losing direction.
Strategy is not a luxury or a trendy buzzword—it’s the core of a successful organization. If your business lacks a clear strategy, chances are you’re reacting to the market instead of leading it.
As a business consultant, I’ve seen firsthand how companies that take the time to define and execute a strategy transform not only their results but their culture. But I’ve also seen organizations stuck—trapped in a cycle of disconnected tactics they mistakenly call “strategy.”
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