What is Strategy?

Strategy is about creating a differentiated and valuable position with

the help of a certain set of activities.

Companies must outsource in order to gain efficiencies and they

should have some competencies in order to stay ahead in the
market. In some cases there are operational improvements but
companies are unable to turn it into sustainable profits.

Operational effectiveness and strategies play a crucial role in

bringing out superior performances in companies. Operational
effectiveness means performing same activities but better than the
rivals it involves using the inputs in the best possible ways so that
there is minimum wastage. On the basis of operational effectiveness
some companies have outperformed in the market. Imitation by
rivals in terms of technologies, management technique and
improved inputs competition becomes more intense and no one
wins.

Competitive strategy involves being different and choosing

completely different set of activities. Low cost position comes only
when companies use strategies like “do it yourself” which results in
providing a competitive edge.

Strategic positioning arises from 3 sources:

1. Variety based positioning is based on providing a variety of

products or services rather than doing customer segmentation.
2. Need based positioning is about serving all the requirements of
a particular group of customers.
3. Access-based positioning