Strategising for the business
Updated: Jan 11, 2019
In the week 4 of the module, we learned about Strategic Management. A strategy defines if the business will be successful or not. A good strategy can make the company rise above its competitors, a bad strategy can make a good product/service seem irrelevant.
‘A strategy is a framework for making decisions about how you will play the game of business‘(A. Latham,2017). When every business is working towards the same goal, with a same type of product, strategy is used to differentiate them. A strategy is a change in the business model of a business. A little change in strategy will effect in changes in business model canvas. Every business has some kind of strategy. As shown by the cartoon in the presentation, having no strategy is also a strategy (but a lousy one).
Before the session, we had a quiz to do. the Azza Al Qubaisi quiz. It was the story about Azza, a jewellery designer from middle-east. It was her life story and how she employed different strategies to be successful and achieve her goal. Although her first strategy was not quite successful, but by changing it timely, she was able to work it out and be successful.
Mintzberg’s 5 p’s for strategy(J Song,2018)
Strategy as a plan- It means any business plan that a company is following
Strategy as a ploy- It refers to the things company do to beat its competitors in the market
Strategy as pattern- Planning is another thing and executing it another. Pattern refers to executing a plan using flow of actions
Strategy as position- It refers to positioning the company in the business environment.
Strategy as perspective- It means that strategy is done when different minds come together and work towards it. It means individuals who have the same behavior or thinking are working together towards the same goal.
This was more understood by the Business Strategy Simulation game. All companies start at the same point. but depending on the strategies, companies are either successful or failure(Luckily we ended up being first in the game). From the onset of the game our strategy was to have our shoes at a premium quality at not so premium price(strategy as a plan). We decided to be a brand like ‘timberland’. We estimated that the other teams will not go into the same price/market segment(strategy as perspective). For the whole game, my team was always ahead of the competitors on the quality. At year 11 and 12, although our quality was high, we were positioned the last. For the year 13, we changed our strategy a little bit and increased our prices by $10 for each product. This strategy proved hugely successful as we jumped three places and became first in the year 13. From year 13, we decided to position our brand with the highest quality and highest price(Strategy as position). We also noted that another reason for our success was that, we were dominating in the private label. We decided that private label will be our market segment which we don’t want to leave. This continued till the last year(Strategy as a pattern). In year 16 and 17 other two teams got a part of the private label because of their lower prices than ours. for the final year, we decided to lower our private label prices by as much as $5 to undercut the competitor’s prices and making sure that their shoes remain unsold, and our shoes sell although at a lower price(strategy as a ploy)
That’s how I learned the most about what is a strategy.
Ann Latham, what the heck is a strategy anyway?, Forbes.com, october 29, 2007, https://www.forbes.com/sites/annlatham/2017/10/29/what-the-heck-is-a-strategy-anyway/#163693737ed8
Janja Song, October 16,2018, Strategic Management, Managing in the creative business.