Strategy is not competing to be the best
Strategy is not competing to be the best. Strategy is competing to be unique. Strategy as action, aspiration and vision. The essential starting point for strategy is how to be unique and deliver unique value to the customer. Strategy rests on unique activities. It is about being different by do different set of activities than other rivals in order to deliver a unique mix of value. A sustainable strategic position requires trade-offs means that a sustainable advantage cannot be guaranteed by simply choosing a unique position. It is because, the competitors will imitate a valuable position by choose to reposition itself to match the superior performer and seek to match the benefits of a successful position while maintaining its existing positon.
Strategy also fit drives both competitive advantage and sustainability. There are three types of fit. The first-order fit is consistency between each activity and the overall strategy. It ensures that the competitive advantages cumulate and do not erode or cancel themselves out. The consistency makes it easier to communicate the strategy to customers, employees and shareholders and it will improve implementation through single-minded in the cooperation. Second-order fit occurs when activities are enforcing and the third-order fit is as optimization of effort. The coordination and information exchange across activities to eliminate redundancy and minimize wasted effort are the most basic types of effort optimization. Fit is fundamental to the sustainability of the advantage. Fit among activities also creates pressures and incentives to improve operational effectiveness, which makes imitation even harder. Rediscovering strategy is where the profit becomes the key of successful strategy. It means that the profitable growth is a very important matter. So, the top management in an organization shall define the organization position and strategy, making trade-offs, forging fit among activities and building an innovation machine. Strategy is the creation of a unique and valuable position, involving a different set of activities which are few need of customers, broad needs of few customers and broad needs of many customers in a narrow market. There are a few barriers to strategy that are flawed management concept, industry convergence pressures, internal practices and capital market biases.