The Basics of Business Strategy
- Enterprise Stewardship
- May 19
- 3 min read
Updated: Jun 10
Strategy is a vision for the future with a plan for achievement. It answers the fundamental question: WHO will you serve?
A business without a clear who—without a defined customer, product, and marketplace strategy—will struggle with constant customer turnover, lower margins, and team member discontent. A weak strategy results in a mediocre performance in the competitive world of business.
“Just having satisfied customers isn't good enough anymore. If you really want a booming business, you have to create raving fans.” - Ken Blanchard
Nothing happens in business until a sale is made. A lack of sales is the number one reason companies go out of business. The solution? A strong strategy that creates massive customer loyalty by serving customers with excellence and meeting their needs better than anyone else.
We have a Strategy Tool designed to help you create Raving Fans—customers who are so thrilled by your business that they actively promote it to others. It walks you through defining who you serve, identifying your unique solution, and setting long-term goals.
The Power of Differentiation
If you are simply producing a generic product or service, you become a commodity—fighting for customers in a sea of competitors. However, when you are unique—when you differentiate your business with a unique product, a proven process, and a strong relationship with your ideal customers—you cultivate Raving Fans.
It’s not just about being different. It’s about providing so much value that customers enthusiastically spread the word about your business.
Before we dive into the specifics of the Strategy Tool, let’s review the key Drivers of Principles, People, Practices, and Performance.
Strategy vs. Operations vs. Execution
It’s crucial to understand the difference between Strategy, Operations, and Execution.
STRATEGY answers the question of WHO you are serving, what product or service they need, and the experience they expect.
STRATEGY focuses on where you want to be in 3-10 years.
STRATEGY defines something you aren’t doing yet but could do in the future.
STRATEGY is about your competitive advantage—what sets you apart from the competition.
Ask yourself:
What differentiates my product or service?
Are my people exceptional in customer service?
Does my product exude excellence?
Are my processes seamless and consistent?
The Mechanics of Strategy
Often, strategy seems like an abstract concept—something only grand strategic wizards can master. In reality, strategy is simple:
Identify a problem
Provide a solution
A strong strategy requires analyzing large amounts of information. To simplify this, you will complete one primary tool: The Strategy Tool. Below is an outline of the process:
The Strategy Tool
The Problem
Defining the Customer's Problem
Assessing the Marketplace & Competition
Your Unique Solution
Defining your Unique Solution using the Unique Solution Tool
Understanding your Strengths & Constraints
Setting Strategic Goals
Establishing clear, long-term Strategic Objectives
The Strategy Team: Who Defines Strategy?
Developing a strong strategy involves multiple people within an organization. While many team members contribute by gathering and analyzing data, the final strategy should be defined by a small group of trusted leaders—the Strategy Team.
Who makes up the Strategy Team?
Trusted advisors and senior leaders
Individuals with vision and strategic thinking abilities
The President or CEO, who leads the team and coordinates efforts
If applicable, a Board of Directors or Advisory Board should give final approval of the Strategic Operating System
Strategy: The Foundation of Long-Term Success
A strong strategy is the foundation of a successful business. The bigger the vision, the stronger the foundation required.
A well-crafted strategy is based on data. Strategy requires collecting, analyzing, and synthesizing large amounts of information to ensure it is rock solid.
Strategy must be dynamic. Business landscapes change, and strong leaders continuously adapt strategy to stay ahead of market trends.
A weak strategy leads to failure. Without a clear direction, businesses risk losing focus, wasting resources, and failing to create long-term value.
The Key to Winning in Business
A great strategy is what sets apart thriving businesses from those that struggle. By answering the question WHO are we serving?, defining a Unique Solution, and setting clear Strategic Goals, your business can create loyal customers and dominate the market.
A well-developed strategy isn’t a luxury—it’s a necessity for long-term business success. Are you ready to refine your strategy and build a business that creates Raving Fans?
Comments