Wednesday, February 2, 2011

Strategy fresh view

This is my 2nd sem of MBA and I am bombarded with lots of literature based on what is strategy? so i feel let me write what i understood after 1 month of grueling done to poor souls like me.
Ok let's understand it first ,do you know strategy or in other words do you possess strategy and if you are thinking on this question than your competitor has the strategic advantage ,yeah thats right . Now lets take example your friend has a notes for exam but you don't have ,it means he has the advantage over you in the exam, if he get good marks by this process, he will make the strategy to manage notes every time exam happen and you remain behind him in every exam.Thats strategy learning from environment,past affairs ,competition,experience or whatever you call it to attain preserved state in competition is strategy.I am not entering into all technical terms here to define strategy you can find many good authors for that ,lets take another example little bigger one so whats the strategy of HUL to be no. 1 in FMCG world,yes you got it right its ability oh HUL in distribution,political relation,innovation etc. But these factors haven't come to HUL in flash of time but they are developed across the span of time from past two three decade and now they are capitalizing on their core competency.There is nothing like short terms strategy ,there are short term goal and objectives which are micro part of company overall strategy.Strategy consist of proper fit between our goals and operation,company hs to communicate their strategy to entire company to make this happen.it has to be incorporated with every step of company.Some people get into trap that market is changing,new technologies are coming ,regulation etc so lets change the strategy,but they forget these are the part of implementation and operation of strategy and not the actual strategy of company.Actual strategy is much above all that its about segmentation,differentiation, and definition of our core competence. Operational part is just one of the necessary step in implementing strategy.Take ex. of big company like HP for innovation,GE for acquisition's and many more. They have some first mover advantage but to still to preserve core competence for such long period of time require something that they possess. I end this small article of big concept of strategy,do research ,find more complex tools and techniques on strategy,but i will say just remain ahead of your competitor and learn from your experiences ,imbibe the learning process in yourself.

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