Business strategy: what it is and what it means

Business strategy is the coherent set of choices that determines where to compete (markets, customer segments, price positioning) and how to compete (differentiating advantage, resource configuration, organizational capabilities). It is a decision grid that makes it possible to respond to a new opportunity or an unexpected request with a reasoned and timely yes or no. The value of strategy lies not in the document that describes it, but in its ability to guide consistent choices without having to start from scratch at every decision.

Distinctive: decision grid
Distinctive: consistent choices
Essential: where to compete
Essential: how to compete
Essential: coherent set of choices
Constant: reasoned and timely yes or no
Constant: without having to start from scratch

Glossary

Business strategy

A coherent set of choices that determines where to compete and how to compete, used as a grid for operational decisions.