The success of any company or organization depends on formulating a strategy with a long-term positioning in mind.
A good business strategy implies evolution, change, adjustment, actuality... It is necessary to make a good analysis and, above all, to share ideas with the different managers and areas of the organization in order to consolidate the best plan.
Business strategy is composed of five essential elements:
Given these definitions, competitive strategy is explained based on a triangle, that is, with three fundamental bases for organizations to find the medullar point of their path to success, starting from an additional element in the center of each vertex: the strategic purpose.
The purpose must be defined in order to, from there, generate the entire strategy to be used for the positioning of the company.
That purpose is something we want to achieve, it has to be concrete and difficult, but achievable. From there, three important vertices appear in any strategy structure:
The company's field of action must be defined: where is the game going to be played, what are the boundaries of the business, the market segments, the type of customer I am going to approach?
It must be clear how the game is won. The type of competitive advantage in the market must be established. There are two so-called generic strategies that continue to set the standard: high perceived value and low delivery cost, which refer to the type of market I am going to enter.
The proposal must be defined by one of them and combined with the first vertex to generate the desired positioning of the company.
Once all of the above is defined, I need a plan, decisions and actions to execute it. Processes, systems and others that will lead to the success of the strategy I want for the organization.
Excerpt from the Webinar: "The Three Vertices of Business Strategy", given by Professor Esteban Brenes, Academic Director of the Senior Management Program of INCAE and the program Family Businesses, perpetuating family businesses.
