Summary of “Can you say what your strategy is?” by Collis, D and Rukstad, M

There are three critical components of a good strategy statement:
· Objective,
· Scope, and
· Advantage
That is the focus of the article.
Objective:
From a strategic viewpoint is a clear, concise, measurable and time based goal; unlike a mission statement that is the main objective referred to when referring to a company’s objective as these are more the values of the company than the clear goal of the company.
Scope:
This is split into three areas customer or offering, geographic location and vertical integration.
The scope is not as clear-cut as the objective, as it allows for flexibility by employees, but will specify areas that the company is not considering entering, so in case Jones targets the “delegator” and not the “validator” or the “do-it-yourselfer”. With whom they going to do business they are very specific on the two types of customer do not want.
Advantage:
The key ingredient to a strategy statement, this adds clarity about what makes the firm unique and helps employees understand how they contribute to the success of the strategy.
So putting all these together, you can then move into developing your strategy statement, this requires evaluation of the industry, understanding of customer needs, segmentation of customers, and then identifying what unique value, you offer. The company capabilities’ and those of the competitors, from this you can then work where the ‘strategic sweet spot’ is, the point where company is meeting customers needs that a competitor cannot.