Strategy and strategic planning are getting a lot of hype lately. It get's made to be overly complicated and unattainable for the the average entrepreneur. In 12 slides and 8 steps you can start working on a strategy that works for you and your business model. Strategy is not a one size fits all solution!

1. What is Strategy?
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2. Strategy is… 2
• Systematically making the right choices
• Based on current conditions
• Shaped by Values
• Informed by Vision
• A detailed articulation of Mission
• DIFFERENT FROM TACTICS!

3. • Intended to bring about a desired outcome
• USUALLY this is competitive, i.e. builds or
maintains competitive advantage
• CAN also take other forms, e.g. “Exit
Strategy"
Systematic Choices 3

4. Competitive Advantage
• It’s what you do better than anyone else -
• Where does it come from?
– Transaction-cost based view of the firm
– Resource-based view of the firm
– Knowledge-based view of the firm
• From economics – “free” markets have zero
profit: Perfect information, no transportation
costs, no interventions, no monopolies, no
externalities
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5. Position Your Best Resources:
• Perfect Information - Information Asymmetry
• Transportation Costs - Resource Deployment
• Interventions - Lobby For Policy
• Monopolies - Virtual Monopoly Power
And then look outside your business to:
• Externalities - Avoid Negative and
Capture Positive
Competitive Advantage Sources 5

6. • “No battle plan has been written
which survives first contact with the
enemy”– Gen. Dwight D. Eisenhower
• What is your market and “the” market look
like for buyers and sellers?
• Who is your competition?
• What are your capabilities?
• Is there money moving in your market?
CURRENT CONDITIONS 6

7. • Values are shaped by your aspirations for
yourself and the business.
• Values provide the basic frame work of what you
are and are not willing to do.
• Strategy without values is like an architect
designing a house without talking to owners.
REMEMBER: Strategy is about choices not tactics!
SHAPED BY VALUES 7

8. It’s important to be able to be able to communicate
your vision and subsequent mission in a way that
allows people to KNOW, LIKE, and TRUST you.
Also answers these:
• What do we do?
• How do we do it?
• Whom do we do it for?
• What value are we bringing?
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Informed by Vision and
Articulated by Mission

9. PORTER’S GENERIC STRATEGIES
Get familiar with the basic positions:
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PremiumNiche
Feature
Differentiated
Cost Leader
NarrowMass
Market
Cost Function
Primary Attribute
Price-
Value
Leader

10. • Terms are often used interchangeably
• Strategy changes more slowly
• Strategy directs, or at least suggests, tactics
• Strategy comes from the home office (and
may be painful – “go take that hill…”),
tactics are embedded in the strategic
context (“given that we’re going to take that
hill, how will we go about it?”)
DIFFERENT FROM TACTICS 10

11. What are you shooting for?
• Economies of scale
• Diversification
• Vertical Integration
• Expand product lines for existing
customers
• Expand markets to include new customers
There’s always contra-strategy for fun!
EXAMPLE STRATEGIC TOOLS 11

12. 1. Decidewhatsuccesslookslikeforyour
business.
2. Decidetheoutcomesthatwillgetyou
there.
3. Getsystematicaboutyourdecisions.
4. Pickaplaceinyourmarkettocallhome.
5. Delivervalueviainnovation,cost,or
anywhereelseinPorter’sMatrix.
6. Don’tskimponthedifferentiation.
7. Record,Evaluate,andAdapt.
8. RinseandRepeat.
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Conclusion: 8 Steps to Strategy