2. What is strategy? A Strategy describes how the company should reach it‘s goals and mission * A plan of action to reach a particular goal1 * Strategy is creating fit among a company‘s activities2 A mission describes why a company exists3 A vision describes what the company wants to be4 A Business model describes what the company should do to follow the strategy * Includes the logic of the firm, the way it operates and how it creates value for stakeholders.5 1Casadesus-Masanell, R. and Ricart, J.E., From strategy to Business Models and onto Tactics, LRP 2010 2 Porter, M.E., What is strategy? HBR 1996 3 Collis, D.J., and Rukstad, M.G., Can you say what your strategy is?, HBR 2008 4Collis, D.J., and Rukstad, M.G., Can you say what your strategy is?, HBR 2008 5 Casadesus-Masanell, R. and Ricart, J.E., From strategy to Business Models and onto Tactics, LRP 2010
3. How aretheconcepts connected? Mission Vision The strategy tells what the company should do to fulfill it’s mission and how to reach it’s vision Strategy Thestrategyincludesthechoiceofbusiness model1 Business model The businessmodelismoreexplicitthanthestrategyandtellswhattypesofdecisionthemanagementhasto make. 1 Casadesus-Masanell, R.and Ricart, J.E.,FromstrategytoBusinessModelsandonto Tactics,LRP 2010
4. Whyville Whyvilleis a virtual city with the missionto engage young people in constructive educational activities while promoting socially responsible behavior.1 Whyville has a strategy to reach its mission through engaging the citizens with each other while they participate in educational activities financed by sponsors (e.g. science simulations).2 To fulfill the strategyWhyville’s business model contains developing games and activities together with sponsors, games that the citizens perceives as fun while they are educational. Besides the money from the sponsors Whyville earn money through parents giving their children a virtual allowance to buy virtual products (e.g. pets)3. 1 http://b.whyville.net/smmk/top/gatesInfo?topic=whyville_for_parents 2010-01-20 2http://b.whyville.net/smmk/top/gatesInfo?topic=whyville_for_sponsors2010-01-20 3 http://www.engagedigital.com/2008/11/25/whyville-switches-from-subs-to-microtransactions-debuts-whypets/ 2010-01-20
5. Strategy statement A Strategy Statement defines the objective, the scope and the advantage in less than 35 words * Objective: what the company want to achieve and the time frame * Scope: the customer and/or offering, the geographic location, and if there should be any vertical integration * Advantage: what is the competitive advantage and the company’s value proposition to customers.1 “Whyville makes the learning experience fun and interactive for tweens. Through providing games and activities online Whyville reach citizens all over the world. Using famous sponsors (e.g. NASA) gives Whyville an unique competitive advantage.” 1Collis, D.J., and Rukstad, M.G., Can you say what your strategy is?, HBR 2008
6. Bibliography Casadesus-Masanell, R. and Ricart, J.E., From strategy to Business Models and onto Tactics, LRP 2010 Collis, D.J., and Rukstad, M.G., Can you say what your strategy is?, HBR 2008 Porter, M.E., What is strategy? HBR 1996 http://b.whyville.net/smmk/top/gatesInfo?topic=whyville_for_parents 2010-01-20 http://b.whyville.net/smmk/top/gatesInfo?topic=whyville_for_sponsors 2010-01-20 http://www.engagedigital.com/2008/11/25/whyville-switches-from-subs-to-microtransactions-debuts-whypets/ 2010-01-20
