The document discusses the importance of strategy for businesses. It defines strategy as a company's action plan for growing the business, pleasing customers, and competing successfully. An effective strategy gives a company a competitive advantage over rivals through lower costs, differentiated products, niche focus, or unique capabilities. For long-term success, a strategy must evolve in response to market changes. A strong strategy is also ethically sound and considers the interests of all stakeholders. The business model must support a profitable revenue structure and costs for the strategy to succeed. Regularly testing strategy ensures good fit and competitive advantage.