Strategic Transformation

When thinking about a strategic shift…

Analysing the external environment matters

See the relevant changes in the key market factors;

Consider every link in the value chain, including changes in how end consumers use the product — sometimes the customer isn't the end consumer, but the end consumer is a factor you must consider.

If the company's performance is slipping, don't fall into this trap: chasing opportunities that merely look better.

Do you have a competitive advantage in the new field?

Do you need to add new assets for the new field? Have you fixed the weaknesses in your original field?

An effective strategy should…

fit the external environment, take every link in the value chain into account, match the company's capabilities, and be arranged and combined effectively;

be consistent and mutually coordinated externally, internally and in terms of momentum.

External consistency: able to adapt to the competitive environment and market changes

Internal consistency: resources complement each other rather than pulling against each other. Dynamic consistency: what to do first and what to do next — with rhythm and a clear game plan

Cultivate and strengthen your core competencies. If you run into problems on your main battlefield, running away from them or switching battlefields won't help — those problems will follow you like a shadow.

Strategy is: Do the right thing, do it in the right way!

Objective: what we want to achieve, and why we have the advantage to achieve it

Scope: where our battlefield is — set the boundaries! Actions: which ways and means we will use

A company's ownership affects its strategic decisions. Ownership influences a strategy viability.