Strategy formulation is the process of determining
appropriate courses of action for achieving organizational objectives and
thereby accomplishing organizational purpose.
2 Business Growth Strategies
Blue Ocean vs. Red Ocean Strategy
The strategy you formulate should reflect
lead to fulfillment of your organizational
vision, and result
in reaching organizational objectives.
Articulate Your Vision
Special tools you can use to assist you
in formulating strategies include
critical question analysis,
SWOT analysis, business
portfolio analysis, Porter's
model for industry analysis, and
resource-based model. These
five strategy development tools are related but distinct. You should use the
tool or combination of tools that is most appropriate for your organization
and business environment.
Sustainable competitive advantage is the prolonged benefit of
implementing some unique value-creating strategy based on unique
combination of internal organizational
that cannot be replicated by competitors...
Smart Business Architect
Inspirational Business Plan:
Operational Plan: "We don’t
have a traditional strategy process,
planning process like you’d find in
traditional technical companies. It allows Google to
innovate very, very
quickly, which I think is a real strength of the company."
Blue Ocean Strategy:
Blue Ocean Strategy is about
The six principles drive the successful
execution of Blue Ocean Strategy.
These principles attenuate the six risks...
Market Leadership Strategies
The market leader is dominant in its industry
and has substantial market share. If you want to lead the market, you must
be the industry leader in developing new
business models and new products
or services. You must be on the
cutting edge of
new technologies and innovative
business processes. Your
customer value proposition must offer a superior solution to a
customers' problem, and your product must be well
The innovation portfolio provides
visibility that allows your firm pace the introduction of new products and
services. You should balance the introduction of
revolutionary products with
incremental improvements in others so as to maintain a steady flow. By
having a comprehensive view of your initiatives over time, you can avoid
either overwhelming or underwhelming the marketplace...
Case in Point
Valley Firms: Stretching Innovation Portfolio
Growth, Christopher Meyer
Balance between revolutionary and
evolutionary initiatives. First, Silicon Valley companies assess the
overall balance between
revolutionary and evolutionary projects. The ultimate arbitrator of
portfolio stretch if the innovation leaders’ judgment, experience,
intuition, and luck...
Case in Point
"We run the company by
questions, not by answers," says Eric Schmidt, the CEO of Google.
strategy process we've so far formulated 30 questions that we have to
answer. I'll give you an example: we have a lot of cash. What should we do
with the cash? Another example of a question that we are debating right now
is: we have this amazing product called AdSense for content, where we're
monetizing the Web. If you're a publisher we run our ads against your
content. It's phenomenal. How do we make that product produce better
content, not just lots of content? An interesting question. How we do make
sure that in the area of video, that high-quality video is also monetized?
What are the next big breakthroughs in search?"
is about challenging existing industry methods of
creating customer value in order to meet newly
emerging customer needs, add additional value, and
create new markets and new customer
groups for the sponsoring company...
Strategies for Leading Breakthroughs
So what separates
extraordinary leaders from proponents of the status quo?
They break the rules. Except, not in an arbitrary or
When you look at examples of extraordinary
leadership, like the Founding Fathers of the United States or
Jack Welch of
GE, certain practices or principles become apparent. To
start, there is a
declaration of what the future will be. There is also a
purpose, something to stand for. And finally, there is a clearly
3Ss of Winning in Business
7 Dimensions of Strategic
The Strategic Innovation framework weaves together seven dimensions to
produce a range of outcomes that drive growth.
Organizational Readiness may drive or
inhibit its ability to act upon and
strategies, and to successfully manage operational, political,
cultural and financial demands that will follow...