The Best Book on Strategy – This is it!
When we think about business strategy books, what comes to our mind first are books written by Ivy League strategy professors. These books are usually thick books that give you difficult-to-understand (and implement too!) concepts.
But the best book on business strategy, in my opinion, is Trout on Strategy, a small book written by legendary marketing strategist Jack Trout.
I have found that although it is written more than 15 years ago, everything that Trout discusses about strategy in this book is far more relevant in the ‘age of disruption’ that we are living in.
Let’s revisit some of the key concepts he talks about in this book.
Strategy is about survival
Because of the explosion of choice, consumers have more choice than ever. So there are many alternative products that they can choose.
Choice has multiplied significantly after more than a decade from Trout writing this. Do a search for a product category on Amazon, or visit a supermarket, you will experience real choice explosion.
In this scenario, you play not to win, you play to survive, then naturally win as well. If you commit one ‘survival’ mistake, competitors will take all you have.
Strategy is about being different
In a world where almost all companies can match competition in general product attributes, being different is important. In Trout’s words, companies with powerful leadership positions “own” a category. The companies that own categories hold indisputable leadership positions in their respective categories and are perceived by customers as representing or defining the category itself.
Who owns the web search category? Who owns fast cars? Who owns electric cars? Who owns PC operating system? Who owns cola? Who owns social network? Who owns online retail in the US? And in China? The answers are obvious, right?
Strategy is about competition
Strategy is not about what you can/will do, it is about what your competition is doing. We are living in a world where everyone is after everyone’s business. Trout’s advice: avoid the strengths of your competitors, instead exploit their weaknesses.
Microsoft was never strong in mobile OS, and Google exploited it, and is the undisputable leader now.
Facebook is strong in social network, and despite its technology prowess, Google was never able to pose a serious challenge.
It’s not easy to dethrone Maruti Suzuki in small cars in India. Ask Tata and Hyundai!
Strategy is about simplicity
Trout is right in saying that simplicity has no appeal in strategy. Business executives love complex strategies that are difficult to implement successfully in real life. But in real life, simple ideas are the most powerful. To adapt from Eastern philosophy, simplicity is the ultimate sophistication.
Do not fall for buzzword bingo when it comes to strategy. Core competency is “what you do well”, and paradigm — whether it shifts or does not shift — means “how you do things.”
To conclude…
What Trout says about simplicity is true when it comes to his book. It is a simple, small book filled with wisdom, and as a result, does not have much appeal to those love “complex” strategy books that stimulate their neurons.
But the point is, ladies and gentlemen, successful strategy is all about simplicity, and will continue to be!
Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual.