The biggest challenge we face today is that the environment is constantly changing.

In the context of the superimposed pandemic, international trade and political strife, we are also facing a new environment and a new normal in the new global economic situation, where companies will encounter new challenges and opportunities for their future development as well.

The environment is constantly changing, creating enormous challenges for companies to develop their strategies. What we should think about today is what remains the same. What is the strategy that should be adhered to? In this article, I will share some ideas on this subject. Please click here to view.

Corporate strategy should be developed based on what remains the same to have greater certainty in dealing with more uncertain risks.

1 Good business strategy requires a precise core category positioning

The starting point of positioning is mindfulness and cognition. Positioning opened up a whole new era in human business history - the era of cognition - and therefore took the lead in revolutionizing the idea that the ultimate battleground of business competition is customers' minds. Before the birth of positioning, all business strategies were formulated based on "facts". We often say that cognition is fact, and even cognition is more significant than fact.

By positioning yourself for innovation in your core category, even if you don't have super technology, you can still see a massive opportunity for innovation in your class from a category perspective.

From a mindset perspective, a leader in one category will have a significantly weaker impact when it moves to another type. So even without super technology, the vast opportunity to innovate a variety can be seen from a category perspective from a positioning perspective.

Last year Reese & Co. released a study on category innovation for sustainable growth of listed companies in China, which pointed out that the 49 companies with precise data on new category revenue had completed 62 category innovations that brought in at least?$2 trillion?in revenue in 2020. The new category business accounted for more than 72% of the total revenue ($2.9 trillion) of these 49 companies, so category innovation is significant.

In the mobile internet era, information is more fragmented and dusty, and algorithms influence, leading to an information cocoon (information silo) where everyone thinks they see the whole world.

But different people will receive additional information for the exact hot search. The algorithm will influence us, but the mental model will remain the same.

So, in this day and age, it is still vital, and more importantly, to study the consumer's mental perceptions.

The positioning provides an external perspective to examine the strategic starting point and sustainable competitive advantage of a company from the perspective of creating differentiated value for customers, combined with the laws of brain functioning, the laws of customer mind and business models, and then further develop an effective corporate strategy.

2. The strategic issue of how to sustain growth

One core strategic issue for an enterprise is how to grow sustainably. It is only through sustained growth that all other problems can be solved. Mr Drucker, the management guru, said that "there are only two functions of a business: innovation and customer creation". From the point of view of enterprise development: only by constantly innovating and creating customers can an enterprise continue to grow and live.

Therefore, the relationship between positioning and business operation is: in different business cycles, consistently doing an excellent job in the core category of innovation can help solve the strategic issues of sustainable growth of enterprises.