Strategy: Compete to Win (Not Participate)

Being in business means you compete (in one or more markets) – this is a truism. But how many businesses compete to win, rather than just participate (in competition)?

This series of articles is my take on business strategy, which I have developed over time, including through studies at business school.

What is Strategy?

Michael Porter says, “Strategy is the set of long-term choices that an organisation makes to distinguish itself from competitors; Strategy is relative; and it defines a company’s distinctive approach to competing, and the competitive advantages on which it will be based.”

The term 'strategy' is not used and understood consistently, even by executives; some may see it about analysis and development, others may see it is an artefact to communicate and align the intent of senior leadership, while others may see it as the execution of a multi-year plan. A ‘Strategic Plan (Planning)’ is typically synonymous with an organisation’s strategy. However, I argue that, for the most part, these plans fail to critically identify how an organisation intends to uniquely ‘win’ in a competitive market. Instead, the Plans focus on aspirational and inspiring improvements and objectives. They are not necessarily ‘poor’ goals and targets, but this does not set the conditions for winning.

The difference might be subtle in some contexts, but the impact can be significant. Graham Kelly 'Don't Mistake Execution for Strategy (HBR 2020)’ wrote:

"The reason executive teams struggle with strategy is that…. they rush to execution… because they invariably arrive ready to address what they need to do… leaving executives with a hodgepodge of actions but no clear idea of where their organisation is heading or how it differs from competitors in the marketplace."

Before we write strategic or business plans, we need to set the conditions for winning, what I best analogise as a, ‘Playbook.’

A ‘Playbook,’ best described by its use by coaches and players in sports, articulates plays (or in the business, choices) enabling rapid decisions during gameplay, which is founded on a hypothesis about their relative positioning to their competitor(s) and how they win. Sports teams win by continually outperforming the competition, not simply by scoring a single point, or moving up and down a field.

Business strategy is about winning. Winning does not have to mean global domination, but it does need to be about building a sustainable and unique competitive advantage, a genuine value proposition that is relentlessly pursued. What are the critical areas (an organisation) needs to navigate with coherence to win? Whilst long-term objectives can define success for a team, they do not guarantee a business’ ability or understanding of how to win.

Consider winning in markets (with customers) being measured by an increase to the total value created (which allows us to leverage Customer Surplus) as created through a sustainable value proposition. Moreover, an increase in ‘winning,’ affords an ability to increase willingness to pay (represented in the diagram above). In future articles, we’ll dive deeper into this perspective.

Finally, I don’t think winning is about forcing others to lose, “the rising tide does lift all boats.” And so, I challenge you, don’t just compete – seek to win – across all dimensions: economically, socially, environmentally – it all counts – for everybody.”

Alok Patel (@alokdocpatel)

Alok is a, 'Future of Cities (Smart Cities, Emerging Technology and Infrastructure),' thought explorer. His gift and strength that allow him to formulate pragmatic vision(s) inspires managers to see greater potential to bring economic prosperity and positive social and environmental impact.

Alok is a positive and driven business executive who has developed his leadership skills over 15 years across the military (Australian Army), management consulting, real estate, and private equity/venture capital. He has developed successful strategies (from corporate initiatives, programs and projects) that create value through emerging technology investments and digital transformation. He is an out-of-the-box thinker whose creativity centres on business models that harness technology and the talent of motivated teams that yearn for greatness. He has worked across large capital assets transactions valued over AUD$4bn, led complex transactions and managed projects with net value worth over $100mil.