Day 17 in MIT Sloan Fellows Class 2023, Introduction to marketing and strategy -5
When you need a strategy?
Everyone assumes strategy is always important.
However, strategy is not always an important priority.
When your company constantly shows growth and forecasts further profit, you don't need to think about strategy. You need to stick to execution and standardization.
Strategy is truly necessary when business performance got plateaued. For example, the very beginning of startups and matured/commoditized business. Then, you need to choose a market to enter and our strategic resources carefully.
Create, Capture, and Deliver Value.
This framework is actually similar to Porter's five forces.
Creating value is thinking about the matter to the end-user and your customer.
Industry Rivalry is the current horizontal competitor. New entrants and substitutes are potential horizontal competitors. We resolve the competition with them by "Capture Value."
Then, Buyers and Suppliers are all about the players in different value chains. Deliver value framework gives us a proper resolution.
