“The essence of strategy is easy to define: it involves making wise choices about where and how to compete, so companies can counteract the competitive forces that inexorably deplete profits.”
VENTURES AFRICA – The above quote was the opening quote from the McKinsey Quarterly report for Q4-2013. The focus was on ‘Strategy to beat the odds’. I would be sharing a few thoughts suited for entrepreneurs from the report today. Since, entrepreneurs are expected to be the ‘Chief Strategist’ of their enterprise, they can glean valuable wisdom in the bid to review year 2013 and in preparation for a prosperous new business year in 2014.
At first blush, “beating the market” might sound like an expression better suited to investing or financial management than to business strategy. When you think about it, though, overcoming the profit depleting effects of market forces is the essence of good strategy – it separates winners from losers, headline makers from also-rans.
The essence of strategy is easy to define: it involves making wise choices about where and how to compete, so companies can counteract the competitive forces that inexorably deplete profits. By this definition, perhaps 3 to 5 percent of the world’s companies have extraordinarily successful strategies, and a similarly small proportion have colossally poor ones. A great many operate in the dynamic middle ground, neither quite mastering, nor yet being overcome by, the market forces swirling around them.
The above is an excerpt from my post on Ventures-Africa.com titled “Entrepreneurs: Strategy To Beat The Odds”. The post was published over the weekend and I had to share with you all today. Click here to read full post…