Good Strategy Bad Strategy Summary

Good Strategy discovers critical challenges then designs a coordinated plan of focused actions to resolve.

In 2 Minutes

A good strategy is not about vision or goals. It is a carefully researched and well designed action plan designed to meet a challenge. However, leaders often substitute targets, exhortations and slogans for strategy. Bad strategy, a form of magical thinking, contains fluff, dodges problems, mistakes goals for strategy and sets unrealistic goals.

  • Good strategy focuses on critical issues and decides how to address them.
  • It requires research and analysis, hard choices, decisive planning, and action.
  • Identifying and leveraging your competitive advantages are the first steps in strategizing.

A diagnosis a guiding policy” and a set of coherent actions” form the kernel” of a good strategy. Master strategists” design their own novel approaches to solving a problem; they don’t choose from standard options. Strategic objectives should always be practical and feasible. Good strategy represents a hypothesis, an educated guess, about how to increase your business in the most productive way.

Good Strategy Bad Strategy Summary

Our Strategy? To Be the Best!

A graphics firm asked author and strategic management consultant Richard Rumelt for his help in defining its strategy.

What is a Blue Ocean Strategy Shift

Blue Ocean Shift is innovation framework to create new market categories where there is no competition. This new submarket is created by discovering new opportunities that balance the cost of production with customer value.

In a nutshell, the book says that when people think about strategy, they usually think they have to compete with either higher value or lower price. The Blue Ocean Strategy suggests that there is a 3rd option, which is creating a new market category when you are the only player (at least for a while).

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1. Blue Ocean Market Creation Theory

Let’s start by talking a little bit about how markets are created. The general assumption is that a new market is created when a new idea arises andit’sa better idea of those currently in the market.

The Blue Ocean Shift proposes that there are 3 more specific strategies to create a new market — or at least a new category within a market.

  1. Disruptive Innovation: Creative Destruction, a new product completely replaces a previous one.
  2. Non-Disruptive Innovation: A new product is created,