Strategy S2 | Notion

Strategy is a long term roadmap incorporating a number of activities to work towards the overall aim of a business.

Strategic positioning

split into potential (what business can do right now) and ambition (what it wants to do)

Strategic positioning refers to the process of determining where a business stands in relation to its competitors and target market. It involves identifying the unique value proposition and competitive advantage that sets the business apart. This can be split into two components: potential, which focuses on what the business can do currently to position itself effectively, and ambition, which outlines the future goals and aspirations of the business in terms of positioning.

Assess … using:

Macro Environment: PESTLE, scenario analysis

Industry: Porters five forces, value net, industry life cycle, SWOT

Competitors: porters four corners analysis, war gaming

Internal: SWOT

Resources & Capabilities

can be split into physical, financial and human
resources are easily replicable by competitors whereas capabilities are not
it is being able to effectively utilise resources (thus build capabilities) that creates and sustains competitive advantage and long-term survival
not using these capabilities and resources effectively = weakness for the business

Resources (What an organisation has)		Capabilities (what an organisation does well)
Machines, buildings, raw material, patents, databases, computer systems	Physical	Ways of achieving utilisation of a plant, efficiency, productivity, flexibility, marketing
Balance sheet, cash flow. Suppliers of funds	Financial	Ability to raise funds and manage cash flows, debtors, creditors etc
Managers, employees, partners, suppliers, customers	Human	How people gain and use experience, skills, knowledge, build relationships, motivate others and innovate