Simplification Of Strategy

Good day,

Strategy in business can be simplified to the basic principles of economics. Think of supply and demand, and economies of scale. 

If you can provide a product or service better or cheaper than others, you have an advantage.

 If your business benefits from economies of scale, meaning the cost per unit decreases as the volume of output increases, you have another powerful advantage.

For instance, if you find that you can produce goods more efficiently as you scale up, you might decide to invest in increasing your output. 

Conversely, if you see that your customers have many alternative suppliers, you might focus on differentiating your product or improving your service to increase demand. 

The key is to cut through the noise and focus on these basic economic principles. This way, you simplify your strategy, making it easier to formulate, communicate, and implement.

Adapted from "Competition Demystified: A Radically Simplified Approach to Business Strategy" by Bruce C. Greenwald