Forums: Discussions for entrepreneurs and small business.

Here is another interesting strategy article from Monitor Consulting. It`s a bit dry but contains some very interesting ideas about competitive strategy. This article contains essential information for anyone who is opening a business or thinking about adding a new product or service.

Geometry of Competition from Monitor Consulting

Monitor Group Web Site

[p.s. CookieMonster isn`t affiliated with Monitor Consulting. ]

I just finished working on a presentation involving IT strategy for the next 5 years, for a lot of the world-level enterprises. I did it as a contractor on their visuals, but got a chance to read what they`re saying.

Here`s a basic definition of strategy as they define it:

• Strategy defines the direction of the enterprise, should include the sources of advantage of the enterprise, and should be specific enough to drive focus and trade-offs.

The bold is mine. That`s the main difference between a strategy and tactic; that you`re looking for an "overall advantage" you can build upon with your company.

A tactic is a momentary advantage in changing circumstances. It`s an opportunity, or something to do right now, but it`s not a long-term advantage you have.

Strategic planning is to look at what`s a current advantage, then extrapolate a year or more into the future. Will your advantage still be there? What will the rest of the world be doing while you`re busy selling on the basis of your current advantage?