Forums: Discussions for entrepreneurs and small business.

Sure, that`s one way of looking at it. But tactics without a good strategy are just a bunch of actions that may or may not lead to any measurable result. Strategy isn`t essential ... but it`s very helpful.

Five Forces Framework for Strategy. Michael Porter is brilliant. His now classic take on strategy is world famous for good reason. The five forces framework [ you can add more if you like ] and his generic strategies are super useful and make business a lot less difficult in my opinion.

Equally brilliant or possibly more brilliant:

Cristian Mitreanu`s Work

In fact just about all of Cristian Mitreanu`s work is exceedingly brilliant even if it`s a bit complex. His strategy frameworks have changed the way I look at the business world ... he is definitely a really important thinker in this area.

:-) And isn`t that exactly why you proposed there be a forum devoted to strategy issues? We have so many entrepreneurs posting "tactical questions," which end up being......just a bunch of actions that may or may not lead to any kind of measurable result.

Cool site, that Cristian Mitreanu one. What I see is a connection between the "Life Plan" step in starting up a business, and the "quest for a successful existence."

Mark Twain wrote a lot about how nobody ever does anything without it having a self-serving purpose. Others, of course, had written at length on the same topic, but I like Twain. :-) That`s an attempt to formulate some basic, universal rules of life. It`s like developing a philosophy.

We all seem to ask why we`re alive, what`s the meaning of "it" all. Mitreneau seems to be going all the way down to this basic level to develop a theory on strategy.

Yes, his intellect is razor sharp. Fundamentally brilliant work.

Great analogy, on the going to work. In particular, if I use the same tactics as someone else, then I`ll end up at THEIR place of work...not mine!

As for understanding something as a strategy or tactic, let`s also use Flash! as an example. How many people use the applet as a tactic, rather than a strategy?

When you put some sort of Flash! display on the home page, the question becomes "Why are you using this?" If the answer is that everyone else is, or it`s cool, or because you like it, that`s not even a tactical decision. It`s just following the herd.

What would be the strategic value of Flash!, and what would be an example of its tactical value?

The value of any strategy or tactic is diluted when any number of organizations use the same strategy. I am not sure about the mathematical rule but I am sure that the "power" of any strategy is inverse to its proliferation. Blue Ocean Strategy - a book I do not like - does raise a key point about the futility of similar value curves. However this is not any big find - Porter et. al. wrote about this decades before the Blue Ocean authors.

My interest in strategy - as noted by others in the thread - is that tactical soup is a waste of time, money, energy, etc. In addition, given enough time customers become "resistant" to most tactics. People have literally learned how to tune out advertisements even if they don`t own a Tivo.

Tactical soup or "business operation as a bag of tactics" is so wasteful. It`s very hard to give the right advice to someone who presents a purely tactical question unless you have some idea about their strategy.

Here`s another analogy, from the music business.

One band plays original material, technically not all that well, and creates an evening of interesting entertainment. That`s a strategy---to write originals, play them on stage, and hopefully get money.

Another band comes along, copies the first band`s songs, but does them technically brilliantly. That`s a tactic---to apply technique instead of creativity.

The second band will have some modest success, but never become a global or cultural icon. They`re not creating anything, just engineering some notes.

Strategy is about developing new ideas. Tactics is about engineering some already-present idea.

I think that it is important to understand the objectives of the strategy. From what I had read, the basic goals of a strategy is to

1) Win customer`s preference

2)Create sustainable competitive advantage

3)Maximize owners` returns 

Your strategy is highly dependent on your company. It varies widely.

I`d say that there`s the philosophic discussion of the meaning of strategy as a concept. Then there`s the *implementation* of strategic planning, wherein someone tries to figure out *a particular* strategy that applies to their business.

It`s unfortunate that so few people seem interested in understanding strategy, at least based on anecdotal evidence so far. But yes, a particular strategy is directly associated with your own industry, your own field, and your life goals.