Strategy

We explain what a strategy is, what types exist and in what areas it is used. Strategy and tactics. Strategy and competitiveness.

What is a strategy?

the word strategy comes from Greek strategywhich means 'art of the troop leader' or 'craft of the general'. Formerly, the term was used to refer to the set of skills that a general had to use (siege techniques, movement of troops, distribution of weapons), aimed at achieving a military objective. Today, strategy is understood a general plan of action to achieve a goal.

A strategy involves, among other aspects:

• Set goals.
• Determine actions to achieve those objectives.
• Coordinate and manage resources to execute actions.
• Evaluate the risks and benefits of the decisions made based on the objectives.

In the business field, the strategy refers to long-term company objectives and the policies necessary to meet those objectives, including how it will compete in the market.

The concept of strategy can be applied to virtually any area from love conquest to marketing, as long as it involves the implementation of a plan, designed to take the greatest possible advantage of the given conditions and resources.

See also: Strategic planning

Types of strategy

Strategies can be classified according to different criteria, such as their scope of application (military, business, advertising, sports strategies, etc.), their positioning against the adversary (offensive, defensive, mixed strategies) or their scope (general and specific).

Depending on their scope of application, the following types of strategies are recognized, among others:

• military strategy. It is the planning of military actions and resources in order to ensure victory over enemy forces or achieve certain objectives.
• Business strategy. It is the general plan of actions aimed at establishing the way in which a company intervenes in a market, in order to obtain an advantage over the competition and achieve the purposes expressed in its mission.
• Teaching and learning strategy. It is the set of procedures and techniques used with the objective of promoting learning.
• game strategy. It is a rule or plan of action used by a player to respond to possible circumstances at each stage of the game. Typically in a game, each player has a possible set of strategies for choosing which moves to make.

In the business field, a distinction is made, in turn, between:

• Functional strategies. They are those related to specific objectives of a business or a department within an organization and that determine the tasks that must be undertaken to achieve those objectives.
• Operational strategies. They focus on the daily and continuous activities of the company, that is, on its procedures.
• Organizational strategies. They are focused on the organization of the company, that is, its hierarchy, its subdivisions, its internal distribution, etc.
• Advertising strategies. They refer to advertising and marketing and everything related to the public image of the organization.

Strategy Examples

Some strategy examples are:

• In order to increase its sales, a company carries out the strategy of launching a new line of products on the market.
• Faced with a very strong competitor, a company makes a strategic alliance with another company, with the aim of maintaining its market share and retaining its customers.
• With the objective of defeating a large army, the general in command of a small troop decides, instead of direct confrontation, the strategy of attacking the enemy's weapons depots and the communication routes through which he receives supplies.
• A saver applies the strategy of diversifying his investments, placing part in a fixed term, another in shares of consolidated companies and others in real estate developments; In this way, it reduces the risks of loss of the invested capital.
• During a championship, the technical director of a soccer team decides that the best strategy for a match is a defensive game, which prevents the opposing team from scoring goals, so that it does not advance in the standings.
• At the beginning of a chess game, a player plays with the strategy of controlling the center of the board, in order to limit the opponent's movements and have more squares to move his own pieces.

Tactics and strategy

These two concepts are often used interchangeably, but they do not mean the same thing. The strategy consists of a general plan, designed in order to achieve an objective. In this sense, it can be said that it is part of an overall vision.

On the other hand, tactics are a specific movement or action that is applied in a specific situation to obtain a specific result. That is, while Strategies are comprehensive and general, tactics are singular and specific.

Usually, A strategy includes using certain types of tactics instead of others. For example, in order to increase its sales, a company plans the strategy of expanding its points of sale. Based on this, various tactics are evaluated: placing new own stores, establishing alliances with commercial chains, enabling sales platforms online or streamline operations carried out through that channel, etc.

The differences between tactics and strategy can be summarized as follows:

• Tactics are subordinate to strategy, that is, without strategy tactics have no meaning.
• Tactics look for methods through which strategy can be applied. Strategy, on the other hand, is a coherent set of actions designed for an organization to achieve an advantageous position.
• In an organization, tactics are usually formulated by middle management, while strategy is formulated by senior management.
• Tactics generally involve less risk compared to strategy, because they are inherently more limited than the strategy.
• Tactics are short-lived; The strategies are long term.
• Tactics often change as circumstances change, but strategy may remain unchanged.
• Tactics are developed to face the present, unlike strategy, designed for the future.

Continue in: Tactics

Strategy and competitiveness

The competitiveness of an organization or a team depends on your ability to successfully confront your rivals. It is said that a company, an institution or a football team is competitive when it offers its opponents a challenge, that is, when they are not easy to beat. And this often involves the management of strategies.

The most common thing is that an initiative lacking a strategy will not be very competitive, while one with good strategies and arduous planning will be.

At the same time, in any organization the development of an appropriate strategy requires prior identification of its possible competitive advantages that is, those characteristics that place it above other similar organizations.

The identification of competitive advantages is carried out taking into account factors such as the products or services that the organization sells or offers, the resources it has, the market or area in which it operates and possible and real competitors.

From the analysis of these factors it will be possible to formulate a strategy that reflects both the mission and vision of the organization as well as its ability to be competitive.

References

• “Strategy”, on Wikipedia.
• “What is a strategy and how it is developed”, in Emprendices.
• “What is a strategy?”, in Community Tool Box.
• “Strategy”, in Business Dictionary.
• “Strategy vs. Tactics”, on Farnam Street.
• “5 myths about strategy”, in Harvard Business Review.
• “Difference Between Tactics and Strategy”, in Key Differences.