Many have given a definition about business strategy. But what is business strategy? The Porter's definition is focused on positioning (WHERE) but I think is not enough as this approach is not taking into consideration (HOW) and (WHEN). How has a company achieved this competitive position? When has a company implemented this strategy? I think the space, time and manner are very essential to define strategy. What is your perspective?
Some good material on the topic and related aspects is available in detail on http://en.wikipedia.org/wiki/Strategic_management; I recommend to study that material.
I can recommend the book 'Good Strategy, Bad Strategy' by Richard Rumelt which emphasises that strategy without concrete (plans for) action is no (proper) strategy, hence tactics (=action?) will play a role or rather be part of strategy
I agree. HOW and WHEN are of utmost importance.
Take a company for example with growth as strategic target, e.g. grow by 25% within the next fiscal year. This company needs to decide upon the strategic lever(s), i.e. HOW to achieve this target: organic growth or M&A. And especially for M&A timing - WHEN - is key for success.
Porters definition is adequate in defining direction and competitiveness. There is a diference between business strategy and business plan in context of business management. Hence a good strategic plan will fuse both operational plan (when, how) and competive postioning (where) taking into acount its core compentencies (why)
The 40 years strong success of Porter's framework was due to simplicity to understand and to apply. Furthermore it was easy to teach and its forecasts were good in the manufacturing world of yesterday. In the globalized complex world of today the framework may be difficult to apply. It is based on competition, whose definition is changing. The world itself is fast changing and the Porter's framework is static, being so difficult to match in a continuos changing environment. New "forces" have been emerged, as globalization and technology effects.
We need to a new masterpiece, as Michael Porter's framework is, more fit to the new entrepreneurial society.
Porter wrote na interesting article about the dynamic of strategy for the Strategic Management Journal in 1991. I had the chance to ask about that to Porter recently. You may watch his answer at http://www.youtube.com/watch?v=lhR-qsY42Ck&list=UUwjfLrtsBZFuxR96fjUTQUQ&index=1
The challenge with Porter's framework is not that it is no longer relevant, but that it only looks at strategy from one perspective "positioning", making organisations largely subject to the forces at play within their industries, more in line with environmental determinism. There is clearly more to strategy than only responding to the environment and positioning yourself for success.
I suggest to look at Porter's own answer about that at http://www.youtube.com/watch?v=lhR-qsY42Ck
