I am frequently asked about the most important factors that shape my views on strategy. And to that question, my answer is always simple. I am driven by three fundamental beliefs:
1. Customers always choose the best available
From a strategy viewpoint, “the best” is defined by each customer. It could be price, availability, specifications, customer service, or some other variable. Whatever the utility curve the customer is using to determine their preference, they will choose the best they can afford, from what’s available, wherever they can find it. Your strategy must be to deliver the best.
2. The best is always changing
The best changes over time because customer preferences change, what competitors offer changes, or because what companies provide to their customer changes. And, if your strategy is to deliver the best, then you must be prepared to deliver to these changing customer preferences.
3. Only companies capable of change are sustainable
The inevitable conclusion is that companies strategy must change, and the companies themselves must change. And, they must change faster than the customers are changing in order to stay relevant. Does your strategy do that?