1. 9 Steps of Business Strategy
BY: HARSH THAKKAR ON DECEMBER 6, 2011 NO COMMENT
ABC of Business Strategy
A- Always put top priority on strategic moves
Strategy means where we are , where we want to go, by what time and how will we do it.
. The strategic adversary is fascism… the fascism in us all, in our heads and in our
everyday behavior, the fascism that causes us to love power, to desire the very thing that
dominates and exploits us. Every move we make affects us as well as the competitor
thereby affecting the entire business environment
B- Be prompt to adapt to market conditions
The CEO of HP once passed a statement which meant that the biggest mistake one does is
doing the same thing what one did a year ago. The business environment is very dynamic.
What was applicable yesterday may not be applicable today and what is applicable today
may not be applicable tomorrow
C- Consider that attacking competitor’s weakness is better that attacking competitor’s
strength
The runner up firms often think of winning the battle of market share by imitating or
attacking competitor’s strength. It’s a mistake. Competitor’r weakness is your strength.
What a competitor fails to do is a niche pre-created
D- Don’t underestimate the reactions of rivals
Success is difficult but sustaining success is more difficult. The rival too waits for you to
make a mistake. Observe a pattern in rival’s movements. If possible, look at the situation
objectively. i.e. if X & Y are your rivals, how do they do business with one another
E- Ensure the strategy works in best of the circumstances
Test new strategy when everything appears to be going well. Experiment in best phase so
that you know it will work when required or not. Experiment and keep it aside for future
contingencies. This is because when you and your products are leading the market
anything you do becomes a fashion. Its assumed to be a benchmark by rivals. You can also
mislead them if required

2. F- Fair cutting in prices establishes cost advantage
Over the last two years, we have often talked about increase in purchasing power of
consumers. However, inflation and GDP growth rate in India are almost similar.
Considering global scenario, this figure matches the unemployment in USA. If cost wasn’t
that important than why is it that every recruiter wants the best talent at the lowest cost
possible?
G- Go for bold steps of differentiation
Does your product/service have a distinct identity? Is it unique? How easily it can be
copied? Is the differentiation adding too much cost. E.g. Ferrari gives a mileage of only
5kmpl but it’s a differentiated product for a distinct class. Thus, differentiation matters
considering what the buyer needs and who is buying it
H- Ho-Hum strategy to be avoided
Ho-Hum stands for mental weariness. For instance, you are a market leader. A new entrant
hits the market and is appreciated for its cost cutting and differentiation. E.g. Micromax
came with a Rs. 2000 mobile phone specially for fishermen being waterproof, the so called
market leaders lost their share as they reacted too late to their competitor’s initiative
I- Invest for sustainable competitive advantage
When competitive advantage gets copied its no longer a competitive advantage. Hence
keep innovating, invest aggressively in R&D in order to sustain your success. Also, if you
have innovative products ready, release them at regular intervals as this will build a
reputation of yours in the market that you innovate regularly. Also, this reduces the threat
of rival copying what you have done.
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