5 Elemets Of Strategy

5 FIVE ELEMENTS OF STRATEGY

* A strategy has five elements, provide answers to five questions:
* Arenas: where will be active
* Vehicles: how will we get there
*Differentiators: how will we win in the marketplace
* Staging: what will be our speed and sequence of moves
* Economic logic: how will we obtain our returns

* Porter’s five-forcers analysistend to think of strategy as a matter of selecting industries and segments within them. problem
* Executives who dwell on “co-opetition” see their world as a set of choices about dealing withadversaries and allies.
* CEOs must have a strategy
* A central, integrated, externally oriented concept of how business will achieve its objectives.
* Without strategy resources areeasily wasted on piecemeal.
* A strategy consist of an integrated set of choices.

Elements of strategy
* ARENAS:
* Where the business will be active.
* Be as specific aspossible about products and markets.

* VEHICLES:
* How we get there.
* Expansion modes

* DIFFERENTIATORS:
* How to attract customers.
* Winning market
*Need to be unique, service, price, product image and styling.

* STAGING:
* Speed and sequence of major moves to take in order to heighten success.
* Steps of the plan
*Drive by many factors (resources, urgency, achievement of credibility, early wins

* ECONOMIC LOGIC
* Idea of how profits will be generated (above firm’s cost of capital).
* Offeringto costumers a difficult-to-match product. way to obtain premium prices
* Rooted in the firms’ fundamental and relatively enduring capabilities.

The imperative of strategic comprehensiveness* Five elements call not only for choice, but also for preparation and investment.\
* Elements require certain capabilities that cannot be generated spontaneously.
* Elements must...