Saturday, May 27, 2017

Role of Strategy in Creating a Successful Business

“Planning for success is the first step towards being successful”
“Finding out the right Strategy is the key to effective planning”

The above two quotes define the crux of the two articles “The Real Value of Strategic Planning” and “Your Strategy needs a Strategy”.

MIT Sloan Management Review- “The Real Value of Strategic Planning” describes the strategic process followed by various organization around the globe. Emphasizing that effective strategic planning is the key to success of the organization. The decision makers should arrive at the strategic decisions based on the sound knowledge of the business they are a part of and should make reasonable and informed assumptions on which they must agree upon. It focuses on creating prepared minds which can act wisely and revise their strategy per the scenario to benefit the organization and mitigate risks if any.

“Your Strategy needs a strategy” focuses on creating a strategy that caters specific demands of business. A business may have different business units having different parameters for strategy development. These parameters may have different nature some may be volatile some may not fluctuate too often and are predictable. These parameters define the nature of the business unit; they should be kept in mind for making the successful strategies for different units instead of developing a common strategy for the business.

Many businesses have flourished realizing the importance of the above-mentioned concepts. One such company is Apple which has ruled the smartphone industry over decades based on their focus on the strategic decision at the right time and willingness to experiment and make strategies per the situations.

Steve Jobs realized the importance of the value proposition i.e. a product which can offer unanticipated features has a higher value in the market than the products with the similar features. Based on this devised a strategy to build a brand that can stand out and can be gauged upon the value it offers. Consequently, Apple launched iPhone 3 in 2007 with features like Multi-Touch Screen, which was cutting edge at that time and was not offered by any other company in the market. [1]

This was visionary (it shaped the future of the smartphones from using the basic keypad to transition into using a touchscreen) as it revolutionized the smartphone industry and created a new market of smartphones altogether.
The overall strategy used by Apple is adaptive as the Smartphone industry is ever changing with the technological changes such as the introduction of the Android Operating System becoming a huge success among the device users and manufacturers, Apple is constantly adapting to this competitive market by offering great software, every evolving and improving design, creating powerful ecosystem of the content, apps, and services.
These strategies help Apple to be the market leader holding 91 percent of the global smartphone profits. [2]


References:
[1]  Sweney, M. (2007). [online] theguardian. Available at: http://www.theguardian.com [Accessed 3 Feb. 2017].

[2] http://www.cnbc.com/2016/11/23/apple-captures-record-91-percent-of-global-smartphone-profits-research.html

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