Crafting a competitive strategy, Pt 1

DEBATES on competitive strategy take centre stage in every company that wants to excel and to grow profitably and exponentially. A plethora of scholars come to the agreement that there are components that make a good strategy.

The advent of disruptive technologies has changed the definition of strategy and how fast each strategy must be implemented. Technology brings a new spin, speed and agility to the extent that what was created yesterday might wake up to be outmoded and irrelevant.

That needs more than just a mere strategy; but a cutthroat leader who knows how to analyse, create and implement a competitive strategy. This article takes a reflective and analytical approach to competitive strategy. It goes beyond definitions, but gives practical examples and recommends disruptive thought lines in crafting a competitive strategy.

Competition is not a new thing; the only difference is now it is accelerated. As Peter Drucker once said we live in an era of 3Cs — accelerated change, tremendous competition and overwhelming complexity. It is no longer enough to keep the head above the water, but the company must have tools, techniques, tactics, tenacity and temerity to be competitive. That takes a competitive strategy. The word competitive means spirited, aggressive, and ready for action. On the other hand, strategy means a plan, a ploy, a pattern, a process, a position and a perspective (Mintzberg, 1987). A competitive strategy is an aggressive and well-calculated manoeuvre. As Sun Tzu, in the book Art of War says we must plan secretly and move surreptitiously. According to Henderson (1987), strategy is a deliberate search for a plan of action that will develop a business’ competitive advantage and compound it. For any company, the search is an iterative process that begins with recognition of where you are and what you have now.

The word strategy is a war term with its etymological origins from the Greek word strategos meaning an army leader or military general.

In war, the army is bloodthirsty and any slight mistake or lapse on the side of the commanding general leads to cataclysmic consequences. So, that should be the case in business.

The leader must bring deft, depth and dexterity to thrive in the market and that is brought by crafting a competitive strategy.

Crafting a competitive strategy takes imagination. Imagination is also crucial in face of fastchanging market forces. Hence Albert Einstein once said: “Imagination is everything. It is the preview of life’s coming attractions.” Furthermore, Henderson ibid said: “Evolution determines who survives and who crowded out- in business just as surely as in the jungle.”

There are many approaches to crafting a competitive strategy and the first approach is the chief architect approach. With this approach, one person, who is usually the owner assumes the role of a chief strategist and entrepreneur. S/he shapes most pieces of the strategy (Briankart, 2018). The chief architect approach does not mean the founder does all the thinking, gathering of data, analysis and policy formulation, but he can employ others to do that for the organisation.