Everyone talks about strategy, but could you define it?

Here’s my favorite version.

“Strategy describes how a company creates a unique and valuable position through a set of differentiating actions.” – Michael Porter, quoted in 3HAG Way by Shannon Susko

Let’s break that down.

First – Unique

This last week I was approached by three people selling marketing services. Two of them gave me a list of skills they have. The third just told me they work with companies of all sizes.

None of them could tell me why I should work with them specifically. Do you see how this could be a problem for someone selling marketing?

It’s really darn hard to be unique by skill set. Much easier to be unique by the characteristics of the client or customer you serve.

For business to business that could mean

• industry
• company size
• geographic area

For business to customer it could mean

• customer age
• sex or gender
• financial status
• social interests
• family status
• food preferences
• you get the idea

Second – Valuable

Valuable is in the eye of the beholder. You must know whose eye is judging. Back to the argument that you need to know your customer. What is valuable to them?

Third – Set of differentiating actions

How do you get in front of your customer in a way that

• gets their attention because it is different
• communicates your value to them
• makes it easy for them to buy

Once they buy, how do you consistently deliver value to your customers?

• how do you deliver the first time
• how do you keep delivering
• how do you demonstrate through your actions that you value your customer

And that, folks, is how I define strategy.