What is Strategy? It’s a Lot Simpler Than You Think - Deepstash
What is Strategy? It’s a Lot Simpler Than You Think

What is Strategy? It’s a Lot Simpler Than You Think

Curated from: Harvard Business Review

Ideas, facts & insights covering these topics:

5 ideas

·

1.04K reads

9

Explore the World's Best Ideas

Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.

Strategy is simple

Strategy is simple

A strategy is a plan to create value. Value for customers, value for employees, value for suppliers. It is planning for the future.

Strategy doesn't begin with a focus on profit. Financials, profitability, return on investor capital is the result of strategy. It is not the starting point.

30

445 reads

Value explained

Value explained

Value is the difference between a willingness to pay and a willingness to sell. This can be shown with a value stick.

  • At the top, we have a willingness to pay.
  • At the bottom,  we have a willingness to sell.

The difference between the two is the value the company creates.

The value is split in three ways:

  • Some go to customers. (The difference between willingness to pay and price.)
  • Some go to employees (the difference between willingness to sell and compensation.)
  • The middle wedge is the margin of the company.

31

198 reads

How to create more value

We can create more value in two ways.

  1. By increasing the willingness to pay. It describes the customers. It's the most a customer would ever pay for a product or service. Value can be created by focusing on "customer delight".
  2. By decreasing the willingness to sell. It is the least amount of compensation an employee would accept and still work for this particular company. ]t is a measure of the quality between what someone is looking for in work and what a company can offer.

27

140 reads

Ways to raise willingness to pay

Ways to raise willingness to pay

  • Product quality. The higher the quality, the more appealing the service, the higher the willingness to pay.
  • Product complements. A compliment is a product or service that supports willingness to pay. For example, razor and razor blades, or printer and printer cartridges.
  • Network effects. The more popular the product, the more widespread its adoption, the greater my willingness to pay.

27

128 reads

How to lower willingness to sell

Two ways to be more attractive in the market for talent:

  1. Pay more money. When you pay more money, you will be more competitive in the marketplace for talent.
  2. Make the job a better job. Create more attractive working conditions, for example, better training plan, more generous promotion rules, working some days from home.

27

133 reads

IDEAS CURATED BY

michnels

Horticultural therapist

Michael Nelson's ideas are part of this journey:

How To Get Rich Naval - Every Episode

Learn more about strategy with this collection

Why happiness is the ultimate goal

The importance of creating value

How to create wealth in the modern era

Related collections

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates