Strategy

Overview

Strategy, from the Greek "strategia" meaning "generalship", is a high-level plan to achieve one or more goals under conditions of uncertainty. It is a comprehensive plan designed to bring about a desired future, such as the achievement of a goal or solution to a problem problem solving. Strategy is important because resources available to achieve these goals are usually limited. Strategy generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources).

History

The term strategy has been used implicitly in different ways even if it was traditionally defined in all sectors. The concept came into use in the 6th century C.E. in the Byzantine Empire in reference to a military governor of a province. The term was used to refer to the planning and directing of operations in a war. In a business context, the term strategy has been borrowed from the military and adapted for use in business.

Military Strategy

In military theory, strategy is "the utilization during both peace and war, of all of the nation's forces, through large scale, long-range planning and development, to ensure security and victory" (Random House Dictionary). The father of Western modern strategic study, Carl von Clausewitz, defined military strategy as "the employment of battles to gain the end of war". Liddell Hart's definition put less emphasis on battles, defining strategy as "the art of distributing and applying military means to fulfill the ends of policy". Hence, both gave the pre-eminence to political aims over military goals.

Business Strategy

In the world of business, strategy is equally important in order to achieve valuable business goals. It's the master plan that the management of a company implements to secure a competitive position in the market, carry on its operations, attract and satisfy customers, compete successfully, conduct operations, and achieve targeted objectives. Business strategy involves leveraging the core competencies of the organization to achieve a defined high-level goal or objective.

Game Theory and Strategy

In game theory, a strategy refers to the rules that guide an individual player's actions. This type of strategy is not about winning in and of itself, but about the actions that can lead to winning. Game theory can be used in a wide array of economic fields, including experimental economics, which uses experiments in a controlled setting to test economic theories with more real-world insight.

Strategy in Technology

In technology, strategy may be related to the direction and scope of an organization over the long term, which ideally matches its resources to its changing environment, and in particular, its markets, customers or clients, so as to meet stakeholder expectations. Technology strategy is often described as revolutionary or evolutionary. Revolutionary strategies are typically brought about by technologies that do not exist or are not currently implemented by the firm or its competitors. Evolutionary strategies are typically incremental innovation from within the firm's existing technological capabilities.