Strategy has its roots in Economics, Organization Design, Finance, Accounting (yes Accounting), Marketing, Statistics, Supply Chain, and Sales. So Strategy cannot work in isolation even when someone says “I am developing a Sales strategy”, it is assumed that the other elements have been optimized enough to support a particular sales strategy (a sales play is not strategy it is a tactic).
So what is a tactic ? Tactic could either product, promotion, or service it is the execution arm of strategy and tactic (product/service) can continue to change at a greater pace than strategy. Strategy is turn is built upon a vision and hence strategy can change because it all about capturing value but maybe not at the same rate as a product (strategy is not about increasing sales. If you provide value the sales will follow). Vision of a company usually takes longer to change.
Most of my friends know that I am an Apple fanboy and it is not just because I am addicted to their products but Apple is one of the few companies that illustrates these points well (BTW I am not being paid by Apple to write this blog, I just love what they do).
Apple’s Vision: Enrich peoples lives with their products
Apple’s Strategy: The best integrated experience of software, hardware, and services
Apple’s Products: I think we all know these really well
Other companies that exhibit these traits are Amazon, Johnson & Johnson, Brembo, Lincoln Electric, P&G etc. There are a lot a good companies that understand such distinction.
Maybe next time when I hear someone talk about coupons as a strategy, I might be able to collect my thoughts better and explain the difference.
(BTW I am not claiming that I am in expert in strategy or that I know enough about strategy. Like the blog says these are just my musings. If you find something else that has better explanation of strategy please let me know)
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