Strategy is all about starting and stopping in time

 

There are considerable number of ways how you describe a strategy, as well as even more ways to abuse this word in virtually every professional industry. What in a sense connects all the good ways to define a strategy is a simple criterion: when business needs to be started, and when it needs to be stopped. Then you manage overall company by following the market needs with long-, and short-lasting business lines. 

Let’s clarify. Team founding a company typically goes through evolution: from getting a minimal viability product, to a mature product, to a business, and after all to the company which manages what their customer needs rather what the business (line) was doing yesterday. It takes a lot of effort to get into a mature business state, hence typical companies, due to set incentives and corresponding communications, will naturally fight back any disrupting changes.

Historically good example here is Eastman Kodak (before 2012 bankruptcy). As mature company they held for film production and distribution business line so tight, that when digital camera was invented inside of Kodak, they failed to recognize it as a pivotal moment, and kept investing more money into chemical projects, where well established business lines were. Digital photos have brought much better moment capturing experience. They got disrupted by change, and deliberately missed timing to start the new business line which would define generations to come.

Understanding your customers, and what does not change over time is defining overall vision of a company. The timing of each business company runs defines strategy. Every other transition in-between is execution of such vision.

The more welcoming corporate incentives and processes are for changes in a market, the more a company can continue to innovate, and follow the evolving tastes of their customers.