The five strategic choices, as defined in our framework, represent a coordinated and integrated approach to achieving success. They are:
The Five Key Strategic Choices
These choices work together to create a cohesive strategy:
| Strategic Choice | Description |
|---|---|
| Winning Aspiration | Defines what the organization hopes to achieve in the long-term. It's the vision or the ideal state the company wants to reach. |
| Where to Play | Determines the markets, segments, geographies, and channels in which the organization will compete. It focuses the resources. |
| How to Win | Outlines how the organization will gain a competitive advantage in the chosen markets. It describes the value proposition. |
| Core Capabilities | Refers to the unique skills, processes, and resources an organization must develop to execute its chosen strategy successfully. |
| Management Systems | Consists of the organizational processes, systems, and structures that enable and support the execution of the strategy. |
Understanding Each Choice
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Winning Aspiration: This isn't just a goal; it's the purpose driving the company.
- Example: A company's winning aspiration might be to become the global leader in sustainable packaging.
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Where to Play: This choice involves decisions about target customers, geographies, and product categories.
- Example: A company might decide to focus on the European market and high-end customers.
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How to Win: This is about creating a competitive edge.
- Example: A company might win through superior product quality or innovative customer service.
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Core Capabilities: These are essential for executing the chosen strategy.
- Example: A company might need to develop strong research capabilities or a highly efficient supply chain.
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Management Systems: These support all other choices.
- Example: A company might need to implement new IT systems or talent management programs to support its strategic goals.
These five choices are not independent; they are interrelated and should be aligned to achieve the desired outcomes. Successful strategy development requires thoughtful consideration and integration of each of these choices.
