Business Success: By Luck or Strategy

I have read innumerable articles on strategy and companies following a ‘definite’ strategy which has made these company ‘run their businesses successfully’ for a long period of time. No, doubt systematic analysis of environments around, marketing capabilities may be some of the factors which have made these companies tuck into the business world. But, simultaneously a question raises its head,  are these factors only really responsible for success, various organisations, if not all, tasting today?

Let’s together, peep into the business world. On close look at various businesses and their success stories based on ‘certain strategy’ being followed by them, reveals that truth is far from the fact. It seems that most of the time, it is due to a product simply as there is no other comparable product in the market that makes a company run its business ‘successfully’ to a point and not because of having an appropriate strategy. Regarding strategy, most of the people do not even know what strategy actually is being followed in their own organisations. Routine business analysis, achievements of short term business goals, product demand, and pricing engross people so much that they do not have time to look for an appropriate strategy based on certain fact analysis and the capabilities of organisations. On top of that, some well ‘marketed strategy concepts’ make scenario more complex. I find today everyone talking about five forces strategy as a panacea of all business constraints  without realising that this strategy and many others do work under certain circumstances. Business leaders, to my understanding must work on active & regular reading & analysis of the market and their own capabilities to frame their strategies. To touch here, one should look for a different strategy if an organisation is having strong linkages between market share and profitability then for fragmented or specialised market. In short, where to play, how to play and how to win should define strategic goals.

Conclusively, different environment require different strategies. Therefore, strategies can be formulated only based on the capabilities of an organisation to foresee and impact the future or not. It means if an organisation can foresee future well but does not have ability to change it, it needs different strategy then an organisation which can. Accordingly, culture, leadership, marketing and business planning are decided upon to follow the chosen strategy.

I want to here, emphasize on the need to thin slice & delineate business environment around and individual business capabilities to decide upon which strategy has to be followed. Classical or adaptive or visionary or may be shaping strategy - either of these, may be the final choice. Organisations which work on either product capability or demand for its product do necessarily not follow a strategy and run a business in hindsight.