What is Strategy – Michael Porter

In this compelling video of Michael Porter, he discusses “What is Strategy” and the common pitfalls in defining strategic directions for firms. For him, strategy is about being different. “It means deliberately choosing a different set of activities to deliver a unique mix of value.”* Strategy is about competitive position. He defines it as “a combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there.”*

Porter is saying that many people mistake strategies and steps. For example, they will say that their strategy is to “Internationalize”, rather than showing the unique way in which they choose to attain their goals. This is an important difference, since with a true strategy, you can constantly change your tactics as the environment changes. If you are focusing on steps, you are not so flexible.

Now – I don’t want to be too picky about definitions by quoting the grandfather of strategy but a lot of Marketers are out there calling themselves Marketing Strategists, then they will only provide tactics (Get on Facebook! Get on Twitter!) Any consultant worth their salt will be able to tell you why, how and what makes you different, instead of just recommending you show up. Now more than ever, it is important that your marketing strategy be flexible, and you do not get there by relying on a set of tactics.

*Michael Porter. Harvard Business Review (Nov-Dec 1996). and Competitive Strategy (1986). Michael Porter. Harvard Business School Press.