Understanding the challenge is crux of strategy dynamics

“Strategy dynamics” is a new realm in strategy study, the phrase itself was coined by Professor Richard Rumelt, a foremost authority in this field. He postulated two aspects: change and challenges. Let me say few pointers on the challenge part of strategy dynamics:

Business strategy neither can exist in a vacuum nor as static. Business always is in the state of flux. So is Business strategy. It evolves as time passes and revolves around how the movements in the internal and external environment are taking place, throwing out new challenges. Whether you like it or not challenges are there and the business that has the ability to cope up with these and have the ingenuity to come top of them succeeds.

First and foremost you must narrow down to the real essence of the challenge you face. It is similar to get the eye of the storm identified. Once you narrow down you can go deep into the challenge and its ramifications to your business, your competitors and to the industry you are in. Once you understand the nature of the challenge and its effects over you, it is easier to define the challenge in few words as possible.

A good example is the rising cost of air travel. Here the budget airlines emerged after studying the cost structure in details and narrowing down on the smooth and affordable travel as the new challenge. They came out with an alternative of no-frills air passage that includes a guarantee of timely departure and arrival plus the security of the carriage passengers take with them.

This innovative idea became a successful business strategy only after the budget airlines spent considerable time on the following salient factors:

1. Setting the right priority of the passengers

2. Focussing on the core subject of safe, timely and convenient air travel

3. Connecting with many people as possible including travellers, agents, pilots, ground handling staff, airport authorities and not to forget travel magazine editors

4. Balancing the needs of the passengers with the kind of services provided by airlines

5. Improving efficiency and effectiveness at one and the same time

6. Finally, realizing the need for something must happen that too speedily to solve high cost of air travel.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist