What separates a powerful strategy from a run-of-the-mill or ineffective one?
A)the ability of the strategy to keep the company profitable
B)the proven ability of the strategy to generate maximum profits
C)the speed with which it helps the company achieve its strategic vision
D)management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals and produces sustainable competitive advantage
E)whether it allows the company to maximize shareholder value in the shortest possible time.

Question

Quizplus · Accepted Answer

A powerful strategy is one that allows the company to create sustainable competitive advantage, which means a unique value proposition or differentiation that sets it apart from its rivals in the marketplace. This requires management to forge a series of actions, both externally and internally, that create barriers to entry, enhance customer loyalty, and drive profits. Simply keeping the company profitable or maximizing shareholder value in the short term does not necessarily mean the strategy is powerful or effective in the long run. Speed in achieving the company's strategic vision may also be important, but only if it is aligned with the creation of sustainable competitive advantage.

What Separates a Powerful Strategy from a Run-Of-The-Mill or Ineffective