Business Problem-Solving and Strategy

2The Many Pitfalls of a Business Strategy

Building Strategy the Right Way Is Tough

Sorry to start on a negative note, but building a business strategy is not an easy task. In fact, it is very difficult. That's why I suppose there is such a specialized title as a business strategy consultant.

One of the reasons why it is so difficult to create a strategy lies in its many pitfalls and traps. These pitfalls and traps often result in a strategy that is not efficient or executable. The first “strategic” idea Kazumi created also fell into these pitfalls and traps and was deemed useless by the executives.

Before moving on to the specific steps of building a business strategy, let's look at what kinds of pitfalls and traps are there (Diagram 1‐5).

Framework and Concepts: Make or Break the Strategy

There are many frameworks to consider when creating a strategy or strategic concepts that follow certain patterns or formulas. Frameworks such as SWOT, Five Forces, and Positioning are well known, and so are the concepts of the three basic strategies (cost leadership strategy, differentiation strategy, and niche strategy). In addition, there is the dominant strategy, the Lancaster strategy, the Blue Ocean or Red Ocean strategy, etc., There is no end to examples of strategic concepts.