Strategy

Strategy is a plan of action designed to achieve long-term or overall aims under conditions of uncertainty. It involves choosing where to compete, what to do to win, and how to allocate scarce resources to align actions with desired outcomes. A strategy provides direction, coherence, and a basis for coordinating activities across an organization or system.

In military and political contexts, strategy often refers to the overall plan for using available means to achieve stated objectives, encompassing grand strategy, campaign planning, and logistics. In business and management, strategy defines the long-term direction of an organization, the sources of competitive advantage, and how value will be created and sustained. Corporate strategy looks at the portfolio of businesses, while business and functional strategies address competitive positioning, markets, products, and operations.

The strategic management process typically includes environmental analysis, internal assessment, strategy formulation, implementation, and evaluation. Tools such as SWOT analysis, PESTEL analysis, and Porter’s Five Forces help identify opportunities and threats, while frameworks like value chain analysis and core competencies inform resource allocation and capability development. Strategy is linked to execution: plans must be translated into actions, governance, and performance measurement. Because environments change, strategic thinking also involves scenario planning and adaptation, balancing long-range objectives with near-term constraints.

Overall, strategy is concerned with making choices that align an organization’s aims with its capabilities and the external landscape, to achieve sustainable advantage and impact over time.