Strategy – is a way to win. Strategy explains how a company, faced with
competition, will achieve superior results. Specific choices companies
make to win in the marketplace.
● Strategy starts with a purpose – when you start with the end in
mind, every action, activity and decision you put your time,
money and effort into is designed to advance and enhance your
● Strategy is not about perfect, no strategy is perfect, it’s about
shortening your odds
● You must play to win – Every company shouldn’t just want to
serve customers, it should want to win with them. Just
participating is self destructive.
● Once winning is defined and set as the guiding purpose of the
company (aspiration) the rest of strategy is finding ways to
deliver that win…Strategy is a set of choices about winning
● Winning should ALWAYS be crafted with the consumer
EXPLICITLY in mind.
● For a strategy to have any real meaning at all it must link
directly back to a company’s financial performance
Profit = Price – Cost
The 5 Forces Competing for Profit
● Supplier Bargaining Power
● Consumer Bargaining Power
● Threat of New Entrants
***Competitive Advantage – compared to rivals you operate at a lower cost, command a premium price or both
● These are the only ways that one company can outperform another.
● We lower first click costs by 50-70%
● We lower acquisition costs by not advertising to prospects who
are NOT InMarket.
● We help them command a premium by heavily advertising to
the right prospects at the right time with the right message that
gets them a premium price.
● A company can sustain a premium price only if it offers something
that is both unique and valuable to its customers.
● Create more buyer value and you raise what economists call
WTP….willingness to pay, the mechanism that makes it possible for a
company to charge a higher price relative to rival offerings
● For a company to produce at lower cost than a rival they have to find
more efficient ways to create, produce, deliver, sell and support
(Value Chain) their product or service.
● A company’s Value Chain is part of the larger Value System- the
larger set of activities involved in creating value for the end user,
regardless of who performs the activities