What are the 3 tests that can be applied to determine whether a strategy is a Winning strategy?

What are the 3 tests that can be applied to determine whether a strategy is a Winning strategy?

The answer is :

1) FIT TEST

Q: How well does the strategy fit the company's situation?

-Wins = Fits the company's internal and external situation

-Strategy has to be well matched to industry and competitive conditions, a company's best market opportunities, and other pertinent aspects of the business environment in which the company operates

2) COMPETITIVE ADVANTAGE TEST

Q: Is the strategy helping the company achieve a sustainable competitive advantage?

-Wins = Builds sustainable competitive advantage

-Long-lasting advantage over key rivals

-Bigger and more durable the competitive advantage, the more powerful it is

3) PERFORMANCE TEST

Q: Is the strategy producing a good company performance?

-Wins = Improves company performance

-Performance indicators:

1) Competitive strength and market standing

2) Profitability and financial strength

-Strategies that come up short one or more of the preceding tests are plainly less appealing than strategies passing all three tests with flying colors