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
Post a Comment
Post a Comment