“Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.”
— Michael E. Porter

In today’s fast-moving world, “strategy” is one of the most overused and misunderstood words in business. It’s frequently confused with planning, goal setting, or vision casting. But to truly unlock its power, we need to understand strategy not just as a buzzword, but as a discipline grounded in choice, coherence, and competitive advantage.

This article explores what strategy really is and what it isn’t by examining the foundational ideas of leading strategic thinkers.

What Strategy Is

1. A Set of Integrated Choices

Roger Martin, in Playing to Win, defines strategy as “an integrated set of choices that uniquely positions the firm in its industry to create sustainable advantage.”

In other words, strategy is not just one choice it’s a system of decisions that reinforce each other.

Real-World Example: IKEA

IKEA doesn’t just sell furniture; it redefined how we buy, transport, and assemble it. Every element of their business model is connected:

• Where will we play? IKEA targets budget-conscious consumers, often in suburban areas, with large-scale stores.
• How will we win? Through cost efficiency, in-house design, and flat-packed, self-assembled furniture.

These choices support one another:

• Flat-pack designs reduce storage and shipping costs.
• In-store restaurants keep shoppers onsite longer, boosting conversion.
• Uniform global store layouts reinforce operational consistency.

It’s a system. If IKEA decided to offer luxury delivery and assembly services, it would undermine the core of its strategic model.

2. A Plan for Creating and Sustaining Competitive Advantage

Michael Porter famously differentiates operational effectiveness (doing things well) from strategy (doing things differently).

Strategy is about making trade-offs. You can’t be all things to all people.

Real-World Example: Southwest Airlines

Southwest deliberately chose to:

• Fly only Boeing 737s (simplifies maintenance and training)
• Avoid major hub airports (faster turnaround, lower fees)
• Offer no assigned seating or in-flight meals (reduces costs)
• Focus on short-haul, point-to-point routes (greater aircraft utilization)

These trade-offs let them deliver low fares with high reliability—and made it nearly impossible for legacy carriers to copy without dismantling their own models.

When American Airlines tried to replicate Southwest with a sub-brand, “MetroJet,” it failed—because they couldn’t make the same trade-offs without cannibalizing their core business.

3. A Hypothesis to Be Tested

Richard Rumelt, in Good Strategy/Bad Strategy, calls for treating strategy as a diagnosis, followed by a guiding policy and coherent action. He criticizes vague goals that lack focus or insight.

Real-World Example: Netflix

In the mid-2000s, Netflix saw the writing on the wall: DVDs were declining, and internet bandwidth was improving. Their strategy was built on a hypothesis: Customers would prefer on-demand digital access to entertainment over physical rentals.

They didn’t just hope—it was a calculated bet. They tested the concept, learned from early data, and pivoted aggressively toward streaming. They also made hard decisions:

• Ending their DVD-by-mail subscription bundle
• Investing heavily in original content (starting with House of Cards)
• Prioritizing global expansion

Netflix’s strategy was not static—it evolved based on data and feedback, just like a scientific hypothesis.

4. A Pattern in a Stream of Decisions

Henry Mintzberg challenges the traditional view of strategy as top-down planning. He argues that strategy is often emergent, discovered through consistent patterns of behavior.

Real-World Example: Amazon

Amazon’s early mission was simple: become the world’s most customer-centric company. But its strategy emerged over time:

• From books to everything
• From e-commerce to cloud computing (AWS)
• From digital storefront to physical presence (Whole Foods, Amazon Go)

Amazon didn’t announce all of this upfront. But Jeff Bezos consistently made decisions based on long-term thinking, customer obsession, and scale—resulting in a strategy that unfolded through action.

Strategic clarity doesn’t always start with a five-year plan. Sometimes it’s revealed through consistent behavior over time.

5. A Bridge Between Goals and Execution

Lawrence Freedman, in Strategy: A History, sees strategy as the connective tissue between intention and action. It helps navigate uncertainty, evolve through feedback, and adapt to external forces.

Real-World Example: Tesla

Tesla’s long-term mission—to accelerate the world’s transition to sustainable energy—has remained consistent. But the path has shifted:

• Initial focus on high-end electric sports cars (Roadster)
• Move to mid-market sedans (Model S, Model 3)
• Expansion into batteries, solar, and now autonomous vehicles

Tesla’s strategy bridges mission and execution. As circumstances evolve, so do the actions—but the core strategic logic (brand, vertical integration, technology innovation) holds steady.

What Strategy Isn’t

1. A To-Do List

A list of actions or goals (e.g., “launch new product,” “open new market”) is not strategy. These are tactics—and without a unifying framework, they can conflict or scatter focus.

2. A Vision or Mission Statement

Your mission says why you exist. Your vision says where you’re headed. But strategy says how you’ll win in your chosen space.

3. Just Long-Term Planning

Strategic planning often extends the status quo. Strategy challenges it. It’s about making bets, not just extrapolating trends.

4. About Being the Best

Being “the best” is subjective and unmoored. Strategy is about being different in ways that your customers value.

5. A Static Document

No strategy survives first contact with reality. Adaptability is not a flaw—it’s a feature of good strategy.

Putting It All Together

Great strategy is:

• Grounded in insight (Rumelt’s diagnosis)
• Built around focused choices (Martin and Porter)
• Revealed in consistent behavior (Mintzberg)
• Evolved through context (Freedman)

It’s a living, breathing framework—not a one-time declaration.

How to Implement Strategic Thinking in Your Business

Here’s a practical 5-step guide you can apply in any organization:

Step 1: Diagnose the Challenge

• Ask: What is the core issue we need to solve?
• Don’t settle for surface-level symptoms. Dig deeper.

Tool: Use a “Five Whys” exercise or SWOT analysis to uncover root problems.

Step 2: Clarify Where You’ll Play and How You’ll Win

• Define your playing field: Market segments, geographies, customer types.
• Define your winning approach: Cost, differentiation, innovation, speed.

Tool: Use the “Playing to Win” framework to map out your choices.

Step 3: Make Deliberate Trade-Offs

• Say “no” to opportunities that don’t fit your strategy.
• Align people, capital, and priorities with your choices.

Tool: Run a strategy screen—does this decision reinforce or dilute our position?

Step 4: Align Execution with Strategy

• Translate strategy into tactics, KPIs, and initiatives.
• Ensure teams understand the “why” behind decisions.

Tool: Create a strategy map that connects long-term goals with day-to-day actions.

Step 5: Monitor, Learn, and Adapt

• Treat your strategy like a working hypothesis.
• Review quarterly. Adjust based on performance, market shifts, and new data.

Tool: Use a simple OKR (Objectives and Key Results) framework to track progress and realign as needed.

Why This Matters

Without real strategy, organizations drift. They react instead of lead. They spread themselves thin, follow competitors, and lose clarity of purpose.

But with clear strategy, you get:

Focus – Energy and investment go where it matters most
Alignment – Teams row in the same direction
Differentiation – You stand out in the market
Resilience – You can pivot with purpose
Results – Sustainable performance over time

Final Thought

Understanding what strategy is and what it isn’t isn’t just an academic exercise. It’s a leadership imperative.

Strategy is the story you write about how you will win. And every choice you make is a paragraph in that story.

Write it well.