“Good strategy works by focusing energy and resources on one, or a very few, pivotal objectives whose accomplishment will lead to a cascade of favorable outcomes.”
— Richard Rumelt, Good Strategy/Bad Strategy

Why Strategy Isn’t Optional—It’s Everything

In a world where execution is fast and attention is short, the real advantage lies not in doing more, but in doing what matters strategically. We’ve all seen businesses with great ideas fall apart, while others with humble beginnings turn into global powerhouses. The difference? Strategy.

This post unpacks real-world strategy hits and misses from LEGO’s near-death rebirth to Kodak’s downfall, Nike’s bold DTC pivot to Quibi’s spectacular implosion. We’ll break down the elements that made these moves successful or disastrous, and end with a practical guide to help your strategy stand out.

The Best Strategies: Focused, Future-Oriented, and Customer-Led

To ensure consistency and clarity, we’ll look at each example using the same lens:

• Context
• Strategic Move
• Why It Worked
• Proof of Success

Best Strategies: Bold, Clear, and Customer-Centric

1. LEGO – Turning Decline Into Dominance

Context:
In the early 2000s, LEGO was in crisis. Revenue had fallen by 30% in just two years, and the company was $800M in debt.

Strategic Move:
CEO Jørgen Vig Knudstorp executed a radical turnaround by:

• Cutting SKUs by 50%
• Refocusing on best-performing product lines
• Co-creating with fans (e.g., LEGO Ideas)
• Leveraging licensed storytelling (Star Wars, Harry Potter, Ninjago)

Why It Worked:
LEGO simplified operations and reconnected with what customers loved most—creativity, storytelling, and play.

Proof of Success:
Between 2004 and 2014, LEGO increased revenue by 400% and became the world’s most profitable toy company.

2. Sephora – Owning the Omnichannel Beauty Experience

Context:
As traditional retailers struggled with digital disruption, beauty shoppers wanted high-touch experiences and tech-enabled convenience.

Strategic Move:
Sephora created a digitally integrated, customer-first ecosystem:

• AR “Virtual Artist” try-ons
• Seamless loyalty rewards across in-store and digital
• Personalised mobile experiences
• Social commerce and community

Why It Worked:
By blending online and offline touchpoints, Sephora gave beauty lovers what they wanted, where they wanted it.

Proof of Success:
From 2015–2021, Sephora saw double-digit global growth, surpassing department stores in prestige beauty share.riven shopping. The strategy wasn’t channel-based; it was customer-experience-first.

3. Nike – Betting Big on Direct-to-Consumer

Context:
Amid rising e-commerce and declining retail foot traffic, Nike needed more control over its brand experience.

Strategic Move:
Nike shifted from wholesale to Direct-to-Consumer (DTC):

• Exited Amazon and 30% of retail partners
• Launched SNKRS app and NikePlus loyalty
• Invested in experiential flagship stores

Why It Worked:
Nike took ownership of the customer relationship, enabling richer data, better personalisation, and premium positioning.

Proof of Success:
DTC now accounts for over 40% of Nike’s total revenue, helping it achieve $51.2B in sales in FY23—up from $32.4B in FY17.

Worst Strategies: Misaligned, Outdated, or Ego-Driven

1. Kodak – Missing the Future It Invented

Context:
In 1975, Kodak developed the world’s first digital camera. But leadership shelved it, fearing it would cannibalise film sales.

Strategic Move:
Protect its lucrative film business instead of adapting to emerging digital trends.

Why It Failed:
Kodak lacked the courage to disrupt itself, even though it owned the technology. It optimised the present at the expense of the future.

Proof of Failure:
By 2012, Kodak filed for bankruptcy. Its market share was consumed by competitors like Canon, Sony, and Apple.

2. JC Penney – Reinvention Without Research

Context:
In 2011, JC Penney was struggling with declining relevance and heavy discounting.

Strategic Move:
New CEO Ron Johnson eliminated discounts, revamped store layouts, and tried to shift to a premium pricing model—without testing or understanding core customer needs.

Why It Failed:
The strategy ignored loyal bargain-seeking customers and moved too fast without validating assumptions.

Proof of Failure:
Sales dropped 25% in a single year, and the company lost over $4B in market value. Johnson was fired after 17 months.

3. Quibi – A $1.75B Content Misfire

Context:
Backed by Jeffrey Katzenberg and Meg Whitman, Quibi launched in 2020 with big money and Hollywood stars, promising mobile-only “quick bites” of premium content.

Strategic Move:
Build a mobile video platform with original short-form content behind a paywall.

Why It Failed:

• No product-market fit
• No user community or distribution engine
• Launched in a pandemic when people weren’t commuting (its main use case)

Proof of Failure:
Quibi shut down just 6 months after launch, returning most of its $1.75B in capital to investors.

What These Examples Teach Us

Great Strategies Are…

• Clear on value: They focus on what the brand uniquely delivers (LEGO, Nike)
• Customer-centric: Designed around real behavior and expectations (Sephora)
• Bold but grounded: Willing to transform, but with testing and insight
• Flexible and iterative: Adaptive in execution and based on real-time feedback

Poor Strategies Are…

• Disconnected from reality: Based on ego or legacy (Kodak, JC Penney)
• Lack of alignment: Between leadership vision and customer need
• Too much, too fast: Without piloting or learning loops
• Internally obsessed: More focused on internal preferences than market dynamics

So what separates legends from failures? The answer lies in five strategic patterns we see repeated:

1. Winners are bold, but customer-driven.
   Even radical moves (Nike, LEGO) start from real insight into user behaviour.
2. Winners are focused.
   They cut what doesn’t serve the strategy—even if it’s painful.
3. Winners are iterative.
   They test and adjust rather than going all-in blind (unlike Quibi or JC Penney).
4. Winners invest in experience, not just product.
   Sephora and Nike won by owning the end-to-end journey.
5. Winners future-proof.
   They build for what’s next, not just what’s now (unlike Kodak).

Checklist: How to Build a Standout Strategy

Here’s a quick checklist to ensure your strategy avoids the pitfalls and follows the playbook of winners:

1. Start with customer insight.
2. Research behaviours, not just demographics. Solve real problems.
3. Make a clear value proposition.
4. Define what makes your offer different and relevant.
5. Prioritise and make trade-offs.
6. Say no to distractions. Strategy is choice.
7. Pilot before scaling.
8. Test your assumptions. Let data refine your ambition.
9. Align structure and resourcing.
10. Don’t expect big change with business-as-usual teams or budgets.
11. Reinforce through storytelling.
12. Communicate often, clearly, and emotionally. Make it stick.
13. Build in feedback loops.
14. Adapt to signals. Strategy isn’t static.
15. Stay brave, but stay real.
16. Confidence is key—but so is humility.