Strategy in Absence of Competition
WHAT IS STRATEGY
Before answering the questions which are asked in the assignment I would prefer to describe my own understanding about strategy. It will be a lot easier to comprehend the rest of the assignment once my perspective about strategy is cleared to the reader.
Different authors have defined strategy differently. Azdhar Karami (Strategy Formulation in Entrepreneurial Firms, 2007) discussed the opinions of Mintzberg and Quinn (1998) and Johnson and Scholes (1993) and he came to the conclusion that strategy is not only a plan of activities in order to achieve objectives but it is a bonding element which binds goals, policies and actions of the organization. Strategy of a company is also responsible for connecting the company to the environment or in other words to the market.
LEVELS OF STRATEGY
There are three levels of strategy as discussed by Bourne, Michael Gregory and Mike Mills (Strategy and Performance: Creating a Winning Business Formula, 2002),
Corporate Strategy
It describes about the business the company is dealing in. The code of conduct, company ethics and cultures is reflected in this level of strategy. It is mainly as-sociated with stakeholders interest. Most often the mission statement and vision of a company is the corporate strategy.
Business Strategy
This level of strategy is mainly dealing with the environment or market as I dis-cussed earlier. Here you plan actions or sets of activities in order to compete in the market, to improve the service level, to attract customers by launching new products. Another important area which is covered in this level is how to ensure the existence of the company in the future.
Functional Strategy
This level can be considered as the implementing phase of strategies. Thats why it is more focused towards procurement, resources and operations. However, in all these phases reflection of corporate and business strategy is immensely im-portant.
STRATEGY IN ABSENCE OF COMPETITION
I believe that it is a misconception that strategies are only related to the competitors. Thats why I have discussed earlier different levels of strategy. A corporate strategy can be based on the market situation or on competitors. But it is not a hard and fast rule that it must be related to competition in the market.
For example, Mission and Vision statements of Coca-Cola do not give any direct hint about the competitors. Creating value, refreshing the world and providing coke within easy reach of consumer are the areas focused in their corporate strategy.
However, a part of their vision is maximizing profit which can be achieved by growing their market