Strategy is 'Decluttering'

Issue Analysis and Strategy Formulation for Assumed Businesses [Part 3]
Strategy is 'Decluttering'

In the previous installments, I stated that a shift in perspective is crucial for correctly grasping and analyzing business issues. This time, let's consider how to translate those analysis results into a concrete 'strategy'.

There are many strategy theories overflowing in the world, but when you get down to it, the essence of strategy lies not in 'what to do,' but rather in 'what not to do'.

This might feel surprising. Many companies think about growing by starting something new or entering new markets. While that in itself is not wrong, a truly effective strategy is born from 'thoroughly stripping away what is unnecessary'.

For example, Apple was a company with many product lines, but the first thing Steve Jobs did upon his return was to organize those many lines and focus on a small number of products that truly had value. The result was global hits like the iPhone and Mac.

A common outcome after a company analyzes its issues is to spread itself thin by trying to 'do this and that'.
However, resources are not infinite. Trying to do everything is, in the end, the same as doing nothing.The essence of strategy lies in 'resource concentration', and for that, it is necessary to set clear priorities and thoroughly implement selection and concentration.

So, what is needed to 'discard'?
It is courage and resolve. Reducing businesses, discontinuing products, withdrawing from markets—these decisions are not easy. However, it is precisely those painful decisions that bring true growth to an organization.

Another important thing is the criteria for deciding 'what to discard'. To clarify those criteria, you must ask yourself the questions, 'What is our company's strength?' and 'What is our unique value that competitors cannot imitate?'.
Concentrate resources in areas where you have a competitive advantage, and have the courage to withdraw from other areas. This is the essence of the simplest and most effective strategy.

The same can be said for 'discarding' in business as in personal life. Just as you can live a richer life by organizing your surroundings and keeping only what is truly important, the same applies here.

In the final installment next time, I would like to summarize the content covered so far and explain how to create an 'action plan' to actually implement strategy.
Strategy is only meaningful once it is executed. I will show concrete steps necessary to ensure it doesn't end as mere armchair theory.