Business leaders are often concerned with how to grow their business and make them outperform the competition. While it mostly remain a tough question to answer for many, the smart ones find the answers, and by so doing, are able to perform better than the rest.

If – as it truly is – understanding what the customer wants, having effective channels for delivering what they want, and effective deployment of the key resources required for a business, are key elements for gaining competitive edge, then, having unique strategies that’ll put your business ahead of the competition is a world’s worth.

Truth be told, most businesses have strategies upon which they run their enterprise. However, running with un-researched, unarticulated, unstructured and uncoordinated plans is usually as bad as not having any. By stroke of luck, they may survive for a while, but are constantly prone to competitive vicissitudes sweeping them off – usually unexpectedly.

The practice of running an enterprise without well-articulated strategies typically stems from the avoidance of the rigours involved in developing good strategies. However, the benefits of having the right strategies far outweigh the sacrifices involved in the development process. After all, who goes into a battle without the right tactics, and expects to come out triumphant? The question then is what constitutes the right strategy in business?

What is business strategy?

Simply put, Business Strategy is a deliberately crafted plan of action that will develop a business’s competitive advantage, and compound it.

If you carefully consider the above definition, two elements are worthy of a second look. Those are: (i) Developing competitive advantage and (ii) Compounding that advantage.

The search for how to compound your competitive advantage is unarguably far more important than the competitive advantage you have at the moment. For instance, is you’re in business and you have some loyal customers at the moment, those customers are perhaps loyal to you because of the competitive advantage they consider you business to have over your competitors. To survive, grow and prosper however, your business must compound that advantage and expand beyond it – first to prevent the competition from taking of what you have already and second, to expand your market share. This is the realm of Business Strategy.

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