{"id":7403,"date":"2020-09-28T07:13:06","date_gmt":"2020-09-28T12:13:06","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=7403"},"modified":"2020-12-18T20:46:49","modified_gmt":"2020-12-19T01:46:49","slug":"how-to-differentiate-between-general-corporate-and-competitive-strategy","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/how-to-differentiate-between-general-corporate-and-competitive-strategy\/","title":{"rendered":"How to Differentiate Between General, Corporate, and Competitive Strategy?"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-7417\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/Chessboard1-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/Chessboard1-300x200.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/Chessboard1-768x511.jpg 768w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/Chessboard1-1024x681.jpg 1024w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/Chessboard1.jpg 1920w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Strategy and execution are the 2 critical elements that drive a business.\u00a0 However, leaders often struggle even with defining\u2014let alone devising and executing\u2014an effective\u00a0<a href=\"https:\/\/flevy.com\/browse\/stream\/strategy-development\">strategy<\/a>.\u00a0 Many of those who are responsible to deal with it fall short of describing how they typically employ it.\u00a0 This failure takes its roots from the fact that there is no clear path associated with strategy.<\/p>\n<p>Strategy is about making sound decisions about unforeseen problems.\u00a0 It\u2019s about selecting the right options\u2014about matters that are often quite ambiguous today but have great significance in the future\u2014based on thorough contemplation, detailed analysis, and creative ideas.\u00a0 Broadly speaking, strategy encompasses these 3 main elements:<\/p>\n<ul>\n<li>A vision and direction<\/li>\n<li>A certain position or pattern<\/li>\n<li>A deliberated <a href=\"https:\/\/flevy.com\/strategic-planning\">Strategic Plan<\/a> to achieve strategic goals and vision<\/li>\n<\/ul>\n<p>Great strategists execute their plans, analyze the results, evaluate their actions, and perform course correction based on the outcomes.\u00a0 They are not afraid of even revamping their approach entirely. \u00a0Senior leaders should clarify their understanding of the concept of strategy and draw attention to the importance of differentiating between the <a href=\"https:\/\/flevy.com\/browse\/flevypro\/the-3-distinctions-of-strategy-5251\">3 distinct types of strategies<\/a> before formulating their own course of action:<\/p>\n<ol>\n<li><strong>General Strategy <\/strong><\/li>\n<li><strong>Corporate Strategy <\/strong><\/li>\n<li><strong>Competitive Strategy <\/strong><\/li>\n<\/ol>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/the-3-distinctions-of-strategy-5251\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-7415\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/3-Distinctions-of-Strategy.png\" alt=\"\" width=\"962\" height=\"722\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/3-Distinctions-of-Strategy.png 962w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/3-Distinctions-of-Strategy-300x225.png 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/09\/3-Distinctions-of-Strategy-768x576.png 768w\" sizes=\"(max-width: 962px) 100vw, 962px\" \/><\/a><\/p>\n<p>Let\u2019s delve deeper into the 3 types of strategy.<\/p>\n<h2><strong>General Strategy <\/strong><\/h2>\n<p>General Strategy indicates how a specific objective will be achieved, with well-thought-out plans.\u00a0 The focus of this type of Strategy is on ends (objectives and results) and means (the resources we have to achieve the objectives). \u00a0Strategy and tactics combined bridge the gap between ends and means; where Strategy deals with deploying the resources at our disposal while tactics govern their utilization.\u00a0 A pattern of decisions and actions marks progress from the starting point to achievement of objectives in General Strategy.<\/p>\n<p>Senior executives need to deliberate on the following questions before devising their General Strategy:<\/p>\n<ul>\n<li>What do we do?<\/li>\n<li>Why are we here?<\/li>\n<li>What kind of business are we?<\/li>\n<li>What kind of business do we want to become?<\/li>\n<li>What is our purpose? What are the results we seek?<\/li>\n<li>What is our existing Strategy, is it explicit or tacit?<\/li>\n<li>What Strategy and plans may bring about the results we want?<\/li>\n<li>What resources we have at our disposal?<\/li>\n<li>Are there any constraints in terms of resources that limit our actions?<\/li>\n<\/ul>\n<h2><strong>Corporate Strategy<\/strong><\/h2>\n<p><a href=\"https:\/\/flevy.com\/business-toolkit\/corporate-strategy\">Corporate Strategy<\/a> describes what a company does, the purpose of its existence, and what it aims to become.\u00a0 Corporate Strategy focuses on choices and commitments concerning the markets, business, and the organization.\u00a0 Corporate Strategy classifies the markets and the businesses in which a company will operate. \u00a0This type of strategy is typically decided in the context of defining the company\u2019s mission and vision.<\/p>\n<p>A detailed assessment of the existing strategy, market, competition and environment is critical for devising the Corporate Strategy.\u00a0 Strategists indicate that there are critical elements that should be factored in while formulating Corporate Strategy.\u00a0 These elements include product or service offerings, resources, marketing and sales approaches, manufacturing capabilities \/ capacity, customers, distribution channels, technology, type of market and its requirements, and revenue and profit goals.<\/p>\n<p>While formulating Corporate Strategy, senior executives should consider and seek answers to the following questions:<\/p>\n<ul>\n<li>What is our existing Corporate Strategy?<\/li>\n<li>Is our Corporate Strategy explicit or tacit?<\/li>\n<li>What are the critical assumptions that make our existing strategy viable?<\/li>\n<li>What is going on in the market\u2014in terms of social, political, technical and financial environment?<\/li>\n<li>What do we seek to accomplish in terms of our growth, size, and profitability targets?<\/li>\n<li>What markets we are eyeing to compete in?<\/li>\n<li>What businesses we intend to operate in?<\/li>\n<li>What locations and geographies will we compete in?<\/li>\n<\/ul>\n<h2><strong>Competitive Strategy<\/strong><\/h2>\n<p>Competitive or Business Strategy specifies for an enterprise the core reason on which it contests its rivals. \u00a0It depends on an organization\u2019s competences, advantages, and disadvantages compared to the market and the rivals.<\/p>\n<p>Interested in learning more about the <a href=\"https:\/\/flevy.com\/browse\/flevypro\/the-3-distinctions-of-strategy-5251\">General, Corporate, and Competitive Strategies<\/a>? You\u00a0can download\u00a0<a href=\"https:\/\/flevy.com\/browse\/flevypro\/the-3-distinctions-of-strategy-5251\">an editable PowerPoint on The 3 Distinctions of Strategy here\u00a0<\/a>on the\u00a0<a href=\"https:\/\/flevy.com\/browse\">Flevy documents marketplace<\/a>.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>. <a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here&#8217;s what some have to say:<\/p>\n<blockquote><p>&#8220;My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant&#8217;s toolbox.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it&#8217;s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients&#8217; benefits.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Strategy and execution are the 2 critical elements that drive a business.\u00a0 However, leaders often struggle even with defining\u2014let alone devising and executing\u2014an effective\u00a0strategy.\u00a0 Many of those who are responsible to deal with it fall short of describing how they typically employ it.\u00a0 This failure takes its roots from the fact that there is no&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/how-to-differentiate-between-general-corporate-and-competitive-strategy\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">How to Differentiate Between General, Corporate, and Competitive Strategy?<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":7417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[408,81],"tags":[5,132,1025,76,2171,2173,216,27,2172],"class_list":["post-7403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-leadership","category-strategy","tag-business-strategy","tag-competition","tag-competitive-strategy","tag-corporate-strategy","tag-general-strategy","tag-mission","tag-porters-five-forces","tag-strategic-planning","tag-strategic-vision"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=7403"}],"version-history":[{"count":9,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7403\/revisions"}],"predecessor-version":[{"id":7787,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7403\/revisions\/7787"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/7417"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=7403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=7403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=7403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}