Have you ever heard the phrase 'It's not what you do, it's how you do it?' Well, this phrase perfectly sums up the importance of strategy and execution in business. While they may sound like buzzwords, strategy, and execution are crucial elements of any successful business.
Imagine planning a road trip with friends. You have a map that outlines the route you need to take, the sights to see, and the expected arrival time. This map is your strategy, a plan that outlines your destination and the steps needed to get there. But having a map alone won't get you there, you need to put the plan into action, drive the car, take the turns and make adjustments along the way to arrive at your destination. This action is execution.
In business, strategy and execution are two sides of the same coin. Strategy is the plan, and execution is the action taken to achieve that plan. A great strategy is useless without effective execution, and great execution won't get you very far without a sound strategy. While both are crucial for success, it's often a challenge for small business owners and entrepreneurs to find the right balance between strategy and execution.In this blog, we'll explore real examples of strategy vs execution and offer tips to enhance both for small business success.
Use cases of strategy vs execution
Blockbuster vs Netflix:
In the early 2000s, Blockbuster was the king of video rental stores. However, when Netflix entered the market with its mail-order DVD rental service, Blockbuster failed to see the potential of online streaming and dismissed it as a passing fad. While Blockbuster had the strategy of being the biggest video rental store, it failed to execute the shift to digital streaming, ultimately leading to its downfall. Meanwhile, Netflix had a strategy to disrupt the market with a new business model and executed it brilliantly, becoming the leader in online streaming.
The lesson here is that having a sound strategy is important, but being able to execute it effectively is even more critical. In the face of changing markets and technologies, businesses must be willing to pivot and adapt their execution processes to stay ahead of the competition.
Apple vs Microsoft:
When it comes to personal computers, Apple and Microsoft have been rivals for decades. While Microsoft had the strategy of dominating the market by licensing their software to other manufacturers, Apple focused on creating a closed ecosystem where they controlled both the hardware and software. While Microsoft's strategy was successful in terms of market share, Apple's execution of its strategy resulted in a dedicated fan base and higher profit margins.
The lesson here is that execution can be just as important as strategy. While Microsoft had a sound strategy, Apple's execution of its strategy set them apart and created a unique brand identity.
Amazon's Successful Strategy for Same-Day Delivery
Amazon's success is largely due to its focus on customer service and convenience. In 2014, Amazon introduced same-day delivery, a service that allows customers to receive their orders on the same day they are placed. The strategy was to offer a service that would provide customers with instant gratification and a competitive edge over other retailers.
The execution of the strategy involved significant investment in logistics and infrastructure, including building warehouses close to major metropolitan areas. The result was a service that revolutionized the retail industry and set a new standard for customer convenience.
Apple's Failed Strategy for Apple Maps
Apple is known for its innovative and groundbreaking products. In 2012, Apple released Apple Maps, a mapping service to compete with Google Maps. However, the release was marred with glitches and inaccuracies, leading to a massive backlash from customers and media outlets. The strategy was to create a mapping service that would be better than Google Maps and integrate seamlessly with Apple's products. However, the execution of that strategy was flawed, resulting in a product that was riddled with bugs and inaccuracies.
Having a solid strategy is not enough, and that execution is just as important, if not more so. Apple's strategy to create a mapping service that would compete with Google Maps and integrate seamlessly with their products was sound, but the execution of that strategy was flawed. The product was not ready for release, and it was not thoroughly tested before it was launched, resulting in negative consequences for Apple and its customers.
Tips for Enhancing Strategy and Execution
Communicate effectively:
Effective communication between teams is crucial for both strategy and execution. A sound strategy is useless if it's not communicated clearly to the team responsible for executing it. On the other hand, effective execution requires clear communication and coordination between different departments to ensure everyone is working towards the same goal.
Set clear goals:
Both strategy and execution require clear, measurable goals to be effective. Set achievable goals that align with your overall strategy, and track progress regularly to ensure you are on track to meet them.
Be flexible:
As mentioned earlier, being able to pivot and adapt to changing markets and technologies is crucial for business success. This requires a level of flexibility in both strategy and execution. Be willing to adjust your strategy and execution processes as needed to stay ahead of the competition.
Empower your team:
Both strategy and execution require a dedicated and empowered team to be successful. Encourage and empower your team to take ownership of their work and contribute ideas to improve both strategy ane execution.
Conclusion
In business, finding the right balance between strategy and execution is crucial for success. While a solid strategy is important, it's the execution of that strategy that ultimately determines success or failure. Apple's failed strategy for Apple Maps highlights the importance of effective execution, while Amazon's successful strategy for same-day delivery demonstrates the benefits of a well-executed plan. By prioritizing both strategy and execution, communicating effectively, embracing flexibility, and measuring progress, small business owners and entrepreneurs can strike the right balance and achieve success. Want to enhance your business strategy, execution, and fundraising? Stay tuned for our blogs.