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HBR On Strategy

The Difference Between a Plan and a Strategy

May 3, 2023
11:54

Podcast summary created with Snipd AI

Quick takeaways

  • Strategy prioritizes competitive positioning and coherent action, while planning focuses on controllable activities.
  • Southwest Airlines' success exemplifies strategic differentiation through cost leadership, emphasizing the value of strategy over planning.

Deep dives

Difference Between Strategy and Planning

Strategy is described as an integrative set of choices that position a company on a playing field where it can win, based on a coherent theory of action and competitive positioning. In contrast, planning often lacks coherence, focusing on individual activities such as hiring, launching products, and cost control. While planning may provide a sense of comfort due to controllability, a successful strategy requires accepting uncertainties and aiming for strategic outcomes that involve customer preferences.

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