HBR On Strategy Strategy Doesn’t Have to Be Complicated
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Sep 6, 2023 Strategy doesn't have to be complicated. Focus on creating value through customer and employee satisfaction. Profits come from visualizing the value you create. Learn about willingness to pay and sell, and how Best Buy's turnaround increased value.
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Strategy Is Creating Value
- Strategy is simply a plan to create value for a company.
- It revolves around how a company plans to generate value, not just financial results.
Value Stick Concept
- Value is the gap between what customers are willing to pay and what employees accept to work for.
- This difference is visually represented by the 'value stick' showing value creation.
Understanding Willingness to Pay
- Willingness to pay is the max price a customer would pay before rejecting a product.
- Customer value is the gap between this willingness and the actual price paid.