Case Analysis

Summary of Strategy as Simple rules

Three approaches to strategy

The article speaks that there are three approaches to strategy and all of them are heavily dependent upon the operating environment of the business. In previous articles where we were more focused on highly established, structured and less volatile market, we learned the 1st two approaches where we went with tougher and complex strategies. In this article, we are in the scenario of a less established, and a business environment that is heavily volatile to technology and cannot be defined into a fixed structure for a longer period of time.

In a previously dealt article Strategy and the Internet, we had learned how the emergence of internet had affected the traditional method of working. Also in that article we came across the terminology “New market” and similar term has been used in this article. With the advancement of technology, there has been emergence of internet based companies popularly known as “Dot com” companies. Presence of these companies has divided the market into New Economy and Old economy. While Old economy is a traditional way of business it falls under the former two categories i.e. strategy via position and resources. But the new economy is highly volatile, more susceptible to change; therefore defining strategy in this environment is complex. The sustainability of competitive advantage through once defined strategy cannot be sustainable, therefore now arises the trouble of how frequently can one’ change and define new strategies for a volatile business that changes overnight with introduction of new technology. Therefore this article suggests that Strategy must be defined in terms of “Simple Rules” such that it keeps the business open to change, it provides the way to move ahead and every possibility to grab the available opportunity.

What is “Simple Rules?”

There are 5 different rules given in the article:

1. How-to rules: This refers to uniqueness in the process...