What is a Business Strategy?
A business strategy is a company or organization’s plan for how it will achieve its long-term goals and objectives. It outlines and provides guidance for the strategic initiatives an organization will pursue to create value for the organization and its stakeholders.
The business strategy is informed by the company’s mission and vision, and in turn informs individual product visions. An organization inspects and adapts its business strategy based on feedback gathered from delivering product Increments.
The relationship between Mission/Vision, Business Strategy, Product Vision, and Product Strategy
The business strategy typically includes:
- Strategic goals and objectives for the organization as a whole
- The markets and customers that the organization should target with its products
- The value proposition that the organization has for its customers, employees and partners
- The investment the organization is willing to make in support of its objectives
- The stage a product is in its life cycle
Senior executives in an organization are typically accountable for creating the organization’s business strategy. The content and format of the business strategy varies from organization to organization and is highly context dependent. Some organizations engage in rigorous planning, resulting in detailed information. Whereas, other organizations do not appear to engage in any strategic planning. The planning context is very different in a large organization with a broad product portfolio than in a smaller, one-product company. In fact, a one-product company probably doesn’t need both a company business strategy and a product strategy.
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