What Is Strategy? It’s a Lot Simpler Than You Think

What about the cost of making the Job a better Job? That will also redistribute the value -- from company to employees. We will need to calculate the difference between 'what if we pay extra to the employees' vs 'what will I spend to create a better working environment or culture'

Usefulf. If think my successful business ideas were based on value creation for customers or biz

great content

There is à video from this same channel entitled: Strategy is not a plan 😂😂

Coffee at Dunkin Donuts is crap! Brew your own - your "customer delight" will be much higher :)

Strategy is a plan to create value.
1. Not focus on profit
2. About looking forward to planning for the future
3. Building value for customers, employers, and suppliers
4. Value = difference between willingness to pay (customer) and willingness to sell (supplier)
5. How do I raise willingness to pay? Product Quality, Product Complement, Network Effects
6. How do I lower the willingness to sell? Provide better working experience as a trade-off

For e.g. Best Buy, increase WTP by offering customers with faster delivery directly from BB neighborhood stores, utilizing BB stores as warehouse

Fantastic explanation!!!!! Many thanks!!!!!

So value is the result of immaterial and subjective appreciations of customers and employees

It takes money to make money that's a mother's love
Most people don't know how to give people or opportunities for the children they are
.....😊 Next thing you know adults eat adults

The explanation is perfect. Understanding strategy starts with these foundations. I would just like to add something because I think welliness to sell doesn’t rely solely on compensation, it varies from a company to another. This could be entirely true if it’s a consulting firm where up to 60% of the revenue is spent on compensation but for other firms, like manufacturing firms, you just can’t apply the same logic cause the part of main costs are way higher than compensation and the perspective to create value decreasing wellinness to pay is comme merely different.

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I had to chuckle at this to be honest. One of the key points here is to try and pay employees less.....so that the 'company' makes more money. Well those people ARE the company! They create MOST of the value. Investors also help to create value but let's not forget that an employee is also an investor. They invest their time, talent and energy. Why should they be squeezed in order to benefit traditional investors i.e. shareholders? This is faulty thinking in my opinion. The goal should be to share financial rewards evenly across all value creators. Not skewed to shareholders.

Agree. We overcomplicate things. How do we increase the absolute amount of sales substantially, without reducing gross profit, or wrecking the company?

Love the video but have a different opinion on one point: What customer value is. I see it from a customer's point of view: If I pay $100 for something, how much value will I realize over and above that inital investment? Buying something is a sunk cost, the value is in what I get out of the investment. What Prof Felix described to me (value stick) is really a price stick, the range in which a seller and buyer can potentially agree on a price.

Felix, let me disagree, a strategy is not a plan. Strategy is about how-to achieve something - the story if you like. And a plan is about the what, where, and when - more like the chapters of a book.

Simple & clear explanation😀

Absolutely stunning! Thank you so much.

Anyone else finding it hard to grasp why they call it “lowering willingness to sell”? Why would a company lower its willingness to sell?

Shouldn’t it be “increasing willingness to sell” from the point of view of the employee and the company?

I learn a lot within 20 mins and thank you so much.

Interesting but the employee analogies are horseshit. Typical thinking from a CEO-like person. No employee in Best Buy gives a shit about what store-in-a-store they work in. No greater love of the job is created there - any 'study' that proved this is flawed or wishful thinking and biased for the outcome they wanted to see. Just pay them more, FFS. The value you gain is better and more loyal employees. This equates to smoother functioning of the store and shopper satisfaction in the experience they receive.

🔥🔥🔥

I am a bit confuse with the chart as I expected to see the value for the other stakeholders (suppliers for example, general public as well)

I Love It, Unique selling Point. Customers believe the want to pay.

As its core strategy is a plan of action designed to achieve some specific goals. It involves making decisions to allocate resources and navigate tasks and challenges in order to reach desired outcomes.

The anticipation of starting my dream job in a couple of weeks thrust me into this journey... I started with optimization of the Game theory in in my career, then I stumbled on "Planning is not a Strategy" to wit; a strategy is a plan that is based on logic that is simple & can be tweaked(with a pre-established tweaking mechanism) when it is not working... Full circle moment... 🎉

Can anyone explain to me why employee satisfaction played such an important part strategy and company result. I mean there are tons of successful company who treat their employee like shit and just offer good pay for them to stay or they just had no other choice.

And isn'5 this more of a tactic? If strategy is just a simple meaning of willingness to pay and willingness to sell then their would be no new strategy. Shouldn't it go into more detail on how to achieve it? For example, an airline new strategy to improve result, is to focus on low cost airline and optimizing cost to provide good enough service.

What the video said is the detail to actually how to improve willingness to pay and sell which is plan/tactic.

nice videoo

That's fantastic! One question I have is: in the example of decreasing willingness to sell by improving the job conditions, where does the financial investment get factored in? Because while not a one-to-one comparison to just increasing pay, it's still not free to implement.

Are we saying that Strategy is about Pricing?

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*It's knowing who your opponent is.
*It's knowing when to attack & when to defend.
*It's knowing the final outcome even before battle is on.
*It's the art of war and the key to success.
*It's everything to do with working out a formidable strategi. 📖kbb One Strategy first above all else 👍

Great video and points made. The only thing I would change is the word choices of "willingness to sell". Most of the examples didn't align well; their "willingness to sell" didn't decrease in a logical sense, at least not with the visual being used. Perhaps flip it to "Reluctance to Sell". If the reluctance to sell decreases (goes down) and the willingness to buy increases (goes up), basically stretching out the line more, this signifies an increase in value. Similarly, if reluctance to sell increases (goes up) and willingness to buy decreases (goes down), basically compressing the line, this signifies a decrease in value.

All strategy goes out the window when you force employees into experimental medical procedures to keep their jobs. After this it is a free for all and disengaged employees being very unpredictable will be hard to manage under any strategy tou try.

The comments section looks paid af. Tsk tsk.

haha

The reason why this seems so simple is because it is simplistic. Willingness to sell is impacted by many more things than satisfaction with the job - as any contact with contemporary economics should tell you. Such as cost of living pressures, to give the most obvious example, and straight out desperation, as well as personality and ethical considerations. Government policy to influence willingness to sell etc. You'd have to do better than this to sell a Harvard course to me. Like the relationship between an employee's willingness to sell their labour and their willingness to part with their money (say, to pay for an economics course) and the "value" perceived in the whole process.

A big part of strategy is a set of ideas that you are going to organize around to deliver value. Not surprisingly strategy is applied at many different levels, from the operating model and the way you organize, to individual initiatives. Project management vs Agile would be an example of two different strategies to solve at times the same problem. The problem with the very best strategies is that very few people seem to understand them ;)

I wish health care would look at value this way. Instead they focus on patient outcomes and ignore the willingness to sell side.

Not to mention, he's an asshole. He has no chance. None if them do at this point as far as I'm concerned.

After hour fan ❤

This is a superb content

Luckily I didn’t waste time at Harvard listening to those who never had to face the harshness of the markets. I spent time figuring it out and developing a concept of strategy until it worked. For 13 years now.
And it’s nothing these guys at Harvard say.

I love how you broke it down so we can understand. Love the content!

Awesome video. This is really about strategy, and as you also said, less directly on profit but I see it - more about the channels profit comes from. Very nice. Learnt.

Great talk. One question. How does this apply for an NGO though?

The value created is the future profitability, partenerships, fame, costumers and employes loyality. It is a language that is not understood by non professionals

He's really willing to pay $8 for a cup of coffee? Well, amazon that, and you're done, then. The value of one product is not only its price (yeah, 8 seconds in the whole presentation). With this mindset, you have crappy products at affordable prices, and yes, people are willing to pay. Take money out of this whole equation/presentation and there's nothing left to see. Not a good one.

oh jeez too much talk