Can we apply strategy lessons from business world to politics?

Sreekanth Prabhu, Professor at PES Institute of Technology (Bangalore) applies the lessons. Actually, subject of Strategy evolved from politics/government only when they faught wars with each other. Much of the historic thinking on strategy connects to how certain politicians/kings fought wars using strategy.

As per Porter, strategy is the creation of a unique and valuable position (strategic position) gained by doing a different set of activities compared to rivals. These activities need to be deliberately chosen and executed in alignment with the position. There needs to be a fit among the activities, and they should create a company’s strategic position working together.

A company may serve few needs of large number of customers or serve broad needs of few customers or serve broad needs of many customers in a narrow market. Any company trying to do more than one of these will only be straddling between multiple positions. The key point about strategy is to recognize the need to make careful choices and stick with them for a reasonable amount of time. Here it is also more important to choose what not to do. For example, a luxury airline expanding into budget routes only confuses its customers, employees and its entire value chain. Sustainable strategic positions need trade-offs.

How do we go about creating strategic positions? Porter talks about three kinds of positions: variety based, needs based and access based.

The author applies the insights to the current Indian govt..

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