Strategy is about making choices. This much is already known.
But, what really qualifies as a valid strategic choice?
A strategic choice is a valid one if its opposite does not look stupid!
Example: Consider a global wealth management business “Where to Play” choice below:
To target wealthy individuals who wanted and were willing to pay for comprehensive wealth management services.
Is the above a valid strategic choice?
No! But, why?
Because the opposite of the above choice would be:
To target poor individuals who don’t want and aren’t willing to pay for comprehensive wealth management services.
No competitor would make such a stupid choice! Hence, each competitor would make the same non-stupid choice as this company. So, there will be no differentiation at all!
Read more here.
A strategic choice is a valid choice if its opposite does not look stupid!