Jérôme Barthélemy : The four fundamental ways of “strategizing
Before formulating a strategy, you need to ask yourself two questions:
- How predictable is the environment?
- how malleable is the environment?
Depending on the answers to these questions, there are four ways of “strategizing”.
1. The classic approach is recommended when the environment is predictable but not malleable. Size is the key to success. Mars is a good example. Its flagship products were launched in 1923 (Milky Way), 1930 (Snickers), 1932 (the Mars bar), 1941 (M&Ms) and 1979 (Twix). In a relatively stable sector, Mars has been investing for decades to benefit from economies of scale and experience superior to those of its competitors.
2. The adaptive approach is recommended when the environment is neither malleable nor predictable. In such cases, agility must be given priority. Zara is a good example. Rather than trying to predict what clothes will be popular with the public, it constantly adapts to their desires.
3. The visionary approach is recommended when the environment is both predictable and malleable. The key to success is speed. You have to be the first to seize emerging opportunities. In the mid-1990s, it was clear to a company like UPS that online sales were the future of logistics. The American company invested close to a billion dollars to become the world's first online retailer.