What is a good strategy? Obviously, the ones that work! How do I know that a strategy will actually work, given the assumption that our surrounding variables will not significantly change to render an apparently good strategy unusable? The answer is, a ‘good’ strategy can be said to be ‘good’ only after it is applied and we can see the results. So, until you put a strategy at work, judgment would be extremely difficult. What a point!
Well, at least theoretically, the challenge is not formidable. You have all the variables and options at table, based on which you decide on a game-plan. In reality, the direction and magnitude of change in variables may have unforeseeable impact on the success of option(s) chosen. In ‘90s, during the rise of dot com era, most companies were clinging to an apparently temporary state of ‘loss’ situation with a long-run hope of making profit. They thought that, defending market share would lead to profit when good times would show-up. Well, that did not happen in reality except for amazon.com . So for others, the same strategy was proved to be a ‘bad’ strategy which seemed to be a ‘good’ strategy for amazon. In India, Tata Nano offered a car at an attractive price point, yet could not even beat the market share of Suzuki-Maruti, the brand that was initially afraid of Nano.