The ability to think based on the principles of the strategy is called strategic thinking. It enables the evaluation of our resources to better identify opportunities. There are many strategy terms that are related to strategic thinking. A few examples include Strategic Planning, Strategic Analysis, Blue Ocean Strategy, Red Ocean Strategy, Business Strategy, Organizational Strategy, and Marketing Strategy. In the past, strategic thinking was mostly used for military purposes. However, in modern times, the strategy refers to a much broader field that improves the chances for success in the personal and business world. Sun Tzu, the author of The Art of War, one of the pioneers of strategic thinking in ancient times, believed the best strategy is winning without directly getting into the war. A few books related to strategic thinking are discussed here.
Blue Ocean Strategy
This book was written by W. Chan Kim and Renee Mauborgne. This book focuses on competition as a driving force for strategic decision making. The authors divide the business world into two spaces called Red and Blue Oceans. The Red Ocean includes all well-established companies with known markets. In the Red Ocean, the borders of the industry are defined, and all competitors know the rules of the game. The goal of the competitors is to increase their market share and eliminate competitors. On the other hand, the Blue Ocean are industries that do not exist and as a result they do not have a defined market. In this strategy, demand must be created by the company leaders.
Built to Last
This book was written by Jim Collins and Jerry Porras. In this book, the authors select a number of top companies called Visionary Companies and study their characteristics. A few criteria were used to select these visionary companies. Are they dominant in their industry? Are other businesses admire them? Have they created a lasting impact on the world? How many CEOs have they changed? How many product life cycles they had? Are they founded before 1950?
Good to Great
This book was written by Jim Collins. The main concept of the book is that satisfaction with the good deprives you of the excellent. This should not be mistaken for perfectionism. The author defines high standards and differentiates them from good standards. A personal virtue that Collins talks a lot about in his book is discipline.