Introduction - How Business Strategy Is Being Transformed
Every intelligent being will agree that strategy is as old as man himself. Johnson (et al, 2008) in his book, Exploring Corporate Strategy, defines strategy as “the direction and scope of an organization over the long term, which achieves advantage for the organization through its configuration of resources within a changing environment, to fulfil stakeholder expectations.” That definition suggests that every strategy is a plan or set of actions designed to achieve long-term goals and objectives which is achieved by allocating resources and responding to environmental opportunities and threats. So, there has always been strategy even by the ancient people of old to amaze wealth or gain economic advantage.
Let me take you a bit backward to see how strategic thinking evolves over time.
The Strategic Limit in the Ancient
The Phoenicians from the ancient cities such as Tyre and Sidon, developed a strategy that was centred on maritime trade across the Mediterranean. They built a strong fleet of ships for long-distance trade, established colonies and trading posts to secure trade routes and produced high-value goods such as purple dye, glassware and timber, and generated huge profit from the trade.
During the Han Dynasty, China developed trade routes connecting East Asia to Europe and the Middle East, known as the Silk Road. They controlled and protected trade routes using military presence making it possible for China to sell what was then considered luxury goods such as silk, spices, and porcelain for high value to other nations.
The Rockefeller’s Standard Oil Company (founded in 1870) became a dominant force in the oil industry through systematic control of every stage of production – took actions that made it easy to acquire more refineries thereby reduced their cost of production was a business strategy in action.
One thing is worth noting in the three examples of strategic development I cited above; each strategy focused on gaining control over key resources — materials, routes, or production preventing smaller businesses (or nations) from been able to exercise economic dominance.
The New Strategic Frontier
As could be seen in the cases of the Phoenicians, the Han Dynasty and the Rockefeller’s, strategic planning revolved around capital, logistics, and market access. Today, data is the real thing, and agility is the new scale. The ability to adapt, experiment, and hinge; a capability powered by data insights—defines winners and losers. According to The World Bank’s Digital Progress and Trends Report (2023), countries and companies with advanced infrastructures enjoy up to 2.5 times higher productivity growth than those without – that is the “The Reality in Small vs Big Businesses” I talked about in of this article. Series of technologies has evolved in our time more than ever, that can be tapped by every business whether small or big – these technologies has removed barriers that could significantly hamper and kill the existence of SME in those days. Now, let me talk about four areas where every small business can benefit from the destructive effects of modern technologies.
- Digital Marketing and Online Presence: Technology allows small businesses to compete with larger firms through digital marketing and online branding. With the advent of social media platforms (Instagram, TikTok, LinkedIn) and ads, you can reach certain market niche and audiences. Having a website and SEO strategy will make your business appear in local or global search results.
- Data Analytics: With data analytics, you will be able to understand your customers, track performance, and make informed decisions. Tools such as Google Analytics, Tableau, or Power BI help track sales and customer behaviour – these will help you identify your best-selling products, your profitable customer segments, and seasonal trends.
- Automation and AI Tools: The destructive impact of modern technologies has tended towards AI powers. By automating your business, your operating cost will be significantly reduced and in turn improves efficiency. You can read more about how to systematically automate your business by building a web application in the blog article “”.
- Cloud Computing and Collaboration Tools: Prior to the emergence of covid-19, many will argue that remote working would be a disaster to business organisations. Thanks to modern technologies – remote working is no longer a mirage, it is real. With cloud computing, your small teams could work more efficiently and flexibly without large infrastructure costs. Tools, such as Google Workspace, Microsoft 365 are readily available to you.
Being aware is a strength but awareness without diligent action could be worse than self-destruction. Your intent is to grow your business, and you know all the tools required to achieve your goals but getting those tools and using them well require lots of diligence. The report of McKinsey’s Technology Trends Outlook 2024 shows that 70% of executives consider AI and machine learning essential for competitive advantage, yet fewer than 20% believe they have the talent or culture to fully leverage them. The gap between adoption and absorption—owning technology versus understanding how to use it strategically—is now one of the defining challenges of modern businesses. If you fall within this category and this is impacting on your business, you are not alone – this topic will be covered in one of this blog post or series. In the meantime, you can at MICB TECH LIMITED for free guidance.