More and more companies are looking at what the nearest competitor is doing and trying to replicate that or better that. That is not strategy. Strategy is about occupying a unique position in the mind of the customer. Offering a unique value proposition. Understanding where will the company create substantial value? Where will the company have a very strong competitive advantage?

Strategy means making clear cut choices about how to compete. You cannot be everything to everybody. You need to make a choice. Are you going to compete on the basis of low cost or based on differentiation? If differentiation, then product or service (customer relationship). [e.g.: “own the standard” kind of product-based differentiation strategy like Microsoft or “own the customer relationship” based differentiation strategy like GE].

While there is a huge focus and understanding on operations excellence in the small and midsized companies in India, the focus on creating a unique competitive position (critical to long term success) certainly can be increased.