Jonathan Li's Blog

TACTIC

VS

STRATEGY

I feel that this concept has brought upon the most impact on my view of business so far. This bias notion may be brought about by clarification of these words and their definition within the business world. Prior to this class, tactic and strategy were one in the same; its literal meaning held no difference in my vocabulary. However, with the accurate definition and examples,  I am more aware of its properties and usages.

Tactic
– Short term and addresses a very specific object

Strategy
– Aims at achieving a long term effect over the company and refers to the overall goal

With this knowledge we can implement “Porter’s 5 Forces” to help evaluate the “attractiveness” of a company.
This includes:
Supplier Power
– The supplier can selectively choose which stores are allowed to sell their product, at what price, and at what time
Threat of Substitution
– Other companies may find a way to produce your product through other means making their product cheaper and more effective in turn to to sell
Buyer Power
– Dependant on the buyer and what he/ she wants
Barriers to Entry
– Patents and economy (the greater the quantity the more efficient it is to produce the same product)

In the last class, we discussed the importance of implementing these  ideas on our certain product/ services. Though this activity, my knowledge was broadened and I was given more insight regarding the multiple aspects of how Tactic and Strategy affects the rivalry and thus in turn affects the method of evaluation for a certain company (Porter’s 5 Forces). As well as this, I feel that these two words have put a new meaning in marketing as it is related yet distant in its meaning. Tactic are short term ideas or implementations that are to create or address a certain problem. (ie. Starbucks begin to sell mugs, chocolate bars, and sandwiches). Strategy, however, is addressing a problem in a wider scale and in regards to the bigger picture. (ie. Starbuck enforces their employee create an atmosphere where customers feel welcomed; thus creating a long lasting image for this company)

In this way the differences between Tactic and Strategy is noticeable and critical when evaluating a companies effectiveness, in terms of marketing and sales.