There are various ways to categorize strategic approaches, but one common framework identifies five forms of strategy.
Here are the five forms of strategy…
Corporate Strategy – This form of strategy focuses on the overall direction and scope of an entire organization. It involves decisions regarding which industries and markets to enter or exit, how to allocate resources among different business units, and how to create value across the organization as a whole.
Business Strategy – Business strategy is concerned with how a company competes within a particular industry or market segment. It involves decisions about how to position the company relative to competitors, what products or services to offer, how to differentiate offerings, and how to achieve a sustainable competitive advantage.
Functional Strategy – Functional strategy pertains to the specific activities or functions within a company, such as marketing, finance, operations, and human resources. It involves decisions about how to optimize the performance of each function in support of broader business objectives.
Global Strategy – Global strategy involves decisions about how to expand operations internationally and how to compete in global markets. It includes considerations such as market entry strategies, international partnerships and alliances, and adaptation to local market conditions.
Digital Strategy – In the modern business landscape, digital strategy has become increasingly important. It involves leveraging digital technologies and capabilities to achieve business objectives, such as improving customer experiences, optimizing operations, and driving innovation.
These forms of strategy are interconnected, and effective strategic management often requires alignment and integration across all levels of strategy within an organization.