The Strategy: Why Doing Things Better Isn’t Enough

In today’s business landscape, companies have become prisoners of their own efficiency metrics—blindly optimizing processes while losing sight of true competitive advantage. They use tools like Total Quality Management (TQM), Benchmarking, and Re-Engineering to cut costs, speed up production, and boost quality. However, while these methods help in the short term, they rarely create a lasting advantage. Why? Because competitors can copy them. Likewise, Africa’s immense potential, highlighting its growing population, vast natural resources, and untapped economic opportunities. This reinforces the key argument at macro level: lasting success comes not just from efficiency, but also from harnessing unique advantages—much like businesses that innovate strategically to unlock future growth.

This is where strategy comes in. Michael Porter, a leading expert on business strategy, explains that real competitive advantage doesn’t come from doing things better—it comes from doing things differently.

Why Efficiency Alone Isn’t Enough

Imagine two restaurants on the same street. Both improve efficiency—faster service, better ingredients, lower prices. Soon, they look the same, compete on price, and profits shrink. This is what happens in many industries. Companies focus so much on operational improvements that they forget to stand out. History shows this pattern. In the 1980s and 1990s, businesses rushed to adopt TQM and re-engineering. These tools helped cut waste and improve quality, but since everyone used them, no one gained a real edge. Like an arms race, the more companies improved, the harder it became to stay ahead.

The Danger of Copying Competitors

When companies chase the same goals—lower costs, higher quality, faster delivery—they end up looking alike. This is why many industries face brutal price wars. A famous example is the U.S. auto industry. For decades, General Motors, Ford, and Chrysler dominated with efficient mass production. However, when Japanese carmakers like Toyota entered the market, they didn’t just copy—they redefined competition with lean manufacturing and Just-In-Time inventory. Toyota’s success wasn’t just about efficiency; it was about a different way of competing. While American automakers focused on making more cars cheaply, Toyota focused on eliminating waste and improving quality. This strategic shift changed the entire industry.

What Real Strategy Looks Like

True strategy means making clear choices about how to compete. It’s not about being the best at everything—it’s about being unique in a way that customers value.

IKEA’s Trade-Offs

IKEA sells stylish, affordable furniture, however to keep prices low, it makes trade-offs:

1. Limited product designs (fewer options than high-end stores), 2) Self-service (customers assemble furniture themselves), 3) Large, out-of-town stores (saving on prime real estate costs).

If IKEA tried to offer custom-made luxury furniture, it would lose its low-cost advantage. Strategy means choosing what not to do.

Vanguard’s Focus

Vanguard, a top investment firm, succeeds by specializing in low-cost index funds. Unlike competitors that offer expensive, actively managed funds, Vanguard keeps fees minimal. This focus means giving up high-profit services—but it attracts cost-conscious investors.

How Companies Lose Their Way

Many businesses start with a clear strategy but drift over time. They add new products, chase trends, or copy rivals—until their original advantage fades. For example, some smartphone makers keep adding features to match Apple or Samsung. However, without a unique position, they end up in price wars. Apple, meanwhile, stays successful by sticking to its premium brand—even if it means higher prices and fewer models.

How to Get Back to Strategy

To get back to strategy, companies must first define a clear position by asking what truly makes them different—whether it’s being the low-cost leader, the premium luxury choice, or a specialist in a particular niche. Once this position is established, every aspect of the business—from pricing and marketing to hiring decisions—must align with and reinforce this strategic direction. Perhaps most crucially, organizations need to resist the temptation to chase every opportunity that arises, as saying “no” to distractions is essential for maintaining strategic focus and strength. This disciplined approach ensures that all efforts work together to build and sustain a competitive advantage rather than diluting the company’s unique value proposition.

The Role of Leadership

Good leaders don’t just push for efficiency—they enforce strategic discipline. They make tough choices —even when it means sacrificing short-term gains—to preserve long-term strategic advantage. Leaders must actively prevent the company from slipping into generic “me-too” competition where differentiation disappears. Perhaps most importantly, they need to regularly reassess the strategy to confirm it still aligns with evolving market conditions and customer needs, making adjustments when necessary to maintain relevance and competitive edge.

Final Lesson: Strategy Beats Efficiency Every Time

Efficiency keeps you in the game, but strategy wins it. In a world where competitors can match your speed and costs, the only lasting advantage is being different in a way that matters. As the ancient strategist Sun Tzu said: “All warfare is based on deception.”, means the greatest victories come not from direct confrontation, but from choosing the battlefield that plays to your strengths. In business, this means finding your unique position—the intersection of what you do exceptionally well and what the market genuinely values. The Bottom Line: Don’t just chase efficiency. Choose a unique path—Build your competitive advantage around what makes you distinctive, not just what makes you faster. True business success isn’t about perfecting someone else’s playbook—it’s about writing your own. When you align your unique strengths with unmet market needs, you don’t just compete; you lead. That’s how you build a business that lasts. So ask yourself: Is your concern running faster in the same race as everyone else—or are you running a race only you can win?

WUM