Strategy is a plan to create value. 1. Not focus on profit 2. About looking forward to planning for the future 3. Building value for customers, employers, and suppliers 4. Value = difference between willingness to pay (customer) and willingness to sell (supplier) 5. How do I raise willingness to pay? Product Quality, Product Complement, Network Effects 6. How do I lower the willingness to sell? Provide better working experience as a trade-off For e.g. Best Buy, increase WTP by offering customers with faster delivery directly from BB neighborhood stores, utilizing BB stores as warehouse

This is a super complement of "A Plan is Not a Strategy" by Prof. Roger, that I just watched. I have learned so much about Strategy within 20mins I feel like I have some powers at my disposal right now. Looks like I'll like to have a MBA for structured and consolidated knowledge.

@srinic9319

Жыл бұрын

I was just about to post this 😅 a plan is not a strategy but a strategy is a plan - 😭

@peacebakare

Жыл бұрын

@Huy Phạm Quốc Really? So sorry about that. How can I help?

@durgaprasadvadlamoodi1271

Жыл бұрын

i agree, i just watched and explained very well.

@Anurag_Saxena

Жыл бұрын

@Huy Phạm Quốc me too. So I watched this video again and concluded that strategy is a "plan to create value". First Prof. Roger sounded incorrect to me. Then I re-watched Prof Roger and found his case study of Southwest explaining his points crystal clear.

@michaelwilliams2337

Жыл бұрын

Prof Martin's video is excellent and probably the only strategy video which really says what strategy is all about in under 10 mins. Felix Oberholzer-Gee's video breezes over the ferocity of competitive forces.

Amazing job creating this content - Core concepts simplified under 10 mins Hoping to see more content in this format.

Best content for a long time on youtube! Thank you for that HBR and Prof. Oberholzer-Gee.

Excellently and succinctly explained. Please put Mr. Oberholzer-Gee in more videos! Also, excellent visuals here!! Bravo!!!🏆

Brilliant. And you are an amazing educator. Great work, kudos to the production team. Top notch work!

Tons of value loaded video, It can't be simpler than this, so clear, with examples 🙏

This is amazing! I feel a lot smarter on the topic of strategy. I'm also aware enough that I need to learn so much more to be able to take advantage of this body of knowledge I just acquired. Thank you Felix!

Profound content. What a gift to be able to explain something so complex so simply. A true MBA in 10 mins

Excellent content! If you're looking for a 10min MBA, this the closest you could get to it.

@sergiomujica973

2 жыл бұрын

Exactly! I completely agree. It reminded me of some of my MBA classes.

@contemplore

Жыл бұрын

Also #personalMBA by Josh Kauffman. Combine with HBR and Economist guides. For more in business today, learn Economics, Computer science CS50, web3, Mathematical thinking, lateral thinking, design thinking, systems thinking..... And lessons from your specialization specific books/pods/courses/journals...

Thanks very much Havard, watching these videos really helps alot. It's kinda like we are on campus, i had to watch these episode 5 times to really get hold of WTP and WTS. Thanks.

Thank you! I like how straightforwardly you educate.

I love how you broke it down so we can understand. Love the content!

Anyone who tries to grasp what strategy is should start with this video. A big thank you to Felix Oberholzer-Gee and the HBR channel for sharing such high-quality content and insights 🙏

@teezfeelz-1716

Ай бұрын

Hi Adrienne, I found the piece a little confusing especially around willingness to sell. What Am I missing. Can you explain to me like you would a 10year old.

I am impressed by HBR consistency to release great video after great video👏

This is a valuable video, it's a gift for all of us. Thank you Mr. Felix Oberholzer-Gee.

Felix, you have just increased your value by increasing the willingness to pay and decreasing the willingness to sell! Awesome real life example!

Wow! The content of this video is really good. I wish there we're more professors and intelectuales that could talk about business like this, without the jargon and mambo jumbo that most business teachers use.

Can we see this in real world" Wow, that question and answer really made the difference for me, you created a real value guys. Thanks

Really great video... Clear and concise lesson.

This is an excellent explanation. Thank you.

Beautiful video. Stick diagram makes it lot easier to understand. Example of Best Buy suits well too. Would love to read more.

The anticipation of starting my dream job in a couple of weeks thrust me into this journey... I started with optimization of the Game theory in in my career, then I stumbled on "Planning is not a Strategy" to wit; a strategy is a plan that is based on logic that is simple & can be tweaked(with a pre-established tweaking mechanism) when it is not working... Full circle moment... 🎉

Absolutely stunning! Thank you so much.

That's fantastic! One question I have is: in the example of decreasing willingness to sell by improving the job conditions, where does the financial investment get factored in? Because while not a one-to-one comparison to just increasing pay, it's still not free to implement.

Bravo!! I love how you made it so simple to understand the concepts!

Great and clear explanation. Thanks for sharing.

Simple & clear explanation😀

This is high-value content! So impress. Thank Prof.

I learn a lot within 20 mins and thank you so much.

its a plan to create value. the beginning phase to achieve a benefit (a measurable outcome). determining optimal customer willingness to pay/price. determining willingness to sell for employees/compensation. the middle between the opposing position reflects company success.

It's the best 10 mins about strategy!

The explanation is perfect. Understanding strategy starts with these foundations. I would just like to add something because I think welliness to sell doesn’t rely solely on compensation, it varies from a company to another. This could be entirely true if it’s a consulting firm where up to 60% of the revenue is spent on compensation but for other firms, like manufacturing firms, you just can’t apply the same logic cause the part of main costs are way higher than compensation and the perspective to create value decreasing wellinness to pay is comme merely different.

@vinatram9930

3 ай бұрын

you have a point.

My next 5 years strategy ready now.... But I will never disclose right now.... Focus on improving myself regularly.......

Interesting topic. It's great to learn about strategy because it's easy to get wrong about this concept.

Great video, liked it so much. Thank you! Look forward to find more like this.

Thank you for the explanation. Very much appreciated HBR.

Great video! Thanks for sharing your work!

That was one of the most value pack videos I’ve ever watched

I want to take his class. I understood half of what he said but was engaged the whole way

Product/Customer experience and employee experience are the two foundational factors. Sounds simple but as the layers of management there is more and more Vaseline on the lens when it comes to observing and measuring the quality of these experiences.

Excellent! Strategy is a Plan to Creat Value. This is where I differ with Professor Roger piece on Strategic Planning where he completely disconnects both.

OMG. That is the best damn explanation of strategy and value I have EVER heard !!!

Fantastic explanation!!!!! Many thanks!!!!!

Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.

Hi ROFESSOR OBERHOLZER-GEE,I'm just in "Business Strategy" class online, good to see you here

Very good explanation! Thank you

Great discussion on this topic! Thanks!

Love the video but have a different opinion on one point: What customer value is. I see it from a customer's point of view: If I pay $100 for something, how much value will I realize over and above that inital investment? Buying something is a sunk cost, the value is in what I get out of the investment. What Prof Felix described to me (value stick) is really a price stick, the range in which a seller and buyer can potentially agree on a price.

One’s think the more employees are engaged, the more they’ll be “willing to sell.” This phrase/concept of “willingness to sell go ‘down’” seems really about “enlarging” the portion/likelihood of willingness to sell instead of the actual level of willingness to sell. - Correct me if I am wrong.

Amazing...could not have learnt more within 10 minutes

First, i watched prof Roger's video on strategy. Then, I watched this video twice and concluded that strategy is a "plan to create value" and Prof. Roger sounded incorrect to me. Then I re-watched Prof Roger and found his case study of Southwest explaining his points crystal clear. In plans, even deviations from goals are anticipated and there's plans in advance to fix them. In strategy, one isn't sure what sort of deviations come ahead and there's no plans in advance to fix them. One needs to twist and turn the strategy as and when the deviations arise.

Excellent explanation. Go straight to my brain. Thank you...............................🙏🙏🙏🙏

Excelente explicación. Gracias!

Great video and points made. The only thing I would change is the word choices of "willingness to sell". Most of the examples didn't align well; their "willingness to sell" didn't decrease in a logical sense, at least not with the visual being used. Perhaps flip it to "Reluctance to Sell". If the reluctance to sell decreases (goes down) and the willingness to buy increases (goes up), basically stretching out the line more, this signifies an increase in value. Similarly, if reluctance to sell increases (goes up) and willingness to buy decreases (goes down), basically compressing the line, this signifies a decrease in value.

simply explanation and easy to understand

amazing video, though even more when you questioning about this for a whole month. Terima kasih 🙌

… a very interesting, informative and impressive video. Thanks a lot.

A big part of strategy is a set of ideas that you are going to organize around to deliver value. Not surprisingly strategy is applied at many different levels, from the operating model and the way you organize, to individual initiatives. Project management vs Agile would be an example of two different strategies to solve at times the same problem. The problem with the very best strategies is that very few people seem to understand them ;)

@someonenamedbob

11 ай бұрын

I"m curios what do you mean by agile?

@dougr550

11 ай бұрын

@@someonenamedbob Agile is a software development philosophy for addressing the uncertainty that exists in terms of what to do and how to do it when building software. This philosophy has also been adapted for use in other settings, but is at its heart rooted in Lean management.

@someonenamedbob

11 ай бұрын

@@dougr550 Oh that I've heard about it before, don't know much about it though.

This is more tactics than strategy. Marketing strategy involves deciding which market segment - geography and demography - to play in, which customer subgroups to target, which products to sell, which products to use as decoy, which segments/customers/products to sacrifice, what kind of intel to gather, which competitors to sabotage or acquire, which law or regulation/policy to lobby for or against, etc.

@monicarenee7949

6 ай бұрын

All those things are just to get to his first point “willingness to buy”. He’s making it simple. Your list are just ways to get there.

This is unbelievable. No one has ever strategy this way!

Just finished his book on strategy.Totally recommend it.

@philippededeken4881

Жыл бұрын

He's ignorant about the topic. What a waste of time.

@mrbonbonist

Жыл бұрын

@@philippededeken4881 your comment is a waste of time.

So much insight really helpful and amazing

Superb!! Thank you very much 👍🏽

This commentary is far superior to the explanation offered by the other professor with whose language I took issue with. I still say Strategy is the why and the vital plan to achieve it's likely success or to optimise the desired outcome is the what, which, where, when, who and how.

Thanks HBR for such helpful videos

i love this is in direct difference to strategy is not a plan via HBR...

Great content. Thanks HBR

Very good sharing!. It is simple and powerful! thanks

Thank you professor

Amazing content. It's like being at Harvard Business School! This quality teaching should be accessible to everyone in the world! Thank Prof. Felix!

I Love It, Unique selling Point. Customers believe the want to pay.

Strategy is not complicated, it's all about a plan to create value. customers are willing to pay for what they want

This is brilliant

Great content .. thanks for sharing this video...😁

A lot to think about. Thank you

Big thank you!

Inspiring content! I am gonna use this concept into real life, thanks!

Thank you sir ❤️

Maybe I'd missed, but where is the influence of rest of the expenses apart from labour cost in the suggested model?

@harvardbusinessreview

2 жыл бұрын

Observant question. To keep the video under 10 minutes we focused on 2 out of the 3 value levers (customers and employees) but sidestepped suppliers (though they do get mentioned in the Best Buy example near the end). But you are right that they're a part of the model, along with other costs. Felix covers those in more detail in his book in the description, or you can start here where it's also well covered: hbr.org/2021/05/eliminate-strategic-overload. Thanks for watching!

This is interesting, although I'd suggest if you need to explain willingness to buy/willingness to sell, it highlights that those terms are not clear or intuitive enough to be effective. The explanation was effective and made an impact, but the original terms remain ambiguous.

Excellent video! Thanks for sharing.

What about the cost of making the Job a better Job? That will also redistribute the value -- from company to employees. We will need to calculate the difference between 'what if we pay extra to the employees' vs 'what will I spend to create a better working environment or culture'

Thank u for sharing ☺️👌🏻

As its core strategy is a plan of action designed to achieve some specific goals. It involves making decisions to allocate resources and navigate tasks and challenges in order to reach desired outcomes.

So value is the result of immaterial and subjective appreciations of customers and employees

Thank you Felix

In this video, Felix Oberholzer-Gee explains that strategy is a plan to create value and that a company's financial success is the result of its strategy, not the starting point. He describes value as the difference between willingness to pay and willingness to sell, which is split between customers, employees, and the company. The ways to increase willingness to pay are through product/service quality, complements, and network effects. The two ways to attract talent are to pay more or make the job better. Although both methods create value, paying more shifts value from the company to the employees, while making the job better lowers willingness to sell.

@Dakid015

8 ай бұрын

Good summary! Thanks!

This is a great video!! Pricing 101

Thanks tricks and strategies for success, always good luck

This is gold

The reason why this seems so simple is because it is simplistic. Willingness to sell is impacted by many more things than satisfaction with the job - as any contact with contemporary economics should tell you. Such as cost of living pressures, to give the most obvious example, and straight out desperation, as well as personality and ethical considerations. Government policy to influence willingness to sell etc. You'd have to do better than this to sell a Harvard course to me. Like the relationship between an employee's willingness to sell their labour and their willingness to part with their money (say, to pay for an economics course) and the "value" perceived in the whole process.

This is excellent.

Great vídeo,man, keep them coming🇵🇹🇵🇹🇵🇹🇵🇹😁

This is a superb content

Very good video - well done

So insightful tnx

THANK YOU

Felix has always bern awesome!

What a production