Business Strategy Fundamentals

Today's episode will make you better at developing a strategy, and evaluating other people's strategies. Roger Martin is one of the world’s most sought-after experts on strategy, and the author of "Playing to Win", one of the most popular (and most actionable) books on learning the art of strategy. He’s written extensively for the Harvard Business Review; consulted for dozens of Fortune 500 companies, including P&G, Lego, and Ford; and written 11 other books on strategy, leadership, and clear thinking. In our conversation, we cover: 🔸 The five key questions you need to answer to develop an effective strategy 🔸 How most companies get strategy wrong 🔸 How to avoid “playing to play” instead of playing to win 🔸 Real-world strategy examples from Figma, Lego, Procter & Gamble, and Southwest Airlines 🔸 Why you need to either differentiate or be the lowest cost 🔸 Shortcomings of current strategy education 🔸 Much more Listen now 👇 - YouTube: https://lnkd.in/gTyPQZus - Spotify: https://lnkd.in/gKWWm-Fp - Apple: https://lnkd.in/gCing92Q Some key takeaways: 1. Strategy is an integrated set of choices that compels a desired customer action. 2. Great strategists aren’t born; they’re made through practice. Even if you see yourself as more operational than strategic, remember that strategy is a skill that anyone can develop over time. Just like any skill, it improves with practice. 3. To win in business, you must be either a low-cost provider or differentiated. If you’re neither, competitors can “bully” you and take market share. Two questions can help you figure out whether you’re winning in these ways. First, could you match competitor price decreases and remain more profitable than them? If not, you’re not a low-cost provider. Second, could customers essentially flip a coin between you and a competitor? If so, you’re not differentiated enough. 4. Use the Strategy Choice Cascade to define and implement effective business strategies. This framework consists of five essential questions: a. What is our winning aspiration? Clarify what you aim to achieve with your strategy. This guides all subsequent decisions and actions toward a clear objective. b. Where will we play? Select specific markets, segments, or niches where you will compete. Focus is crucial; trying to be everywhere can dilute effectiveness. c. How will we win? Determine your competitive advantage. You must either offer customers superior value or operate at a lower cost than competitors in your chosen areas. d. What capabilities must be in place to win? Identify and build capabilities that are critical for executing your chosen strategy effectively. These should be distinctive strengths that set you apart from competitors. e. What management systems are required to ensure the capabilities are in place?

Most enterprises treat quantum computing as a nerdy R&D curiosity. A mistake. Critical business problems, which are fundamentally constrained by classical computing today, are likely to be solved by 2030. With a hybrid combination of high performance computing and quantum approaches. Three sectors stand out: Pharma, Life & Material Sciences: Drug discovery is essentially a molecular simulation challenge. Classical systems approximate. Quantum systems are designed around quantum mechanics itself. Thus, it is not just about faster research, but the ability to model molecular interactions with higher fidelity. For protein folding, compound optimization, personalized therapeutics. Reaching quantum advantage first in pharma won’t merely accelerate pipelines — it will redefine them. Financial Services: Banks, insurers, stock exchanges operate enormous optimization, transaction or probability engines. E.g., for risk simulations, or fraud detections. Many of these problems scale exponentially in complexity. Quantum algorithms are particularly promising where classical Monte Carlo simulations hit practical limits. And, quantum computing is becoming a cybersecurity challenge. Post-quantum cryptography migration will likely be one of the largest infrastructure transitions the financial sector has seen for decades. Complex Logistics & Supply Chains: Airlines, shipping companies, manufacturers, energy grids, and global retailers all face combinatorial optimization problems. These systems already operate at scales where small efficiency gains create major business impact. Enterprises operating in these segments should get „quantum-ready“ now: • Identify quantum-relevant business problems • Work with quantum partners who advocate an open approach • Build internal quantum literacy • Develop hybrid workflows • Prepare your security stack for the post-quantum era. Additionally we need quantum computing companies delivering at production scale. IQM Quantum Computers calls this Production Quantum. Which is the delivery of a production-ready full stack solution rather than just a scientific solution for a specific problem. This is the same pattern we saw with #AI. The competitive gap formed before the technology fully matured. #Quantum readiness is becoming a strategic capability and critical timing question. For an increasing number of enterprises. Not only for R&D departments.

I think there’s a common misunderstanding about what strategy actually is—especially when it gets disconnected from how a business really runs. In many organizations, strategy turns into a long-term planning exercise: set the targets, capture the vision, build the deck... but then the deck just sits on a shelf, disconnected from the decisions that actually drive outcomes. Strategy is NOT the same as a plan. In my eyes, strategy is about making deliberate choices—and backing those choices with investment. It’s deciding where to compete, how to win, and where you’re going to put capital, talent, and time across the business. These deliberate choices matter even more in the AI era, where the pace of change is lightning fast and the stakes are crazy high. I’ve found the most useful strategy conversations start with questions like: - What business do we want to be in? - What industries do we want to serve? - What customer segments are we prioritizing? - How do we balance organic growth with inorganic growth, and combine them in ways that make sense? Importantly, the strategy team doesn’t run the business. Operating teams do. The role of strategy is to provide the framework and resource logic that guide execution, so that day-to-day decisions consistently reinforce the bigger picture. A strategy only matters if it drives clear choices and shows up in how you allocate resources and in the outcomes you drive. What’s one question every leadership team should ask when setting strategy?

Most quantum boardroom conversations end without an agenda. They end with a posture — "we're monitoring quantum developments," "we're taking it seriously". Neither statement produces a plan. The distinction matters because quantum creates three problem classes, each with a different urgency and a different cost of inaction. A generic posture misaddresses all three at once. The right response, for most leadership teams, has three parts. The first is to defend now. Post-quantum cryptography belongs on the enterprise risk agenda as a current priority. That means building visibility into cryptographic dependencies across the enterprise, identifying migration priorities, and mapping third-party exposure. This is the part of the quantum agenda that cannot wait. The second is to explore selectively. Most leadership teams do not need a wide portfolio of quantum pilots. They need a small number of focused efforts on high-value problems where the workload aligns with quantum's actual strengths — evaluated against the strongest available classical alternative. Each effort should be a targeted test: one specific problem, one clear classical benchmark, one honest evaluation. The third is to build options. For companies in simulation-relevant sectors — pharmaceuticals, advanced materials, energy — the right posture is modest investment in partnerships and early hardware collaborations. The goal is R&D workflows that are ready to integrate quantum subroutines when the technology matures. The companies that benefit most will not necessarily be those spending the most today. They will be the ones best positioned to move when the moment arrives. The most common failure on quantum is conflating the urgency of the three classes — treating all three as equally distant or equally immediate, when each has a different clock running. The organizations that get this right understand early which problem classes matter to their business, which ones to set aside, and what the distinction demands of them starting Monday morning. https://lnkd.in/gkymW7Xm

₹33,000 Crore Momos Economy: Why a Street Stall Is Outearning a Software Job India doesn’t have an employment problem. It has a perception problem. 1. Old belief: Engineering degree = financial security. Corporate job = stable growth. Street business is survival. 2. New reality: Skill ≠ income. Degree ≠ wealth. Street retail = high-margin business. Welcome to India’s Momo Economy. ✅ THE NUMBERS 1. Total market size: ₹33,000 Crore 2. Organised brands: ₹3,000 Crore 3. Unorganised sector: ₹30,000 Crore+ 4. Employment: 5 Lakh+ people 5. Average vendor profit: ₹25–35 Lakh/year This isn’t street food. This is informal retail at scale. ✅ The Real Comparison: Salary vs. Cash Flow Let’s break the myth. - Engineer salary: ₹8–20 LPA - Momo vendor revenue: ₹45–60 LPA - Net profit: ₹25–35 LPA No appraisals. No layoffs. No funding for winter. Just daily cash flow. This is EBITDA-driven income. ✅ The Daily Math Nobody Talks About - Prime locations like Lajpat Nagar and Bandra: Average performance is 250 plates/day, ₹60 per plate, and ₹15,000 daily revenue. - Cost per plate: ~₹18 - Daily profit: ~₹10,000 - Monthly: ~₹3 Lakh - Annual: ₹30 Lakh+ No Excel sheet needed. Just volume + consistency. ✅ Why This Model Wins Because it solves 3 problems perfectly: 1. Zero Inventory Risk 2. Food is cleared daily. No dead stock. No write-offs. 3. High Repeat Consumption. The chutney isn’t a side. It’s a retention strategy. Low Entry Barrier is crucial. Setup cost: under ₹50,000. This is not a startup. This is plug-and-play commerce. ✅ The Hidden Moat: Addiction Economics People don’t come back for the momo. They come back for the flavour memory. Spicy chutney, MSG-driven taste, fast service without any ads and CAC—this is organic retention at 100%. ✅ The Informal Franchise Model What looks like one stall is often a network. 10–15 carts per owner, staff on revenue share and centralised sourcing, this is India’s version of decentralised retail, micro-franchising, and bootstrapped scaling without any pitch decks and VCs. Just cash-funded expansion. ✅ The Real Insight: Location = Revenue Engine 1. A momo business is not about food. It’s about footfall capture. 2. Near offices → evening rush 3. Near colleges → daily demand 4. Near markets → impulse buying 5. Right location = predictable revenue. This is real estate arbitrage at street level. ✅ Let me share the #Rajspectives - Income is shifting from degrees to distribution. - Small-ticket, high-volume businesses are underrated. - Informal sectors run on better unit economics than startups. - Cash flow beats salary in wealth creation. - The next big entrepreneurs won’t always come from campuses. The biggest paradox of 2026: The engineer is building apps for scale. The momo vendor is already running one. Because in India, the most powerful business models aren’t always coded. Sometimes, they’re steamed. #india #business #economics #startups #streetfood #strategy

Can STRATEGY learn anything from QUANTUM MECHANICS? Quantum mechanics offers valuable insights for strategic leadership in today's complex and uncertain business environment. Here's how we can apply quantum principles to enhance our leadership approach: 1]. EMBRACING UNCERTAINTY AND POSSIBILITY In quantum mechanics, particles exist in multiple states simultaneously until observed. Similarly, strategic leaders must embrace uncertainty and consider multiple possibilities. Instead of rigid, deterministic planning, we should: - Envision multiple potential outcomes for any situation - Explore diverse approaches with input from various stakeholders - Maintain flexibility to pivot as circumstances evolve This "superposition" mindset allows us to thrive on uncertainty and foster innovation at the "edge of chaos". 2]. THE POWER OF OBSERVATION AND INTENTION Just as observing quantum particles affects their state, a leader's focus shapes organizational reality. We must be mindful of our "observer effect" by: - Cultivating awareness of our perceptual biases - Intentionally creating a positive organizational culture - Balancing focus between efficiency (exploiting) and effectiveness (exploring) Our attention and expectations have ripple effects throughout the organization. 3]. INTERCONNECTEDNESS AND EMERGENCE Quantum entanglement demonstrates the interconnected nature of particles. In leadership, this translates to: - Fostering strong relationships and networks within teams - Recognizing that small actions can have far-reaching impacts - Allowing for bottom-up, self-organizing structures to emerge By cultivating a high "connectivity quotient," we can create teams that perform beyond the sum of their parts. 4]. ADAPTING TO COMPLEXITY Quantum uncertainty challenges traditional, linear planning. To lead effectively in complex systems: - Adopt an adaptive, learning-oriented approach to strategy - Encourage experimentation and "quantum tunneling" to overcome barriers - Focus on creating conditions for innovation rather than rigid objectives. By embracing these quantum principles, we can develop a more nuanced, flexible, and effective approach to strategic leadership in our rapidly changing world.

𝗙𝗮𝗯𝗹𝗲. 𝗠𝘆𝘁𝗵𝗼𝘀. 𝗔𝗜. 𝗤𝘂𝗮𝗻𝘁𝘂𝗺. Two accelerating forces are reshaping cyber risk: • 𝗔𝗜 𝘁𝗵𝗿𝗲𝗮𝘁𝘀 from powerful models such as 𝗙𝗮𝗯𝗹𝗲 / 𝗠𝘆𝘁𝗵𝗼𝘀 𝗔𝗜 • 𝗤𝘂𝗮𝗻𝘁𝘂𝗺 𝗰𝗼𝗺𝗽𝘂𝘁𝗶𝗻𝗴 𝘁𝗵𝗿𝗲𝗮𝘁𝘀 to current cryptography And the real question is: 𝗜𝘀 𝗼𝘂𝗿 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝘁 𝗲𝗻𝗼𝘂𝗴𝗵 𝗳𝗼𝗿 𝗯𝗼𝘁𝗵? AI can accelerate discovery, automation and productivity. But it can also accelerate phishing, exploit development, malware adaptation, social engineering, deepfakes, reconnaissance and attack scaling. Quantum computing can transform science and computing. But it can also challenge the cryptographic foundations we rely on today: PKI, VPNs, TLS, digital signatures, firmware signing, identity systems and long-life encrypted data. This is why resilience can no longer be planned around one threat at a time. For critical infrastructure, OT environments and digital businesses, the priority should be: • 𝗖𝗿𝘆𝗽𝘁𝗼𝗴𝗿𝗮𝗽𝗵𝗶𝗰 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 Know where RSA, ECC, TLS, PKI and signing mechanisms are used. • 𝗗𝗮𝘁𝗮 𝘀𝗵𝗲𝗹𝗳-𝗹𝗶𝗳𝗲 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 Identify information that must remain confidential for years. • 𝗣𝗤𝗖 𝗿𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀 Start planning for post-quantum cryptography migration. • 𝗖𝗿𝘆𝗽𝘁𝗼-𝗮𝗴𝗶𝗹𝗶𝘁𝘆 Build the ability to change algorithms, certificates, keys and trust anchors without major disruption. • 𝗔𝗜 𝘁𝗵𝗿𝗲𝗮𝘁 𝗿𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀 Prepare for faster, more adaptive and more convincing attacks. 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 𝗻𝗼𝘄 𝗺𝗲𝗮𝗻𝘀 𝗽𝗿𝗲𝗽𝗮𝗿𝗶𝗻𝗴 𝗳𝗼𝗿 𝗯𝗼𝘁𝗵 𝗔𝗜-𝗱𝗿𝗶𝘃𝗲𝗻 𝘁𝗵𝗿𝗲𝗮𝘁𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗾𝘂𝗮𝗻𝘁𝘂𝗺 𝗲𝗿𝗮. Because the next cyber risk is not only about smarter attackers. It is about whether our infrastructure can stay trusted when both intelligence and computing power accelerate. #CyberSecurity #QuantumComputing #PostQuantumCryptography #PQC #AIThreats #OTSecurity #CriticalInfrastructure #DigitalResilience #CryptoAgility #QDay

Quantum readiness is less about sudden disruption and more about cultivating skills, forging collaborations, and aligning strategies with evolving standards, so that businesses can gradually integrate these technologies into their long-term transformation paths. We should see quantum computing as a journey that requires methodical preparation. Finance, logistics, chemistry, and cybersecurity are already experimenting with hybrid models that combine classical and quantum systems. These early steps show that the transition will not happen overnight, but through structured phases of learning and integration. The priority for leaders is to identify processes where quantum can create measurable improvements. This means feasibility studies, pilots, and a roadmap that integrates quantum into IT environments in a sustainable way. At the same time, teams need training in principles, tools, and algorithms, because without this foundation, the technology remains an abstract concept. Collaboration is another essential layer. Partnerships with research hubs, vendors, and cloud providers open access to quantum resources that would otherwise remain out of reach. Alongside this, governance and security must advance with post-quantum standards, ensuring compliance and ethics are never secondary. The real challenge is continuous adaptation. Regulations and technologies will evolve, and strategies must remain flexible. This long-term perspective will define the organizations that are prepared to grow with the next wave of innovation. #QuantumComputing #DigitalTransformation #FutureOfWork

Strategy isn’t about filling in frameworks. It’s about thinking clearly. Many leaders fall into the trap of treating strategic frameworks as the solution. In reality, they are just tools. The true power of strategy comes from disciplined thinking, sharp insight, and courageous decision-making. Here’s why this matters: 1. Frameworks are tools, not answers.   These are useful for structuring your thinking. But they don’t make decisions for you. Their real value lies in provoking insights, challenging assumptions, and uncovering blind spots. 2. Strategy is about making clear choices.   The essence of strategy is deciding what to do—and just as importantly, what not to do. Frameworks help organize the information, but leadership judgment drives the choices. This requires clarity, courage, and conviction. 3. Context is everything.   Frameworks are generalized; your business is not. Success depends on understanding the nuances of your market, customers, and capabilities. Applying tools without adapting them to your specific context leads to average outcomes. 4. Strategy is an ongoing process.   Markets shift. Competitors evolve. Internal capabilities change. Strategy isn’t a one-time event—it’s a dynamic, continuous process. Frameworks provide structure, but reflective, adaptive thinking ensures relevance over time. 5. Advantage comes from differentiated thinking.   Competitive advantage doesn’t emerge from a textbook analysis. It’s built on unique insights, clarity of thought, and strategic intuition. Frameworks can guide the process, but distinct thinking creates differentiation. 6. Strategic dialogue drives alignment.   Frameworks are valuable for structuring conversations and fostering collaboration. They help teams build shared understanding and align on direction. But real strategy requires engaging dialogue, not just filling out templates. In short, strategic frameworks are valuable when used as part of a broader, thoughtful, and iterative process. Leaders who rely solely on frameworks miss the opportunity to create meaningful competitive advantage. Ps. if you like content like this, please follow me. 🙏

"𝘼𝙖𝙥 𝙪𝙗𝙖𝙡𝙚 𝙖𝙣𝙙𝙚 𝙗𝙝𝙞 𝙗𝙚𝙘𝙝𝙩𝙚 𝙝𝙤?" ("𝘿𝙤 𝙮𝙤𝙪 𝙖𝙡𝙨𝙤 𝙨𝙚𝙡𝙡 𝙗𝙤𝙞𝙡𝙚𝙙 𝙚𝙜𝙜𝙨?") 𝐒𝐭𝐫𝐞𝐞𝐭-𝐒𝐢𝐝𝐞 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐭𝐡𝐚𝐭 𝐚𝐫𝐞 𝐛𝐞𝐭𝐭𝐞𝐫 𝐭𝐡𝐚𝐧 𝐚𝐧𝐲 𝐌𝐁𝐀 𝐜𝐥𝐚𝐬𝐬! That’s the question I found myself asking a small shopkeeper today. On my morning walk, I noticed something new: Boiled eggs stacked neatly at a tiny 10-15 sq. ft roadside store — the kind that sells raw eggs, bread, biscuits, chocolates, and the essentials. Curious, I stopped and asked. "Yes, sir," he smiled. "₹10 per boiled egg." (For context: a raw egg sells for ₹6.) The conversation that followed was a mini-masterclass in small-scale innovation. "Who’s buying?" "Office goers. Health-conscious folks chasing protein-rich diets." And not just boiled eggs. He pitched me an Anda Pav too. (Think: Wada Pav — but swap the fried potato patty with a simple boiled egg.) ₹15 for an Anda Pav. Let’s break it down: Raw egg ₹6 + Pav ₹3 = ₹9 cost Selling price ₹15 → 66% margin uplift. And the boiled egg? Raw egg ₹6 → Boiled egg ₹10 → 66% premium. Even after accounting for extras — like chutneys, spices, or shelf space — this simple move nets him around ₹500 additional profit every day. (~20% monthly profit boost, according to him.) If you think about it, he’s applying classic strategic moves: 𝐓𝐫𝐞𝐧𝐝 𝐑𝐢𝐝𝐢𝐧𝐠: Spotting the "consume more protein" movement. 𝐔𝐩𝐬𝐞𝐥𝐥𝐢𝐧𝐠: Offering boiled eggs, then suggesting a higher-ticket Anda Pav. 𝐀𝐝𝐣𝐚𝐜𝐞𝐧𝐜𝐲 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧: Moving beyond raw goods into ready-to-eat products. 𝐇𝐢𝐠𝐡-𝐌𝐚𝐫𝐠𝐢𝐧 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧: Minimal value addition, maximum premium capture. Business concepts + Street smarts. Small bets. Big returns. Have you seen similar micro-innovations around you? What’s a simple 20% profit idea you could launch — without overcomplicating things? Would love to hear your thoughts 👇 #Entrepreneurship #BusinessStrategy #Innovation #SmallBusiness #Consulting #MBA 𝐏.𝐒. Look closely — the biggest strategy lessons are often playing out right around us. You don't always need a boardroom or a B-school classroom. You just need to stay curious.