What these two understood about strategy.
In the dynamic world of business, the term “strategy” is often thrown around without a deep understanding of its implications. Many leaders use it as a buzzword to magnify the importance of routine business endeavors. To truly appreciate the essence of strategic leadership, let’s delve into the strategic thinking of two influential figures: Steve Jobs, the visionary behind Apple, and Bernard Arnault, the driving force behind luxury conglomerate LVMH.
At its core, a business strategy should address fundamental questions: “Where do we compete?” and “How do we win?” These seemingly simple questions demand thoughtful deliberation. While the conventional approach involves expanding ambitions based on perceived commercial viability, strategic leaders like Jobs and Arnault resist this urge. They understand the potential downsides and embrace a focused, all-in approach to succeed in the market.
Steve Jobs, during his comeback to lead Apple in 1996, faced a company on the brink of bankruptcy with a confusing product lineup. Jobs’s strategic prowess lay in his ability to focus and make tough decisions. He famously stated, “Deciding what not to do is as important as deciding what to do.” In a transformative boardroom session, he simplified Apple’s product line into a matrix, emphasizing the creation of four great products with an unwavering focus on consumer and professional needs.
Jobs, an advocate of simplicity, believed it was the key to market dominance. For him, simplicity wasn’t just a visual style but a deep understanding of complexity, eliminating non-essential components to create a superior product.
Bernard Arnault, the visionary behind LVMH (Louis Vuitton Moët Hennessy), showcases a different facet of strategic thinking. LVMH, a conglomerate of luxury brands, represents a masterclass in strategic expansion. Arnault strategically acquired and nurtured a portfolio of prestigious brands, each with its unique identity.
Arnault, known for his meticulous approach, understands where to compete and how to win in the luxury market. LVMH’s success lies in offering a range of exclusive and high-quality products, maintaining a careful balance between tradition and innovation.
Clear thinking about where to compete and how to win has proven to be the linchpin for Apple and LVMH. Both companies, under the strategic guidance of Jobs and Arnault, exemplify the essence of strategic leadership. As leaders, embracing these core principles can guide us in navigating the complexities of the business landscape and ensuring a focus on pivotal aspects that define our company’s agenda.
