Starting Strategy Development — 7 Questions to Ask First | Aydoo

You are a CEO, managing director, or manager and want to develop a strategy? Before you begin, you should be clear about three things:

1. Goals — What do you want to achieve?
2. Strengths and weaknesses — Where do you stand today?
3. Unique selling proposition — What distinguishes you from the competition?

These three elements form the foundation of every successful strategy development process. Without them, you are building on sand.

The 7 Phases of Strategy Development

Phase 1: Define Your Goals

Before you take any action, you need clarity about what you want to achieve. Ask yourself:

• Where should my company be in 3, 5, or 10 years?
• What is our most important goal for the next 12 months?
• Which results would make the greatest difference?

Good goals are specific, measurable, attractive, realistic, and time-bound (SMART). “We want to grow” is not a goal. “We want to increase our revenue by 30% over the next 24 months” is.

Phase 2: Determine Your Strengths and Weaknesses

To develop an effective strategy, you need to know exactly where your strengths lie — and where they do not. Use:

• Internal analyses and employee interviews
• Expert interviews and external feedback
• Market research and competitive analyses
• Customer surveys and reviews

Be honest: Strengths you only imagine you have will not help you. Focus on what your customers actually value about you. A structured research design helps you achieve objective results.

Phase 3: Create a SWOT Analysis

The SWOT analysis is a proven tool that systematically captures Strengths, Weaknesses, Opportunities, and Threats.

• Strengths and Weaknesses are internal factors that you can influence.
• Opportunities and Threats are external factors that affect the market and your environment.

The SWOT analysis shows you where your strengths meet market opportunities — that is the sweet spot for your strategy.

Phase 4: Develop Your Unique Selling Proposition

Your USP (Unique Selling Proposition) answers the question: Why should a customer buy from you and not from the competition?

A strong unique selling proposition is:

• Relevant — It solves a real problem for the target audience.
• Unique — No competitor offers the same thing.
• Communicable — It can be explained in one sentence.

Phase 5: Design Your Strategy

Based on the previous analyses, you now define your strategy. The strategy describes how you use your strengths and your unique selling proposition to achieve your goals.

Various foundational strategies are available — from cost leadership to differentiation to niche strategy (according to Porter). A particularly effective approach is the Engpasskonzentrierte Strategie (EKS®), developed by Wolfgang Mewes, which concentrates all forces on the most critical bottleneck of the target audience. More about strategy types in our article: What Is a Business Strategy?

Phase 6: Implement Your Strategy

A strategy that only exists on paper is worthless. For execution, you need:

• Clear responsibilities — Who does what by when?
• Resource planning — What means are available?
• Milestones — How do you recognize progress?
• Communication — Does everyone on the team understand the strategy?

Phase 7: Review Your Strategy

Strategy is not a one-time project but a living process. Review regularly:

• Are we reaching our milestones?
• Have market conditions changed?
• Do we need to adjust our tactics?
• What have we learned?

Recommendation: Quarterly strategic reviews and an annual comprehensive review.

Checklist for Starting Your Strategy Development

1. What do I want to achieve? (Goals)
2. What resources can I deploy?
3. How long will it take?
4. Where are my strengths and weaknesses?
5. What opportunities and risks exist?
6. How can I outperform my competitors?
7. What is my USP?

Conclusion

Strategy development begins with clarity. Those who know their goals, strengths, and unique selling proposition have a solid foundation for an effective strategy. The seven phases — from goal-setting to review — provide a framework that works for companies of any size.

Frequently Asked Questions (FAQ)

How long does strategy development take?

That depends on the company’s size and complexity. For small companies, a focused strategy workshop of 1-2 days can lay the groundwork. For larger organizations, the process typically takes 4-12 weeks, including analysis, workshop phases, and documentation.

Who should be involved in strategy development?

At minimum, the executive management and the heads of key departments. Ideally also selected employees with customer contact — they often know the target audience’s needs best. External consultants can moderate the process and uncover blind spots.

What is the most common mistake in strategy development?

The most common mistake is not executing the strategy consistently. Many companies invest time in workshops and documents, then return to daily operations without translating the strategy into concrete actions. That is why Phase 6 (Implementation) is so critical.

Can I do strategy development on my own?

Yes, especially as a solopreneur or small business. Use the 7 phases as a guide and work through the checklist. For larger companies, external support is recommended, as blind spots and operational blindness can distort the analysis.

Do I need a SWOT analysis, or are there alternatives?

The SWOT analysis is proven and widely used, but not the only option. Alternatives include: PESTEL analysis (for the macro environment), Porter’s Five Forces (for industry attractiveness), the Bottleneck-Focused Strategy (for identifying the most effective lever). Often a combination is most effective.

What comes after strategy development?

After strategy development comes execution: defining actions, assigning responsibilities, setting milestones, and reviewing regularly. The strategy must be communicated throughout the entire company. Recommendation: Quarterly strategic reviews and an annual comprehensive review.

Further reading:

• What Is a Business Strategy? — 13 Strategy Types at a Glance
• Bottleneck-Focused Strategy — Definition & Application
• The Best EKS Books
• Wolfgang Mewes — Founder of EKS

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