Final answer:
A good business strategy answers key questions such as the unique value the business brings, where it competes, how it sustains value, and what resources it utilizes. These strategic elements are essential for the company to maintain its competitive position in the market.
Step-by-step explanation:
A good strategy in business provides clear answers to several key questions that ensure the company can navigate the competitive landscape effectively. The questions that it should answer include: What value does the business bring? This speaks to the unique selling proposition or competitive advantage of the business.
Another question is Where does the business compete? which outlines the marketplaces, customer segments, or regions where the company operates. Lastly, the question of How is value sustained? touches on the long-term aspects, ensuring that the business can maintain its competitive edge over time. These strategic considerations are influenced by the production and cost conditions each firm faces, as well as the market structure, which includes factors like market power, product differentiation, and barriers to entry.
Additionally, a good strategy should consider the practical details, such as what resources we utilize. Answering this provides a framework for how the company will leverage its assets, technology, and human capital to execute its business model.