Fundamental Beliefs - Guiding principles for strategy

I am frequently asked about the most important factors that shape my views on strategy. And to that question, my answer is always simple. I am driven by three fundamental beliefs:

1. Customers always choose the best available

What is best is defined by each customer. It could be price, availability, specifications , or some other variable. Whatever the utility curve the customer is using to determine their preference, they will choose the best they can afford, from what's available, wherever they can find it.

2. The best is always changing

The best changes over time because customer preferences change, what competitors offer changes, or because what companies provide to their customer changes.

3. Only companies capable of change are sustainable

The inevitable conclusion is that companies must change. And, they must change faster than the customers are changing in order to stay relevant.

For me, the only constant is change!