Where to Play? How to Win?
The Two Choices That Define Strategy
Where to Play? How to Win? Ultimately, strategy comes down to these two choices—thereby bringing clarity, focus, and alignment to leadership decisions.
Introduction
In many organizations, strategy discussions become complex very quickly. As a result, leadership teams often review detailed market analyses, competitive intelligence, financial projections, and operational plans. While these elements are important, they can nonetheless obscure the fundamental choices that strategy ultimately requires.
However, at its core, strategy is not about producing extensive documents or launching numerous initiatives. Instead, it is about making a small number of clear decisions that define how the organization will compete and succeed over time.
With that in mind, two questions sit at the center of those decisions:
Where to Play?
How to Win?
Although these questions may appear simple, they capture the essence of strategy. To begin with, the first defines the arenas in which the company will compete. In turn, the second defines the sources of advantage that will allow the organization to succeed in those arenas.
When leadership teams address these questions rigorously, strategy becomes clearer, decision-making becomes more focused, and resources can be allocated more effectively. Conversely, without clear answers, organizations risk pursuing opportunities without a coherent path to competitive success.
Where to Play? How to Win? Defining the Strategic Questions
The questions “Where to Play?” and “How to Win?” form the foundation of many modern strategy frameworks because, above all, they force leadership teams to make deliberate choices.
Where to Play refers to the scope of the organization’s activities: the markets, customer segments, products, technologies, and geographies where the company intends to compete.
How to Win refers to the company’s approach to creating competitive advantage within those chosen arenas.
Taken together, these questions establish the company’s strategic position.
That said, a strategy that answers only one of these questions is incomplete. For instance, choosing attractive markets without a clear path to advantage leaves the organization vulnerable to competition. Similarly, possessing strong capabilities without a clear market focus disperses resources and attention.
For these reasons, an effective strategy requires answering both questions simultaneously.
A Framework for Addressing the Two Questions
Although each organization faces unique circumstances, leadership teams can nonetheless structure their strategic thinking around four key steps.
1. Define the Competitive Arenas
First, the company must determine where it intends to compete.
Specifically, this involves choices about:
- customer segments
- industry verticals
- geographic markets
- product or technology domains
- adjacent markets and opportunities
For example, an industrial technology company may decide to focus on electrification infrastructure, digital industrial platforms, or advanced automation solutions.
At this stage, the critical discipline is focus. After all, organizations inevitably encounter more opportunities than they can pursue effectively. Accordingly, strategy requires narrowing the field to the arenas where the company can realistically create value.
Just as importantly, choosing where to play also means deciding where not to play. In doing so, these choices concentrate resources and leadership attention on the opportunities that matter most.
2. Understand the Sources of Advantage
Next, once the competitive arenas are defined, leadership teams must determine how the company will compete successfully within those arenas.
Competitive advantage can arise from several sources, including:
- technological leadership
- superior product performance
- cost efficiency or operational excellence
- strong customer relationships
- integrated solutions or services
- brand reputation and trust
Ultimately, the key question is not simply how the company will participate in a market, but rather how it will differentiate itself from competitors.
Therefore, leadership teams must identify the distinctive strengths that allow the organization to outperform rivals.
3. Align Capabilities with Strategic Intent
Then, winning in chosen markets requires specific organizational capabilities.
More specifically, capabilities include the technologies, expertise, processes, and partnerships that enable the company to deliver value to customers.
For example, a company pursuing digital service models may need capabilities in software development, data analytics, and lifecycle service delivery. Meanwhile, an organization focused on global infrastructure projects may require capabilities in engineering, project management, and regulatory navigation.
Consequently, leadership teams must evaluate whether the organization currently possesses the capabilities required to support the strategy. If gaps exist, then the strategy must also include plans to develop or acquire those capabilities.
4. Translate Strategic Choices into Action
Finally, once the answers to “where to play” and “how to win” are clear, leadership teams must translate these choices into operational priorities.
This includes:
- allocating capital to strategic growth areas
- launching initiatives that strengthen competitive capabilities
- aligning leadership teams around shared objectives
- integrating strategic priorities into planning and execution processes
In other words, strategy only becomes meaningful when these choices influence real decisions about investments, resources, and leadership attention.
Where to Play? How to Win? - Why These Questions Matter
Organizations that structure their strategy around the “where to play / how to win” framework often experience several benefits.
Strategic clarity improves.
Leadership teams gain a clearer understanding of the company’s priorities and direction.
Resources become more focused.
Capital, talent, and leadership attention are concentrated on the most promising opportunities.
Decision-making becomes more aligned.
Managers across the organization can evaluate decisions based on whether they support the company’s strategic position.
Competitive positioning strengthens.
By aligning markets and capabilities, organizations are better able to create sustainable advantage.
In essence, the framework simplifies complex strategic discussions by focusing attention on the choices that truly matter.
Practical Implications for Leadership Teams
For CEOs and executive teams, applying the “where to play / how to win” framework can significantly improve the effectiveness of strategy discussions.
To that end, several practices can help.
Encourage disciplined strategic dialogue.
Leadership teams should devote dedicated time to discussing market positioning and competitive advantage before moving into operational planning.
Limit the number of strategic priorities.
Attempting to pursue too many opportunities simultaneously weakens strategic focus.
Evaluate opportunities through the strategic lens.
New initiatives should be assessed according to whether they strengthen the organization’s position in its chosen arenas.
Revisit strategic choices regularly.
Markets evolve continuously. Periodic strategy reviews ensure that the company’s choices remain aligned with industry developments.
When leadership teams consistently apply these principles, strategy becomes a guiding framework for decision-making rather than simply a periodic planning exercise.
Frequently Asked Questions
Are “where to play” and “how to win” relevant to all companies?
Yes. In any industry, every organization must decide where it will compete and how it will create advantage within those markets. Although the specific answers vary, the questions themselves apply broadly across industries.
How often should these questions be revisited?
In practice, leadership teams typically revisit these questions during annual strategy reviews or whenever major industry developments occur.
Can smaller companies apply this framework?
Absolutely. In fact, smaller companies often benefit greatly from the clarity that comes from focusing on a limited number of strategic arenas.
What role can external strategy advisors play in this process?
External strategy advisors can help leadership teams structure discussions around these questions; additionally, they can challenge assumptions and facilitate alignment on strategic choices.
Author
Sven Muendler, Founder of Strategema Advisory and former Vice President of Strategy for Siemens USA.