🔍Effective Strategy Requires: FOCUS!
The Big Idea: Strategy requires focus.
With a potential economic downturn, companies are being forced to make new strategic decisions.
Meta’s stock has declined over 60% in 2022.
Meta also posted its first ever revenue drop in Q2 of 2022.
What does this mean: Declining share price and a revenue drop mean that Meta must make new strategic choices.
Rising revenues and growing share prices allowed Meta:
To invest in many programs like the Metaverse.
To hire more employees growing the company to over 80,000 employees.
To be aggressive with the government around disinformation.
Now?
Those decisions may need revisiting.
For you: Meta’s situation can teach us some lessons on strategy.
Strategy requires choice. You can’t do everything.
Strategy in turbulent times requires you to make new choices. The old stuff might not work.
Right now, juggling more inputs is required. There are challenges coming from many directions.
The bottom line: Meta was able to spread itself thin for many years because of a growing business.
As that changes, Meta will be forced to rethink their business and the value they deliver to their customers.
Just like everyone else.
Go Deeper: A great strategy primer from Roger Martin.