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Strategic drivers are things that shape an organization's plans for the future. In other words, they are factors that people consider when developing business strategies. The following are common strategic drivers:Many organizations are driven to build a particular brand image and experience.
Budget constraints.Competitive threats such as a price war or innovation by a competitor.The need to defend and build capabilities that allow you to compete such as innovative products or cost leadership.Changing costs due to factors such as inflation, commodity prices and foreign exchange.
Shifting customer preferences such as fashion trends.A long term competitive advantage that is difficult for the competition to challenge.Economic forces including growth, interest rates and inflation.Primary goals such as revenue and sustainability.
Governance is the practice of directing an organization in the interests of stakeholders including owners, creditors, employees, customers and the communities in which an organization operates. The interests of stakeholders is a fundamental strategic driver.The forecast or predicted direction of an industry.LocationLocation is a competitive factor that may shape strategy. For example, a superior location such as the only restaurant in a small airport is likely to affect pricing strategy.
Competition in pricing, products, promotion and distribution.The purpose and direction of your organization.A strategy typically needs to account for your corporate culture. For example, the level of resistance to change that might be expected.
PartnersAligning with or complimenting the strategy of partners.Guidelines that an organization has adopted to direct strategies and decisions.Public OpinionOpinions and values of the communities in which you operate.RegulationsLaws and regulations or anticipated future regulations.
ReputationBuilding or protecting a reputation.Acquiring or retaining resources such as skilled employees.Potential for losses associated with actions or inaction.Security ThreatsSecurity threats such as malware and hackers.Security VulnerabilitiesSecurity vulnerabilities such as software bugs or a lack of information security awareness amongst employees.Preventing harm to people and planet.Current and future tax efficiency.Technology change may allow for new efficiencies or may represent a threat to existing business models.An organization's values such as respect for employees, customers, communities and the environment.WeatherWeather influences strategy in many industries, particular those that involve outdoor work such as construction.|
| Type | | | Definition | Pressures that shape an organization's plans for the future. | | Related Concepts | |
Strategic Planning
This is the complete list of articles we have written about strategic planning.
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The definition of governance with examples.
A list of macro environment components.
A definition of markets with examples.
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The difference between a baseline and a benchmark.
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A few sources of competitive advantage for businesses.
The difference between competitive advantage and distinctive capability.
An overview of a common business strategy.
A definition of restructuring with examples.
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The basic types of strategy.
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