business strategy is often ignored until a problem arises. for example, a loss in product sales, declining profit margins, or the appearance of a new competitor. Until then, we often rely on weak strategy substitutes, such as having a compelling vision or ambitious goals.
Of course, there is nothing wrong with creating a vision for the future or setting goals. however, it is a mistake to treat these things as strategies because doing so can prevent us from pursuing the real thing. As a result, we can find ourselves without a deep understanding of the challenges we face or the opportunities worth pursuing.
So, let’s explore six of the best trading strategy books you can read when creating an effective plan for success. They cover critical topics, including:
You are reading: Best books on business strategy
- how to make the competition irrelevant
- how to avoid being interrupted by innovative startups
- how to increase profits by creating a competitive advantage
- how to sell disruptive products to core customers
- the difference between a good strategy and a bad strategy
- tips to turn a good company into a great company
I recommend that you familiarize yourself with each of the books on this list so you can identify one or two that you think are most relevant to your business today.
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1. blue ocean strategy by w. Chan Kim & renée mauborgne
Many businesses fall into the trap of obsessing about their competition. As a result, they try to win over the same customers with a similar product and an undifferentiated strategy. Unfortunately, this approach leads to cutthroat competition that destroys profit margins and limits future business growth.
The blue ocean strategy can help you avoid this fate by making the competition irrelevant. explains how to create and capture new demand, break the value/cost balance, and redefine market boundaries to create a leap in value for buyers. is a must-read for business leaders who want to create or maintain healthy profit margins.
blue ocean strategy is available on amazon and apple books. you can learn more by checking out my blue ocean strategy book summary.
2. the innovator’s dilemma by clayton christensen
It’s no secret that businesses often fail in the face of disruptive innovation. However, what’s surprising is that this outcome is not necessarily due to bureaucracy, arrogance, poor planning, or short-term investments like many may suspect. Instead, it’s often the strengths of well-managed, customer-driven businesses that cause them to fail.
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The Innovator’s Dilemma explains how a relentless focus on meeting customer needs can make an innovative company outperform a great company. Most important of all, it explores practical strategies for avoiding interruptions. therefore, it is a must-read for leaders of well-established companies, as well as founders of disruptive startups.
The Innovator’s Dilemma is available on Amazon and Apple Books.
3. understanding michael porter by joan magretta
The goal of a great company is to earn profits, not to take business away from rivals. Yet, even if you’re focused on creating value and profit, you will inevitably face competitors that try to emulate your success and eat into your margins. So, it’s critical to understand how to deal with competitors so you can maintain healthy profits.
Understanding Michael Porter is a practical guide to Michael Porter’s best trading strategy tips. explores how to create competitive advantage, maintain healthy profit margins, and ultimately deal with the competition. the book can help you create a strategy to generate and maintain profitability in a competitive market.
Understanding Michael Porter is available on Amazon and Apple Books.
4. Crossing the Abyss by Geoffrey A. more
Many innovative businesses fail to attract a mainstream audience to their product or service. They build initial momentum with enthusiastic early adopters but are unable to win over the broader, more lucrative mainstream market. As a result, they severely limit future business growth and fail to capture the full profit potential of what they’ve built.
Crossing the Chasm explains how to market disruptive products to a general audience. The insights apply to any product or service that requires customers to change their habits or behaviors to use it. so if your solution breaks industry norms or challenges the status quo, this is a book you should read.
crossing the abyss is available on amazon and apple books.
5. good strategy / bad strategy by richard rumelt
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Many business leaders fail to establish an effective plan for their organization. They mistake the process of defining a bold vision or setting ambitious goals with creating a business strategy. As a result, they never identify the true challenges they face and have no concrete plans for dealing with them.
good strategy / bad strategy can help you design an effective plan. one that takes advantage of your organization’s strengths and your rival’s weaknesses to create a competitive advantage. And by demonstrating the difference between good and bad strategies, the book makes it easier to avoid common mistakes along the way.
good strategy/bad strategy is available on amazon and apple books.
6. good to excellent by jim collins
Every once and a while, a relatively average company makes the leap from good results to great results. In some cases, they do so independently of industry trends or other factors that might help explain their sudden success. So, this phenomenon begs the question, “How can a good company become a great company?”
good to great explains why some companies make the leap and others don’t. explores six powerful concepts identified during a comprehensive study of companies that had made a transformation from good to great. and the book makes each of the ideas accessible to others looking to achieve similar results.
Good to Excellent is available on Amazon and Apple Books. If you’d like more information before purchasing a copy, check out the summary of my Good to Great book.
other great books for business leaders to read
After learning about business strategy, you may be interested in other business topics, such as leadership, product development, or marketing. So when you’re done reading some of the best business strategy books, consider checking out my other reading lists.
You can also subscribe to the rick kettner youtube channel or the rick kettner podcast to receive updates on future book summaries and reading lists.
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