|· The business model focuses on value creation||· Strategy goes way further than the business model by pursuing on building a sustainable competitive advantage|
|· Business model focuses on converting innovation to economic value||· Strategy also focuses on how to enhance shareholder worth/value|
|· It assumes limited environment at knowledge||· It is based on more complex analysis that requires more creativity in knowledge of external factors|
- Strategy is the art and science of the planning and conducting war.
- The word is derived from strategy which means to lead/win the war.
- In earlier times warriors always found ways to win the war which required strategic planning to gain a competitive advantage over their enemies.
- Due to the complex nature of the business decisions, the present business environment can be compared to a like situation and “strategic management” has become important for their survival and growth.
- Setting targets on the basis of opinion.