This work offers a summary of the book “COMPETITION DEMYSTIFIED: A Radically Simplified Approach to Business Strategy” by Bruce Greenwald and Judd Kahn.

Bruce Greenwald is professor of finance and asset management at Columbia Business School. Judd Kahn is Chief Operating Officer of Hummingbird Management, LLC, an investment management firm.

Despite what the experts and consultants say, business strategy is not the be-all and end-all of effective business planning. Nor is strategic planning the only available source of superior returns. Strategy does matter in the long run because if a firm pursues unrealistic strategic goals, poor business outcomes are virtually guaranteed. Strategy, however, is not the whole story. The best strategy in the world cannot offset the need for operational excellence or good management.

According to the authors, good strategy formulation always focuses on three main goals: 1. To identify the competitive environment in which the business operates, and whether the firm has a competitive advantage; 2. To manage effectively the interactions with the other firms on which your company’s own performance depends; and 3. To develop a clear, simple vision of where your company needs to be heading in the future.

Competition Demystified is a valuable and well-written business book for strategists and managers.