Strategy. The company decides which business it wants to be in and how it will compete, creating a “unique and valuable position involving a distinctive set of activities.” It’s another way of saying, I think, here is what we can do better than anyone else and how we can defend our position in a competitive marketplace.
Business Model. I like the authors’ description of the business model as the “logic of the company.” This is how the firm organizes and operates, how it delivers value to customers, and how it captures value for stakeholders. It must align with company goals.
Tactics. Tactics are the steps used to compete in the marketplace, and they are defined largely by the business model. If your business model is built around direct sales, your tactics won’t involve incentives to retailers, for example.
