Chef/restaurateur/Food Network star Geoffrey Zakarian recently agreed with this move: "McDonald's should do what it does well. You get the feeling they're throwing things against the wall to see what sticks. You can't be all things to all people."
Geoffrey Zakarian must have read Michael Porter since he aptly stated the essence of Strategy: “You can't be all things to all people." Too many people confuse strategy with making moves and processes. Strategy means having a clear understanding of what makes you special and then having the discipline to focus only on those things that help you grow profitably based on your uniqueness. Find and be excellent in a niche whenever you can. Otherwise, competitors with broader resources can simply undercut you in price or offerings. You also risk being mediocre (neither special nor unique) in everything and excellent (with a unique and targeted value proposition) at nothing.
Michael Porter's definition of strategy:
- Strategy 101 is about choice: You can’t be all things to all people.
- The essence of strategy is choosing what not to do.
- Strategy is about making choices, trade-offs; it's about deliberately choosing to be different.
- The essence of strategy is that you must set limits on what you're trying to accomplish.
- Finally, strategy must have continuity. It can't be constantly reinvented.
- If all you're trying to do is essentially the same thing as your rivals, then it's unlikely that you'll be very successful.
- A strategy delineates a territory in which a company seeks to be unique.
- The company without a strategy is willing to try anything.