Strategy is a plan of action that is targeted at achieving a major aim. Strategic plans tend to be longer-term, and may extend multiple years into the future, depending on the business. For example, the strategic plan for a power company may need to extend a decade into the future, since its plans must encompass the development of electricity-generating facilities and an electrical grid for its customers. Conversely, the strategic plan for a company situated in an entirely new industry may not extend more than one year, since the market is still developing and could branch off in unexpected directions. Examples of several highly simplified strategies are:
Retail chain. To develop an online store, serviced by regional warehouses that can deliver to any customer in North America within two days.
Automobile manufacturer. To enter the sport utility vehicle market with a mid-sized offering within three years, to be sold in the European and Asian markets.
Hotel operator. To double the number of properties within ten years, focusing primarily on vacation destinations around the world.
Utility company. To increase the proportion of renewable energy sources to 40% of the total amount of electricity provided within 10 years.