The key steps in successful strategy development: In an age where markets are becoming increasingly dynamic and competitive, a clear corporate strategy is crucial. This article outlines the five key steps of a successful strategy process, explained in practical terms using the example of the fictional Alpentech GmbH, a medium-sized industrial company from Austria. At the end of the article, common mistakes are highlighted.  Enjoy reading! 1. Analysis of the business model and the initial situation – definition of the success profile At the beginning of every strategy development process, the following questions arise: Where are we today? What makes us successful? Alpentech GmbH – a manufacturer of precision components for mechanical engineering – analysed internal and external factors and came to the following conclusions: Internal strengths: High vertical range of manufacture Excellent reputation for quality Long-standing customer relationships Internal weaknesses: Outdated IT systems High dependence on three major customers External opportunities: Growing demand for lightweight components Nearshoring trend in Europe External risks: Price pressure from Eastern Europe Rising energy prices This led to the definition of the success profile: technological expertise, absolute delivery reliability and flexible, scalable production. 2. Define overall strategy and sub-strategies Based on the analysis, Alpentech GmbH develops a clear corporate strategy. Overall strategy “Alpentech GmbH is positioning itself as a premium supplier of innovative lightweight components and tapping into new European growth markets.” Sub-strategies Product strategy: Expansion of the lightweight construction portfolio Market strategy: Entry into Northern Italy Operational strategy: digitisation and automation of manufacturing Financial strategy: stable cash flow, targeted technology investments These clear strategic directions provide guidance for employees and management. 3. Set qualitative and quantitative targets An effective strategy requires precise goals – both qualitative and quantitative. Qualitative objectives Improving the perception of innovation Building digital skills within the team Diversification of the customer structure Quantitative targets Revenue growth: +20% in 3 years 10 new lightweight components by 2027 OEE increase from 73% to 82% Reduction of the largest customer share to below 25% These key figures serve as a management tool and basis for decision-making. 4. Develop and select strategic options Alpentech GmbH develops various options in a structured process: Examples: Expansion of lightweight construction manufacturing Sales office in Northern Italy Joint venture with supplier Introduction of an MES system Development of predictive maintenance services All options are evaluated according to: Strategic fit Feasibility Financial attractiveness Risk Resource availability The final selection: New lightweight construction production cell Market entry in Northern Italy Digitalisation programme ‘Smart Factory 2027’ 5. Action plan – from strategy to implementation The action plan translates the strategy into concrete measures. Exemplary action plan by Alpentech GmbH Measure Responsible Timetable KPI Introduction of MES system COO Q1–Q4 2026 OEE +5 % Establishment of sales organisation in Northern Italy Head of Sales from Q3 2025 3 new customers per year Investment in lightweight cell CFO/CTO Q2 2025 +20% capacity A clear action plan increases the likelihood of implementation and ensures that progress remains measurable. 6. Typical mistakes Lack of analysis or superficial analysis: The business model, market or internal performance are not analysed in sufficient depth. Data is used selectively (‘confirmation bias’). Risks, trends and competitive dynamics are underestimated. No clear success profile / no consistent positioning: Unclear answer to: What do we stand for? What truly makes us successful? Companies try to be “everything for everyone” → strategic arbitrariness. Strategy = wish list instead of real decision: Goals are defined without excluding anything. No deliberate “non-strategies”. Resources are being spread across too many initiatives. Too little focus on the future & scenarios Strategies are based solely on the past. Too little “forward looking”, scenario analysis or trend radar. Early warning indicators are lacking. Lack of involvement of the organization Strategy is developed behind closed doors (C-level only). Employees feel ignored → implementation fails. Unclear or unrealistic goals Target images are not measurable, not achievable, or not prioritized. No KPI set or no consistent target range. Lack of consistent resource planning Budget, personnel, and IT are not linked to the strategy. Projects are starting without a clear CapEx/OpEx framework. Lack of translation into operational measures The strategy is not translated into concrete, understandable initiatives. “Strategy on PowerPoint” instead of a real roadmap. Poor or no monitoring No strategy cockpit. Progress is not regularly monitored. Measures are corrected too late. Resistance to necessary changes Politics, power structures, or silo thinking prevent implementation. Lack of change communication. Strategies without customer focus Customer needs and changes in customer behavior are ignored. Internal perspective dominates over market perspective. Lack of agility The strategy is considered “set in stone”. Adjustments to market changes are made too late. 7. Conclusion A clearly structured strategy process provides orientation. A well-structured strategy process provides companies with a reliable framework for making the right decisions. The five core steps – analysis, strategy formulation, goal definition, options evaluation, and action planning – form the stable foundation for effective strategy development.The example of Alpentech GmbH illustrates how a medium-sized industrial company can systematically go through this process to secure growth, strengthen competitiveness and ensure long-term viability. Controlling as a central internal source of information A key success factor for professional strategy development is effective controlling. Only through structured controlling can the internal information necessary for sound strategic decisions be provided.Furthermore, one of the core tasks of controlling is to define the financial foundation of the strategy – in particular by creating a medium-term plan that serves as a budget framework for the planned strategic measures. This allows for an early assessment of whether the strategy is also financially feasible. Equally essential is a comprehensive risk analysis. It identifies the key risks associated with the strategy and enables the designation of clear risk owners who are responsible for planning and implementing appropriate countermeasures. At the beginning of every strategy development process, the following questions arise: Where are we today? What makes us successful? Alpentech GmbH – a manufacturer of precision components for mechanical engineering – analysed internal and external factors