A strategy increases the odds that your profitability targets will be realized. A strategy takes into account the (changing) demand, the (changing) competitive landscape, the (changing) success factors to obtain competitive advantage and the possible weaknesses of your company.

Strategies are developed for the various entities in your company in order to align them towards a common goal. The scope of these strategies vary:

Company strategy
Functional Strategy (for example Research & Development)
(Sub) Business Unit strategy
Segment strategy
Business Model Innovation
Product/service concept & value proposition innovation
Key Account strategy 

A strategy is not static. A strategy needs adjustments if one or more assumptions on which it is based are no longer valid. Continuously reviewing your strategy is therefore necessary.