Strategic advantage versus tactical advantage

It is the individual and organizational growth instinct - to aim and go for the next level that causes progress.  The definition and characteristics of ‘next level’ will depend on the understanding of present level and trends on which one can ride to go for the next level.  For instance, let us say, we are strong as a small pharma company in the musculoskeletal pain management space, in at least 100 districts of the 640 districts in India, then our tactical strength in these areas can be leveraged for launching trending orthopedic products (drugs and devices) that are patronized by orthopedicians who prescribe many musculoskeletal pain management products too.  So in this case, tactical strength in market provides expansion power to the organization.  On the other hand, if the same company launches a veterinary vaccine as a strategic growth driver, making a success of it will be a Herculean task, since it is not compatible to tactical advantages of the firm.  Thus, strategy and tactics ought to be two sides of the same coin to ensure a winning approach.

It is also observed, most of growth instincts are suppressed by fear of failure or possible loss.  It is legitimate to have such fears of the unknown, we are wired to have fear feeling to make us more cautious and self-analytical - so we can assess the situation from point of view of risks and threats and then take a judicious decision.  This will ensure self-preservation and growth pay-off.  Foolhardy decisions can be avoided, many a times; the leap of faith can be suicidal.  Hence, growth instinct needs to be tempered by wisdom of caution.

Tactical growth driver

Indian pharma companies have grown through tactical drivers rather than strategic growth drivers, which MNCs have used to a greater extent.  A strategic growth driver is more cerebral and long shot.  For example, inventing a new vaccine for Covid-19 coronavirus is a strategic launch with huge promise of brand success.  An aqua gel based non-staining and fast acting topical pain reliever is also a strategic growth driver.  A toothpaste product that produces remineralization of enamel through direct mineral deposition and layering effect rather than through saturation of saliva - and then contributing to tooth remineralization - is a superior strategic force.  Gaining the first choice position, for supply of a larger tender in government is a strategic input. 

Tactical on the other hand, as opposed to these long shot advantages is more to do with the way field personnel operate in the market.  The activities done by field personnel to wrest prescription flow in their favor, ensuring more personal order bookings (POBs) through bundled offers or gifts, and taking more pharmacy shelf space is tactical. Tactics also refers to the CRM customer relationship management activities, increased call frequency and repeat call methods.  So tactical refers to the activities done in contact with market operators at the market level.  Verily: The strategy is direction towards the goal. Tactics are the action taken to support the strategy (Ref.: https://www.mmmatters.com/blog/strategic-marketing-vs-tactical-marketinghttps://www.mmmatters.com/blog/strategic-marketing-vs-tactical-marketing).

Whether, one plays on strategy strength or tactical power, the outputs are always to increase brand sales, brand profits and brand valuation.  These three outcomes provide strength to the organization. 

Pharma MNCs have held the strategic advantage and largely used strategy as the growth driver launching high potential R and D based unique products.  This has given them market-maker status.  However, Indian companies have largely provided me-too products, converting doctors from MNC brands to their brands.  This has been done through CRM methods, repeat calls, improved doctor coverage (going to places where MNC MRs will not cover such as microinteriors), sales promotional bonus offers, high incentive earnings for field personnel, and price advantage of Indian products.  Thus, MNCs are largely strategy driven and Indian companies are more of tactics – driven.  Both are valid approaches, one plays on the strength of oneself and weakness of others to create a space in the marketplace.

Thus, strategy and tactic trade – offs are routinely done to ultimately taste the defined market success.  A pharma company may have mainly a strategy driver approach, or it tastes success through tactical drivers.  It is not prudent to be hyperfocused on either methods, one does what fits the bill most - based on one’s strengths and weaknesses.  So what a company uses – more of strategy or more of tactics depends finally on how it operates.  The thumb rule however is that Indian pharma companies build their success through tactical drivers - principally incentives to field personnel – particularly the smaller firms.  Larger Indian firms like DRL can afford to invest on strategy as they have gained scale.  When small Indian firms put more focus on strategy and less on tactics, growth will suffer.  Tactical advantage and tactical growth driver approach is critical for small Indian pharma firms aiming for growth to next level.