1. Media Management 2304
Topic 1: What is strategy?
Erik Bengtson - ebengt@kth.se

2. What is strategy?
Vision: ”What we want”
Mission: ”Why we exist” - Motivation for being in business.
Strategy: Choice of business model through which the firm
will compete in the marketplace.
Business model - The way the organization operates and
creates value for its stakeholders.
Erik Bengtson - ebengt@kth.se Media Management 2304

3. What is strategy?
My definition: certain tactics used in certain situations
to approach a certain goal.
Erik Bengtson - ebengt@kth.se Media Management 2304

4. Creator of Half-Life and content delivery system Steam (”The
ultimate online game platform”).
Steam: growth over 150% year-over-year, large part because of
independent titles. Over 1100 games.
Gabe Newell, co-founder and CEO Valve
"The PS3 is a total disaster on so many levels, I
think It's really clear that Sony lost track of
what customers and what developers wanted."
Erik Bengtson - ebengt@kth.se Media Management 2304

5. Mission: Creating good games (duh).
Business model: Free additions to games to increase
longevity of sales (open source). Selling games via Steam.
Strategy: To reach out to a large target group via
Steam, because of the variety of games (independent
and commercial titles).
Erik Bengtson - ebengt@kth.se Media Management 2304

6. Strategy statement
”Valve offers the best games, and people all over the world
gather to play them together via Steam.With this tool we will
continue to provide fantastic titles, both old and new.”
Erik Bengtson - ebengt@kth.se Media Management 2304

7. Sources:
• http://www.computerandvideogames.com/155309/news/
valve-ps3-a-total-disaster-on-so-many-levels/
• http://www.gamasutra.com/php-bin/news_index.php?
story=17744
• http://www.valvesoftware.com
• From strategy to business model and onto tactics (2010) -
Casadesus & Ricart (C&R)
• Can You Say What Your Strategy Is? (2008) - David J. Collis
and Michael G. Rukstad
• Building Your Company’s Vision (1996) - Collins & Porras
Erik Bengtson - ebengt@kth.se Media Management 2304