Business Models, Strategy, and Tactics are different

• Strategy. The company decides which business it wants to be in and how it will compete, creating a “unique and valuable position involving a distinctive set of activities.” It’s another way of saying, I think, here is what we can do better than anyone else and how we can defend our position in a competitive marketplace.
• Business Model. I like the authors’ description of the business model as the “logic of the company.” This is how the firm organizes and operates, how it delivers value to customers, and how it captures value for stakeholders. It must align with company goals.
• Tactics. Tactics are the steps used to compete in the marketplace, and they are defined largely by the business model. If your business model is built around direct sales, your tactics won’t involve incentives to retailers, for example.

The authors turn to the auto industry for an analogy. For them, strategy is designing and building the car, the business model is the car, and tactics are how you drive the car.