Even though “strategy” is one of the most frequent and influential words today, its essence remains hidden. This article goes back to the original Sun Tzu’s concept of strategy and shows that the amazingly complex ancient wisdom transcends our common understanding to a great extent. Sun Tzu’s core concepts, such as grand-strategy, the five principles for victory, and the strategic configuration of power, might help us to comprehend the essence of strategy, improve the processes of strategic planning, and contribute to the more balanced development of municipalities, their competitiveness, and sustainability. The article introduces some of Sun Tzu’s core messages and illustrates their usefulness briefly on a case study.