Although it had equipment capable of doing serious damage, the problem for the Luftwaffe was its unclear strategy and poor intelligence. OKL had not been informed that Britain was to be considered a potential opponent until early 1938. It had no time to gather reliable intelligence on Britain's industries. Moreover, OKL could not settle on an appropriate strategy. German planners had to decide whether the Luftwaffe should deliver the weight of its attacks against a specific segment of British industry such as aircraft factories, or against a system of interrelated industries such as Britain's import and distribution network, or even in a blow aimed at breaking the morale of the British population. The Luftwaffe's strategy became increasingly aimless over the winter of 1940–1941. Disputes among the OKL staff revolved more around tactics than strategy. This method condemned the offensive over Britain to failure before it began.

Poor intelligence and what other problem made it difficult for the Luftwaffe to do extreme damage?