Strategy 1 teaches about how reward for virtuous behaviour and punishment for selfish behaviour strengthens a state as it promotes virtuous people. Strategy 2 is all about the balance, and strategy 3 is all about instilling wisdom and virtuous behaviour in the people.
This covers strategies of running a nation similar to the principe genre of books, howeber it covers the concepts of virtue in a much more broad sense, instead of focussing on how an individual can express virtue it more covers the effects of virtue if certain groups of people express it and if they express the opposite.
This book is instead not so much about virtue for virtue sake and more about walking the fine line between virtue and vice in order to instill control and order in the people.