“Most companies owe their initial success to a unique strategic position involving clear tradeoffs….the passage of time and the pressures of growth, however, led to compromises that were at first almost imperceptible. Through a succession of incremental changes that each seemed sensible at the time, many established companies have compromised their way to me-too activities just like their rivals…Through incremental additions of product varieties; incremental efforts to service new customer groups; and emulation of rival’s activities; the existing company loses its clear competitive position.”

– Michael Porter

 

How to Determine Your Value Share in Three Simple Steps

Knowing your current market share is important. It tells you something about how well you are doing relative to the competition. But anticipating what your future market share will be is more important. After all, your current market share is a result from past actions, while the only thing you can still influence is your…

“Strategy is stuck. If you dropped into a boardroom discussion or an executive team meeting, chances are you’d hear a lot of strategic thinking based on ideas and frameworks designed in, and for, a different era. The biggies—such as Michael Porter’s five forces analysis, BCG’s growth-share matrix for analyzing corporate portfolios, and Hamel and Prahalad’s core competence of the firm—are all tremendously important ideas. Many strategies today are still informed by them. But virtually all strategy frameworks and tools in use today are based on a single dominant idea: that the purpose of strategy is to achieve a sustainable competitive advantage. This idea is strategy’s most fundamental concept. It’s every company’s holy grail. And it’s no longer relevant for more and more companies.”

– Rita Gunther McGrath

What is Competitive Alignment?

Building on the previous alignment related posts made by my Co-Founder Jeroen, this post will focus on clearly defining competitive alignment. More specifically, this post will define competitive alignment as part of a step-wise, iterative and modular process. Where the focus is on creating value via easily updated, learning-by-doing steps that produce the right results. Before we…

What Is Strategy?

As argued in my previous two posts, today’s world asks for strategy that is grounded. There I explained why this is the case and what being grounded means. In this post and the following ones I will discuss in more detail what this implies exactly. The first step in that is to define what we actually mean with…

Should Strategy Become More Agile?

In my previous posts I summarized the broad and deep concerns about the way strategy is currently carried out. In the academic literature and popular business press we find numerous ideas for improvement. In this post and the next four, I discuss the five most important solutions that are offered. The first of these is that…