Hamel & Prahalad’s Strategic Intent

20 01 2010

LOOK at all the possibilities!!!

Successful companies start with an ambition that is also known as strategic intent to create an obsession within the organization to reach a high, attainable goal that is important to employees.

Participation is a key part in the company to reach global leadership. There is a reciprocal responsibility which means that all employees need to contribute to the success (or failure) of the company. Many businesses are capable of strategic intent, but fail to sustain participation and motivation in the management process. They also do not know understand the importance of competitive innovation.

Innovation is key in our society to achieve a sustainable competitive advantage, which is only accomplished by the companies that have a strategic intent to succeed. Rival companies attempt to imitate the advantage of their competitors, but is this really attainable or feasible to carry out? It would be more beneficial for a company to work outside of their resources to achieve a new competitive advantage that is unique to the company’s own strengths. This competitive innovation is unpredictable and will surprise other competitors in the industry as a result.

The Japanese model lists four approaches to competitive innovation.
1. Building Layers of Advantage – risk is decreased with more competitive advantages.
2. Searching for Loose Bricks – it is important to find out weaknesses in every competitor and capitalize on the area that is difficult for them to attain.
3. Changing the Terms of Engagement – do not follow the industry standard. The barriers to imitation are high, but they can be reduced by changing the rules of the game.
4. Competing through Collaboration – take advantage of the opportunity to learn from the competition and document their failures to avoid making the same mistake.

It is essential that companies are always coming up with new ideas and inspire the employees to be creative to capture the essence of winning.

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