What Is the Theory of Your Firm? – Harvard Business Review, June 2013 Edition: “If asked to define strategy, most executives would probably come up with something like this: Strategy involves discovering and targeting attractive markets and then crafting positions that deliver sustained competitive advantage in them.”
Key points: your corporate theory should be assessed against the three “sights”: Foresight, Insight and Cross-sight.
- Foresight: you understand what the customers want.
- Insight: you know what can me the difference internally (assets and activities).
- Cross-sight: You look into complementarity outside your current business for potential value creation.
The author is Todd Zenger. He uses the cases of the Walt Disney Company, Apple and Mittal Steel as good examples. He highlights AT&T as an example of a company that could not get its strategy together.