Thoughts on Strategy - C K Prahalad (Prof. of Business, University of
Michigan) - "exploiting the opportunity horizon is what leads to profitable
are three insightful quotations from Prof. Prahalad.
the only model we use represents the company as a portfolio of businesses, then
cost reduction within those businesses appears to be the primary task, sometimes
followed by focus on product line extensions. When we model the corporation as a
portfolio of core competencies, we tend to focus
on new application opportunities. This perspective enhances the focus of
management on new business development."
the served market is important, but exploiting the opportunity horizon is
what leads to profitable growth. We must not just defend markets, but create
markets. Instead of incrementalism in price-performance there must be
stretch price-performance goals; instead of simply benchmarking, currently
popular with many firms, we must outpace the competition. We want to move
from satisfying needs to anticipating needs; from being close to
customers to leading customers; from thinking in terms of products to
focusing on functionality and rapid market incursions; from focusing
on core business to diversifying around core competencies. This is a very
"... conclude with the following thoughts:
Editor: Ron Wells
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Last Updated: January 30, 2018 17:48 -0000