Strategic Stretch
Strategic Intent is seen as going beyond Business as Usual Seen as Core Competency in Practice Apple and Honda's strategic intent was global dominance. Compare with Strategic Fit which doesn't have a long term component. Basically they used their core competences to achieve Strategic Intent. The difference between Intent and Resources is call Strategic Stretch.
Examples:
- Apple beat Microsoft in mobile apps market
- Google beat Microsoft is search and categorization of networked information
- CNN beat CBS is news and current affairs presentation
Firms first need to understand the competitive environment - e.g. those companies winning and losing market share. The next step is to diagnose the competitive environment. e.g. Its market segments, potential for profitability and growth.
Industrial structure analysis points us to the what of competitiveness. i.e What make the company more profitable. News whats have been exhorted such as Six Sigma, become customer led, compete on time. Understanding the what of competitiveness is a prerequisite to catching up. Understanding the why is the prerequisite for getting out in front. Who do some companies continually redefine the competitive environment e.g. Apple while others just follow.
To be expanded to include Strategy as Stretch and Leverage - Hamel and Prahalad HBR March - April 1993
