3. WHAT ARE THE PROBLEMS?
• With a more detailed approach of strategic
management at that time, why did some companies
that used to have their golden days fail in global
competition?
• Poor and short-term effects of restructuring and
reengineering
• Overemphasis in a clearly defined framework of
strategic management
• Lack of the view points for the future
4. REFLECTION OF RESTRUCTURING
• A vicious circle:
• Restructuring or reengineering
• Denominator management
• Less profitable resulting from giving up potential
competence
• Incapability of competing in global market
• Poor overall performance
5. REFLECTION OF REENGINEERING
• Only expending all energies to stay in the
competition but not able to be the market leader
• Neglecting the vision for the future
• Doing what “everyone is doing”
• Could be eliminated once the business
environment has a sudden change
6. REFLECTION OF STRATEGIC
MANAGEMENT
Environmental Analyzing Analyzing Analyzing
Macro- Micro- Internal
Scanning Environment Environment Environment
Strategy Corporate Business Functional
Formulation Level Level Level
• The approach we have being using is not
future-oriented and mostly focus on the current
situation
7. REFLECTION OF FUTURE -
ORIENTATION
• What should be striven?
• Market Share versus Opportunity Share
• New businesses have to be discovered rather
than be analyzed
• Competences could be out-of-date when
competition becomes intensive
9. SETTING A NEW MINDSET
• Focus on capturing the opportunity share
• Understanding of interfrim competition
• Requiring a integrated system
• The use of strategy as addressing the future
direction and destination rather than applying for
the maximization of short-term profits
• Perseverance for the protracted war of multistage
competition
10. WHAT IS THE RACE WE ARE IN?
Competition for
Market Position
Competition to and Market
Foreshorten Share
Migration Paths
Competition for
Industry
Foresight and
Intellectual
Leadership
12. COMPETING FOR INDUSTRY
FORESIGHT
• Think beyond the business assumptions!
• The boundaries between businesses, between products, and
between served customers are blurred and overlapping.
• Top management should be able to observe and predict the
future trend of business in stead of the firm’s current or
short-term performance.
• Firms have to challenge those assumptions and embrace
curiosity of imaging a different future so as to discover
unexploited opportunities that lie underneath those
undiscovered or unsatisfied human needs.
13. STRATEGIC ARCHITECTURE
• “a high-level blueprint for the deployment of new
functionalities, the acquisition of new competencies or
the he reconfiguring of migration of existing
competencies, and the interface with customers” (p.
118)
• It requires a long-term perspective
• It requires a willingness of risk-taking
• It requires a bigger ambition
14. STRATEGIC INTENT
• Resourcefulness can be the supplement of limited strategic resources.
• Strategic intent is the source providing emotional and intellectual energy to
break through the limitations, so it implies:
• A sense of direction
• A sense of discovery
• A sense of destiny
• It has to be personalized to set clear corporate challenges that draw
everyone’s attention on the next key advantage or capability to be built
• It has to be clearly communicated throughout the whole organization and get
everyone involved so as to develop the collective intelligence
15. RESOURCE LEVERAGE
• Resources are limited and hard to obtained, make the best
use of resource is crucial for firms to compete for the future.
Concentrating
Accumulating Conserving Complementing
Recovering
17. SHAPE THE FUTURE
• A firm has to be able to transform the intellectual leadership into
market leadership by creating the virtual monopoly in a
particular new product category.
• Migration paths need to be carefully managed during the
competition:
• Developing intellectual leadership (foresight and strategic architecture)
• Shaping and foreshortening the migration paths
• Competing market power and position
• Maximizing share of influence by coalitions and setting industrial
standards.
18. CORE COMPETENCES
• Core competences are those integrated
skills that are not easy for competitors to
imitate, can be leveraged widely to many
products and markets as well as contribute
to the end consumer’s experienced benefits.
• What managers should bear in mind that:
• Core competences needs to be clearly
identified
• Core competences needs to be widely
deployed
• New core competences need to be
developed continuously
