We work with clients to help them gain clarity on the underlying forces that shape their industry dynamics and market profitability. These forces and rivalries play a key role in understanding the opportunities available to create a sustainable position that ultimately leads to value creation. Not just in the short term, but over the medium and long term.
Unfortunately, many organisations fail to complete this analysis work prior to commencing strategy development.
Strategy is the deliberate search for a plan of action that will develop a company’s competitive advantage and compound it. Ultimately the goal of effective corporate strategy is value creation. While competitive forces often erode a company’s capacity to create value, successful companies build strategies which are able to withstand these forces. Competitors that make their living in the same way cannot coexist (Gause’s Principle).
Aligning the entire business around an effective competitive strategy and growth plan is a sure method of achieving sustainable competitive advantage.
Firms that are able to fully align their business around an effective strategy maximise their competitive advantage period and achieve greater profitability.
Strategy is about creating “fit” among a firm’s unique set of activities that the competition finds difficult to replicate. Aligning strategy, organisation and people creates high performance organisations that competitors find difficult to compete against.
Achieving ‘third-order fit’ requires three key elements to reinforce each other: