Competing on Resorces

In: Business and Management

Submitted By victorp
Words 7627
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DAVID J. COLLIS AND CYNTHIA A. MONTGOMERY

Competing on Resources
AS RECENTLY AS

rate level. In the 1980s, it turned out that corporations were 10 years ago, we thought we knew most of often destroying value by owning the very divisions that had what we needed to know about strategy. Portfolio planning, seemed to fit so nicely in their growth/share matrices. Threatthe experience curve, PIMS, Michael E. Porter’s five forces – ened by smaller, less hierarchical competitors, many corporate tools like these brought rigor and legitimacy to strategy at stalwarts either suffered devastating setbacks (IBM, Digital, both the business unit and the corporate level. Leading comGeneral Motors, and Westinghouse) or underwent dramatic panies, such as General Electric, built large staffs that reflected transformation programs and internal reorganizations (GE growing confidence in the value of strategic planning. Stratand ABB). By the late 1980s, large multibusiegy consulting boutiques expanded rapidly ness corporations were struggling to justify and achieved widespread recognition. How EDITOR’S NOTE: This influential their existence. different the landscape looks today. The 1995 article (originally published Not surprisingly, waves of new approaches armies of planners have all but disappeared, as “Competing on Resources: to strategy were proposed to address these swept away by the turbulence of the past deStrategy in the 1990s”) intromultiple assaults on the premises of strategic cade. On multiple fronts, strategy has come duced the resource-based view planning. Many focused inward. The lessons under fire. of the firm to practitioners hungry from Tom Peters and Bob Waterman’s “excelAt the business unit level, the pace of for a new approach to strategy. lent” companies led the way, closely followed global competition and technological It brings together the strengths by…...

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