The problem of strategy in today’s world
Most of the classical concepts of strategy creation (developed mostly in the 20th century, by the way) are based on the following general…
Most of the classical concepts of strategy creation (developed mostly in the 20th century, by the way) are based on the following general algorithm:
1. A company must scrutinize external environmental factors and forecasts
2. A company must create an image of the future of its industry and the industries in which it plans to operate
3. A company must find the most attractive place which will suit it from various points of view, taking into account its strengths and weaknesses.
The approach is logical enough, but there are several important flaws:
1. Collecting information to analyse markets and trends is an extremely labour-intensive task, and only large companies can afford to reserve employees only for it.
2. The future cannot be predicted because it does not exist. We can speak of possible scenarios and their probabilities, but no more.
3. Collecting information on new markets in which a company has not been operating is fraught with a very high margin of error. No matter how carefully a …