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Strategy as Love, Not War

  • Blog
  • Read Time: 4 min 

MIT Sloan School professor Arnoldo C. Hax, a well-known strategy expert, thinks companies need a different approach to thinking about strategy.

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Confronting Low-End Competition

Every company lives in fear of competitors that offer seemingly similar products for much lower prices. Dealing with such discounters is no simple matter, as Hewlett-Packard, May Department Stores, Salomon Brothers and others have discovered. Nevertheless, various strategies — ignoring or blocking the competitor, strengthening your value proposition or even strategic retreat — can help slow or even stop the low-end competitor without destroying the industry’s profit margins.

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Competitive Pressure Systems: Mapping and Managing Multimarket Contact

Managers typically think that the competitive pressure their companies experience is solely the result of the behavior of their rivals. But, by mapping the system of pressures in which they operate, they can make the optimal choice of competitors, allies and markets to gain superior strategic influence over the evolution of their industry and their organization”s role in it.

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A Dynamic View of Strategy

Strategic failure usually comes from an inability to make clear choices on which customers to target, what products to offer, and how to improve efficiency. Incumbents routinely bow to upstarts that innovate in those areas. The author shows established companies how to prepare for and counter such disruption with a dynamic process of continual strategic renewal.

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