Featured Strategy Articles
Rafael Ramírez et al.
A new approach to scenario planning can help companies reframe their long-term strategies.
When you manage complex problems as if they’re complicated, you’re setting your company up to fail.
Forecasting is recognizing how current patterns may impact the future — and it’s a learnable skill.
Paul J.H. Schoemaker and Philip E. Tetlock
The authors examine how managers can combine a sophisticated understanding of human decision making with technology-enabled insights to make smarter choices in the face of uncertainty and complexity. Integrating the two streams of knowledge is not easy, but once management teams learn how to blend them, the advantages can be substantial.
What Is the Role of the Board?
Robert C. Pozen
Many companies’ decisions about share repurchases are handled mainly by management rather than boards — with repercussions for capital allocation. Boards should carefully balance the capital needed for repurchases against its use in value creation via internal development or external acquisitions — and be skeptical of repurchase programs financed by debt rather than profits.
High-profile accounting and corporate governance scandals have resulted in significant changes in the structure of corporate boards of directors, in particular the development of independent boards in which the CEO is the only employee director. The downside: Independent board members may not understand the business well enough to make optimal strategic decisions.
Business Model Diversification
Richard Schmalensee and David S. Evans, interviewed by Martha E. Mangelsdorf
There’s probably never been a better time for platform businesses. But they aren’t easy to launch.
Paolo Aversa et al.
Business model diversification requires careful assessments of each model’s strategic contributions.
David A. Bray
Faced with rapid global, social, and marketplace changes, companies need effective ways to adapt.
Achieving Strategic Goals Through Alliances
The Chinese telecom company Huawei has used strategic partnerships to gain ground in Europe.
David Lopez-Berzosa et al.
Tech consortia help reduce patent risk, but managers must weigh the pros and cons for innovation.
Ha Hoang and Frank T. Rothaermel
A strategic framework that eliminates faulty assumptions can help make alliances successful.
Eric Knight et al.
Biomarkers Consortium, a public-private partnership in the health industry, presents five lessons in managing collaboration.
Strategy in a Digital World
April 6, 2017 | Jacques Bughin and Nicolas van Zeebroeck
Although digitization’s disruptive influence is growing rapidly, there’s surprisingly little empirical evidence on the magnitude of digital disruption — nor any showing how companies are reacting on a broad scale. A new global survey of C-suite executives looks at how digitization unfolds across industries and how incumbents are responding. With some notable exceptions, the answer is: “Not well.”
Paths to Success in Global Markets
Ram Mudambi et al.
Some multinationals have a winning India strategy that involves both local and global value chains.
William R. Kerr
Companies entering global markets should identify an approach that best suits their business model.
Shameen Prashantham and George S. Yip
Partnering with emerging-market startups is easier if four key factors can be addressed.
How Industry Compression Affects Your Business
March 23, 2017 | Omar Abbosh, Paul Nunes, Vedrana Savic, and Michael Moore
Accelerating compression of both revenues and profits may rapidly prove fatal to traditional businesses. Consider the accelerating decline of voice calls as a means of communicating via mobile telephone: From 2013 to 2015, average mobile voice revenue per user declined globally by 19%, and a further decline of 26% is expected through 2020. To stave off disaster, incumbents must transform and renew their core operations — while also growing into new businesses and industries.