Competition in business is inevitable, and companies have to ensure that they develop strategies to help them gain a competitive advantage. For instance, companies have developed new marketing approaches, such as using social media to attract more clients and increase their market share. Additionally, aspects such as elasticity of demand and pricing are being used by organizations to determine ways they can meet customer demands. Innovation is also another essential factor that has been encouraged in many corporations since it helps design new products and services that can increase the sales of an organization. Moreover, modern technology has led to changes in various sectors, whereby many businesses are encouraging workers to be innovative and use technology to increase business performance. Garry Hamel and Prahalad have focused on how companies are working hard to match their rivals’ competitive advantages. The authors have used the Strategic Intent article to teach people how managers can ensure that their organizations increase their market share and are more productive.
Readers can notice different central pillars in this reading that can improve business performance. One of the significant factors that the authors have analyzed involves the goal of competitive information. Many managers have failed in their businesses since their goal is competitive imitation. Hamel and Prahalad have stated that organizations should learn ways of containing competitive risks within manageable proportions. In this case, innovation has been encouraged since it enables workers to focus on different ways to exercise and achieve organizational goals.
The authors have also considered competitor analysis since it can impact how a company performs. The approach involves focusing on the existing resources of the competitors. Thus, managers should ensure that they conduct an in-depth analysis to learn new ways they can practice and become more competitive. Analyzing competitors is also vital since it encourages companies to focus on innovation and attract more consumers. Hamel and Prahalad have revealed that managers should focus on innovation since many customers are attracted to new products. Creating rooms for individual and team contributions have been analyzed by Hamel and Prahalad as one of the ways that managers can embrace innovation in businesses. Therefore, one of the significant issues that the authors have addressed is managers’ need to acquire competitive information and utilize innovation instead of imitating rivals.
Creating a new space uniquely suited to an organization’s strengths is another central pillar in the text. Companies should ensure that they utilize their assets to attract and retain customers. Furthermore, many organizations have guaranteed that they use their strengths as a competitive advantage. Hamel and Prahalad have revealed how businesses can increase their market share by ensuring that they seize opportunities in different regions and use them to improve their performance. Some of the factors that the organizations should consider before investing in new markets are the resources and skills. In many cases, companies fail when seizing the opportunities due to a lack of the necessary skills required to ensure that they are effective. The authors have also focused on analyzing ways that other organizations might react after seizing the opportunity. Typically, many companies face competition after introducing new services and products, whereby they experience a decline in their output. Consequently, Hamel and Prahalad educate readers about these changes in businesses due to competition. Although there are various opportunities in various industries, competition is a significant issue that every company should be ready to face.
Strategic intent has also been used to show how it can help firms use their strengths and seize opportunities. Hamel and Prahalad have argued that a strategic plan’s goal is to fold the future back into the present. Hence, organizations can use the approach to focus on the differences that might be experienced in future and ensure that they use the information to seize opportunities and increase business performance. Creativity has also been termed as one of the aspects that should be considered when focusing on strategic intent since it enables companies to foresee industry revolution patterns. Therefore, Hamel and Prahalad have used the text to show how companies can seize opportunities and use innovation to maintain their competitive advantage.
Organizations have different goals that they set to improve their performance. Moreover, having objectives is vitals since it encourages workers to work hard and become more innovative. Hamel and Prahalad have revealed that corporate goals are essential since they guide organizations when implementing their strategies to increase sales. Furthermore, managers can use the business aims to develop new tactics that can increase production. The authors have used Honda’s example to show how creating goals can help a company achieve its objectives. In this case, Honda ensured that it developed its engines to attract more customers and increase its sales.
Hamel and Prahalad have also focused on how competitors should be considered when designing the goals of a company. Managers should guarantee that they have strategies to help the organization remain competitive and achieve its goal despite facing business rivalry. For instance, competitors use cost reduction as a method of attracting more customers. Thus, companies can ensure that they advance their products and services and use technology to attract more customers and guarantee that their goal is achieved. Therefore, the text has crucial information regarding the importance of business goals and how they can be achieved.
Future managers can primarily benefit from the information provided by Hamel and Prahalad in the text. Many people have experienced challenges when given the responsibilities to manage organizations. Failure to develop strategies to ensure that business remains competitive have led to bankruptcy in some corporations. Moreover, globalization has led to increased competition in various industries since many investors are building companies in different countries. Foreign Direct Investment (FDI) has also led to many international companies in multiple nations. Consequently, managers are facing changes in the business due to an increase in competition.
Hamel and Prahalad have provided crucial information to help future managers ensure that their organizations have a competitive advantage. For instance, innovation is one of the aspects that has been encouraged in the text. Managers can encourage workers to be more creative and design new products and services that can attract more customers and increase their company’s market share. Setting goals has also been encouraged and can be used by future managers to expand their organizations’ production. Hamel and Prahalad have revealed that business objectives help companies develop strategic plans that guarantee that business aims are achieved. Analyzing the competitors and focusing on different industry opportunities has also been explored by Hamel and Prahalad. Managers can use the authors’ information and learn how they can analyze market trends and foresee patterns of industry revolution before investing in a particular market. Thus, the text has provided crucial information that can be of great significance to future managers.