● The 2007 global financial meltdown reaffirmed the perils of pursuing heady growth through untested strategies, as firms in industries from finance to retailing to automobiles strayed too far from their core businesses and suffered the consequences.
● A renewed focus on the core is more critical than ever as firms seek to rebuild their competitive advantage coming out of the downturn - and that a strong core will be the foundation for successful expansion as the economy recovers.
● Based on years of research and analysis and fresh examples from firms responding to the current downturn, the outlines what today's executives and managers need to do now to revitalize their core, identify the next wave of profitable growth, and build on it successfully.
● Rewire how companies can:
☆Develop a strong, well-defined core and use it to establish a leadership position
☆ Follow the golden rule of strategy: discourage competitors from investing in your core
☆ Assess whether your core is operating at its full potential
☆ Uncover hidden assets in your core that provide the seeds for new growth
☆ Find a repeatable formula to apply core business strengths in adjacent markets
☆ Building on powerful and proven ideas to meet today's formidable business challenges, this is the back-to-basics strategy field guide no manager should be without.
● This renewed focus on the core is more critical than ever.
● Only 11% of companies manage to grow profits and revenues by 5.5% or more over a 10-year period, and earn back their cost of capital.
● While current business wisdom calls for "new rules" for strategy and organization, that most growth strategies fail to deliver value—or even destroy it—primarily because they wrongly diversify from the core business.
● This timeless strategic precept—building market power in a well-defined core—remains the key source of competitive advantage and the most viable platform for successful expansion.
● Striking the right balance between focusing on your core business and expanding into new areas has never been more challenging.
What We Think 🤔
Reinvention starts here
Advances in digital technologies, data and AI are changing everything. How you compete. How you define and deliver value. Even how you transform to be the next best version of yourself.
These advances have never been more critical, nor more necessary. That’s because unprecedented uncertainty and volatility call for businesses in every industry to activate new levels of innovation and launch rapid transformations that only digital technologies can make possible.
In short, today’s business environment demands total enterprise reinvention.
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