Generic Competitive Strategies Were Yesterday: Successful Companies Now Pursue Hybrid Strategies

on March 08, 2013

Which competitive strategy does your company pursue? Cost leadership or differentiation? If your answer to this question is "both," you are probably on the right track. Today, more and more large-sized companies around the world rely on hybrid strategies that successfully combine low cost and differentiation advantages.

Internet of Things to Change Competitive Landscape – Says Strategy Guru Michael E. Porter

on January 27, 2015

You hear and read it everywhere: The Internet of Things will revolutionize the world as we know it. Smart devices from toasters to family homes which are equipped with microprocessors, data storage, operating systems, software, sensors, and IP addresses, and connected via the Internet will dramatically change the way we produce, market, sale, and use products and services. Great new opportunities for innovation and growth, but also competitive risks will arise in virtually all industries and markets. Anyone who hasn’t quite understood the strategic importance and scope of this game changing technology trend just yet is well advised to prick up his ears, as even strategy guru Michael E. Porter has recently turned his attention to the subject matter putting it way up on the collective strategy agenda.

What Makes a Strategy Successful? - Five Key Insights from Michael E. Porter

on June 28, 2013

On June 2013, Horváth Strategy Network organized a trip for its members to the renowned ZfU International Business School, Switzerland, where Harvard Professor Michael E. Porter was invited to talk about two of his favorite topics: strategy and competition. We were among the lucky ones to be there and would like to share what we learned with our readers in a series of blog posts.

Key Insights from Michael E. Porter - Part 2

on July 15, 2013

The first part of our blog post series summarizing Michael E. Porter’s talk at the ZfU International Business School, Switzerland, focused on what Porter believes is most crucial in making a strategy successful. In the second part, we would like to share with you his comments on how to think strategically.

Are Unique and Complex Strategies Undervalued by Capital Markets?

on February 03, 2014

Michael E. Porter has faced a lot of criticism lately. First, Rita Gunther McGrath overthrew his concept of sustainable competitive advantage in her well-received book The End of Competitive Advantage. And now the recently published Harvard Business Review article Strategy: The Uniqueness Challenge questions his differentiation theory, at least partially. According to Porter, differentiation is one of the three basic types of competitive strategy, and, in many cases, probably the most promising. Todd Zenger, Professor of Business Strategy at Washington University in St. Louis’s Olin Business School and author of the HBR article, however, is convinced that the financial markets systematically undervalue companies with unique and complex strategies – even though these strategies are often the most valuable.