Strategic Intent

by Gary Hamel, C.K. Prahalad

In this McKinsey Award-winning article, first published in May 1989, Gary Hamel and C.K. Prahalad explain that Western companies have wasted too much time and energy replicating the cost and quality advantages their global competitors already experience. Canon and other world-class competitors have taken a different approach to one of strategic intent. They begin with a goal that exceeds the company's present grasp and existing "Beat Xerox"; "encircle Caterpillar." Then they rally the organization to close the gap by setting challenges that focus employees' efforts in the near to medium "Build a personal copier to sell for $1,000"; "cut product development time by 75%." Year after year, they emphasize competitive innovation―building a portfolio of competitive advantages; searching markets for "loose bricks" that rivals have left underdefended; changing the terms of competitive engagement to avoid playing by the leader's rules. The result is a global leadership position and an approach to competition that has reduced larger, stronger Western rivals to playing an endless game of catch-up.

Genres: Business, Management

101 pages, Paperback

First published January 1, 2010

About the author

Dr. Gary P. Hamel is an American management expert. He is a founder of Strategos, an international management consulting firm based in Chicago.

Gary Hamel is Professor of Strategic Management at London Business School. He has researched strategy development in a multinational context.

Reviews

[Sukhamaya Swain · Rating 5 out of 5]

Very useful reading for every level of management. Though a slightly old case study, the learnings and inferences are relevant today too. The names of the actors and companies mentioned can be replaced by today's names. As I have always believed, competitions and applicable strategies are all covered in history and these are sheer science.
The best part of such case studies is that it alleviates one to the level of CEOs at least for the time taken from the first to the last page.

[Dr Mohamed Ibrahim, MBA, Ph.D · Rating 4 out of 5]

One of the best thing to read if you're the person of business. If you're still at the beginning of your business readings not recommended to start with. The book stats clearly how to overcome your competitors without needing to expand your boundaries and getting to finance. There are lots of proven cases that support the methodologies. It just needs to be updated to what's going on around these days as it has been written in 1989.

You may watch this excerpt:
https://www.youtube.com/watch?v=sbIkb...

[JULIA TROCHE · Rating 5 out of 5]

As relevant as ever!

This article is a must-read for anyone interested in understanding strategy, and most of all, competitive differentiation. Good for middle and top managers with the responsibility to make things happen in an organization....as change agents.

[Boon · Rating 4 out of 5]

Even though this article has been published since 30 years ago, it’s still quite useful and in trend. Japanese companies now are already quite successful. This book explained why they can compete with the western companies with limited resources by unlocking the limitation of strategic thinking.

[Brittany Podolak · Rating 5 out of 5]

Great little book about operationalizing strategies.

[Grace Hsia · Rating 5 out of 5]

Useful book and set of frameworks for thinking about how to win based on a strategic direction and how to set it. I agree 100% on it being a must read and making sure to understand it is a stronger fit for established ventures seeking strategy setting against incumbent and new competitors rather than a good fit for startups. Still the case studies are noteworthy and the strategies a strong fit for today's global competitive environment.