Strategic Intent Essay

1427 Words Feb 5th, 2014 6 Pages
Strategic Intent
G. Hamel and C.K. Prahalad (1989)
A Critical Analysis

Word count: 1098

Introduction
"Give yourself an even greater challenge than the one you are trying to master and you will develop the powers necessary to overcome the original difficulty." William J. Bennett says it in one of his best-selling books. This is proven to be true by a significant number of successful individuals all over the world, but what about an organization or an entity? IPO model reveals that organisation characteristics which make enormous impacts on organisation results are the combination of individual employee’s characteristics. Eventually, the implications of the quote should be true for an organisation. Related to the implications, Hamel
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One of the main purposes of strategy is to achieve competitive advantage. Many scholars have contributed their work into competitive advantage regarding resource-based view as well as positioning view. It is believed that the theory of competitive advantage based on the resources a firm develops or acquires to implement product market strategy (Wernerfelt, 1984) can be considered a complement or dual to Porter’s (1980) theory which is based on a firm's product market position. In other paper, Peteraf (1993) presents the use of resource heterogeneity and resource mobility for the sake of retaining long-term competitive advantages. Besides that, in 1990, Hamel and Prahalad (1990) had also taken another step into the stream of “resource-based” work by their competence-based approach. On the other hand, the article appraises a different view of pursuing competitive advantage by corporate challenges and competitive innovation. In the similar theme with the article, Porter (1990) argues that, in normal cases, innovation is the result of unusual effort which can be arisen from pressure, necessity or adversity... In comparison, extracting from the successes of Japanese companies in 1970s and 1980s, Hamel and Prahalad (1989) summarise 4 methods to capture competitive innovation as

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