The firms like Intel,3M,Microsoft and Apple have effectively used Competing on the edge Strategy and thus they have outperformed in their respective industry. For every firm it is not possible to go for this strategy because of the limitations of financial and human capital resources. Competing on the edge strategy best works for financially strong firms under volatile market conditions because it requires unlimited vigor to stimulate rhythmic fast paced change that actually result from heavy investment in human capital growth that brought unique creative ideas and heavy investments in the risky ventures because the good thing of venture capitalism is that the success of a few opted ventures can assure the success of the entire firms’ portfolios. On the other hand the small firms usually remain risk aversive due to limited resources.
Going for competing on the edge strategy is just like the reverse swing yorker of a fast bowler. A bowler can only bowl a swinging y
orker after putting enormous power and energy likewise going for competing on the edge strategy requires tremendous exertion of efforts, unique powerful resources and exposure to risk .Where a misplaced swinging yorker can go for a boundary, there a new business venture is also exposed to the risk of failure. So high level business success not only requires continuous effort but it also involves risk.
orker after putting enormous power and energy likewise going for competing on the edge strategy requires tremendous exertion of efforts, unique powerful resources and exposure to risk .Where a misplaced swinging yorker can go for a boundary, there a new business venture is also exposed to the risk of failure. So high level business success not only requires continuous effort but it also involves risk.
10 comments:
I shall agree to Bodla after he explained it through the example of a fast bowler. Yes, the small firms cannot exert all their effort to take a chance (we all know Competing on the Edge is not an efficient strategy always).
However, small firms can start thinking on the lines of Competing on the Edge. May be some day they are able to align their relatively limited resources such a way that they can actually practise Competing on the Edge.
@zubair
agree!small firms can apply this strategy within their limited resources.Innovation can be done but a low level but consistency should be maintained to acquire a better position in the market.
Thanks Hira, a lot of small efforts make some big differences.
@ Zubair
yess, you are absolutely right, small firms have to be very smart in the context of competing on the edge strategy if they want to outcompete big market players in any industry...
I disagree with this point that small firms cannot follow the Competing on the edge Strategy .
Microsoft , Intel , , 3M , Dell and the other companies about whom this book explain were small firms in the beginning .
what these firms did , they did not study the competing on the Edge . what they did Competing on the Edge study it and give their strategies some name.
The people which are going to start their own business , this book provides a route to understand the complexity in the business either it is related to innovation , collaboration , or experienced people .
In my view point company example and concepts will facilitate during interview also.
@ irfan
I did n't say that small firms can't use it, I said that small firms have to be smart enough to use it....
@ irfan
I did n't say that small firms can't use it, I said that small firms have to be smart enough to use it....
@ irfan
I did n't say that small firms can't use it, I said that small firms have to be smart enough to use it....
@ abdullah
but initially you give this point in the post taht small firms can not use it.
@ irfan
yes i agree with your point. I have same response towards this discussion. If an indiviual can aply COE to him/her, then why not a small firm.
Post a Comment