The point of departure for sound strategic analysis is an understanding of the core competence of the company. A realistic understanding of the core competence serves as the foundation on which to build achievable strategy.
Today’s successful businesses recognize that it is possible to shape consumer needs and therefore shape the market, driving demand in such a way that the firm is better able to meet these needs. Instead of being a static, one-sided equation, it is a two-sided equation with the firm’s competencies on one side and its ability to develop demand for benefits that can be generated from those competencies on the other. This is the key to sustainable competitive advantage.
