Unit 1 Shared Activity: Strategy As Long-Term Intent And Systemic

STRATEGY AND INNOVATIONNameCourseTutor’s NameDateStrategy and InnovationStrategic intent is a crystallisation of an organisational vision into strategies for developing capability to overcome competition and win markets through competitive advantage (Hamel & Prahalad, 1989). Competitive advantage is possession of capabilities that competitors do not have or cannot easily copy. Hamel & Prahalad, (1989) describe strategic intent as an obsession for winning at all levels of an organisation that overcomes limitations of resource and capability for a long time. Komatsu and McDonalds have been chosen to demonstatrate strategic intent posture and lack of strategic intent respectively.Komatsu's articulated strategic intent and strategic implicationsKomatsu's organisational goal was to become the top-selling earthmover company. The world’s top-selling manufacturer of earthmovers at the time was the Caterpillar Tractor Company. Komatsu's market position as second top-selling earth mover company came under direct threat from a joint venture of Mitsubishi and the Caterpillar Tractor Company. Komatsu responded to this threat with its declared strategic intent of encircling the Caterpillar Tractor Company. Instead of a direct attack on the new threat, Komatsu encircled the Caterpillar Tractor Company by building assembly