Chapter 4. Designing Strategies with Low Capability Risks
A strategy ultimately succeeds or fails based on whether the capabilities are appropriate for the business model. By now, you have seen how firms run into execution problems, not because of poor execution, but because they did not anticipate the risks in the capabilities needed to execute the strategy. These risks can be traced to three basic sources. There can be a mismatch between the core objectives and the capabilities as we saw in the Continental case in Chapter 2, Three Steps to Design a Low-Risk Strategy. The risks can come from not understanding the complexity in the capability. The risks also may come from the investment needed to acquire the capability.
In this chapter, we primarily ...
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