Beware new challengers

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BCG reports on the companies from rapidly developing economies who are growing fast to join the ranks of the multinational elite.  I posted before on the now ancient history of how the big car makers slept while emerging producers stole their business one bite at a time, and this report lists 100 firms who are taking a place at the top table in other industries. No news here for the older companies in those sectors, of course – they are only too aware of the challenge! But are companies in other sectors not yet so threatened alert to the danger that they may be next?

Attention to what competitors are doing – especially new ones –  is a critical skill in strategic management, but often ignored. And usually you can do something about it. Not only can you undermine the strategies of current competitors to the point that they collapse, it is also perfectly possible to pull the ground from under new rivals – and to do so legally, of course! [One short example of how is given in chapter 5 of Strategic Management Dynamics and I plan to say more in future chapters]. You may not stop all the attacks, but holding back just a fraction can make your life a whole lot easier than sitting back and watching.

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