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Article
Publication date: 1 April 2003

Vivek Kapur, John Peters and Saul Berman

Profound and lasting changes are afoot in the high‐tech industry. Only those high‐tech companies that align their business models for the new horizontal and…

Abstract

Profound and lasting changes are afoot in the high‐tech industry. Only those high‐tech companies that align their business models for the new horizontal and hypercompetitive future will succeed. The seven deadly signs of the new competitive environment are: (1) growing downward pressure on price with an ever‐increasing demand for greater performance; (2) greater complexity for customers as they face the unbundling of hardware options, integration choices, and multi‐company business coordination; (3) a new distribution of value: greater value to innovative component makers and solution integrators; less value for product design and assembly; (4) branding and customer relationships will differentiate commodity products; (5) collaborative networks will emerge; (6) global supply and global customers will mean global organizations; (7) competitors will encroach horizontally. Recommendation: proceed with a five‐step approach to develop a new winning strategy: (1) pick a horizontal space; (2) redefine and Web‐enable your value propositions; (3) assemble your collaborative networks; (4) integrate your internal operations globally; and (5) realign your organization and technology. Studies demonstrate that during downturns, advantage shifts to companies that continue to invest strategically.

Details

Strategy & Leadership, vol. 31 no. 2
Type: Research Article
ISSN: 1087-8572

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Article
Publication date: 1 January 2006

Vivek Kapur, Jeffere Ferris, John Juliano and Saul J. Berman

This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three

Abstract

Purpose

This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three vital areas: course, capability and conviction. IBM calls this the “3Cs model.”

Design/methodology/approach

The IBM research team developed a database of growth and shareholder return performance for companies included in the S&P Global 1200. Starting with the 2003 list, the team added the firms that “fell off” the listing over the preceding decade. The study worked with a final list of 1,238 companies with complete data over the decade. Collectively, this group recorded median annual revenue growth of 8.5 percent and median TSR growth of 8.8 percent.

Findings

The most successful growers: have a clear point of view on their industry, addressing both where it is headed and how they will create value in its new form or environment; are iconoclasts who evolve their product‐market portfolio on an ongoing basis; sustain the growth quest by developing multiple growth initiatives that are backed by ongoing cost and asset management to create funding; foster a culture that responds to the necessity of change, and a cadre of leaders with the passion and follow through to make the change stick

Research limitations/implications

The article provides a sound intellectual background for researchers who want to compile in‐depth case studies.

Practical implications

The article advises corporate leaders to: assess their company's status against your growth ambitions and the 3C model winners follow; develop a point of view on the future and its opportunities; evolve your product market portfolio and initiatives; develop a competitive model; get to know your capabilities and align them with opportunities.

Originality/value

Contrary to conventional wisdom, firms with the will to be successful growers can break free of perceived constraints related to size, industry boundaries and geographic neighborhood.

Details

Strategy & Leadership, vol. 34 no. 1
Type: Research Article
ISSN: 1087-8572

Keywords

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Article
Publication date: 1 December 2005

Vivek Kapur, Jeffere Ferris, John Juliano and Saul J. Berman

Growth is the top priority on the CEO agenda, but the question they confront is “What factors constrain growth?” And, “How do successful companies drive growth?”

Abstract

Purpose

Growth is the top priority on the CEO agenda, but the question they confront is “What factors constrain growth?” And, “How do successful companies drive growth?”

Design/methodology/approach

IBM Institute for Business Value conducted a global study that focused on three questions: Who are the successful growers and what patterns are associated with them? What do successful growers do differently? How can other companies apply what they do?

Findings

The major finding were: that limits to growth are often self‐imposed and, as such, can be overcome; firms with the will to be successful growers can break free of perceived constraints related to size, industry boundaries and geographic neighborhood; and despite the widely held belief that mergers and acquisitions inherently destroy value for the acquirer, companies that learn to become successful growers use M&A strategies effectively.

Research limitations/implications

Looking at 1,238 Global S&P 1200 companies, the IBM team analyzed the patterns of revenue growth and shareholder value creation over the decade, segmenting results by four component geographies and 18 industry groups. It selected three industries (consumer products, telecom services and electronics) for detailed assessment, developing cases studies for about 20 companies in each industry, picked to represent a range of successful and unsuccessful results.

Practical implications

Winning the growth game requires companies to excel in three vital areas: course, capability and conviction. Successful growers set the right growth direction – the course – by forming a clear point of view on the future, evolving the product‐market portfolio without being limited by history, building a competitive model to win and pursuing reinforcing initiatives to sustain growth. They truly understand their capabilities – based on realistic assessments of their strengths and limitations – and evolve their operational model to support the growth strategy. Finally, while many companies develop excellent plans, truly successful growers build organization‐wide conviction that translates intent into action for everyone from top leaders to front line managers.

Originality/value

The message is clear: neighborhood is not destiny. Executives have more room to be ambitious than they tend to believe. Winning companies set ambitious growth plans regardless of industry or geographic “limits.” They aim for targets above and beyond what they and their peers typically expect.

Details

Strategy & Leadership, vol. 33 no. 6
Type: Research Article
ISSN: 1087-8572

Keywords

Content available
Article
Publication date: 1 December 2004

Abstract

Details

Strategy & Leadership, vol. 32 no. 6
Type: Research Article
ISSN: 1087-8572

Content available
Article
Publication date: 1 April 2003

Robert M. Randall

Abstract

Details

Strategy & Leadership, vol. 31 no. 2
Type: Research Article
ISSN: 1087-8572

Content available
Article
Publication date: 1 January 2006

Catherine Gorrell

Abstract

Details

Strategy & Leadership, vol. 34 no. 1
Type: Research Article
ISSN: 1087-8572

Abstract

Details

Strategy & Leadership, vol. 31 no. 3
Type: Research Article
ISSN: 1087-8572

Content available
Article
Publication date: 1 December 2005

Catherine Gorrell

Abstract

Details

Strategy & Leadership, vol. 33 no. 6
Type: Research Article
ISSN: 1087-8572

Abstract

Details

Strategy & Leadership, vol. 31 no. 2
Type: Research Article
ISSN: 1087-8572

Content available
Article
Publication date: 1 December 2005

Robert M. Randall

Abstract

Details

Strategy & Leadership, vol. 33 no. 6
Type: Research Article
ISSN: 1087-8572

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