July–August 2021
Article
Harvard Business Review

Why Do So Many Strategies Fail?

Format:Print

Abstract

THE PROBLEM: Seemingly successful new companies struggle to turn a healthy profit. Established firms get disrupted by upstarts. Companies that excel at serving their markets can’t adapt when customers’ tastes shift. THE ROOT CAUSE: All too often, business leaders focus on one element of strategy—such as identifying a golden opportunity presented by new technologies or building advantages that competitors lack. But they either ignore the other components of strategy or don’t recognize the components’ interdependencies. THE SOLUTION: Take a holistic approach and craft a strategy that encompasses carefully coordinated choices about the business model, the competitive position, implementation processes that constantly adapt to the changing environment, and the capabilities needed to win in the long term.