Market focussed or Internal Resource & Capabilities focussed?

How should you design your organizational strategy? Should it be market focussed fulfilling the market need so that whenever market trend changes, your organization needs to keep the pace to stay ahead in the game. Strategy Management Gurus (Robert Grant is one of my favourite strategy management writer) says that in the fast paced innovative world, it is utterly impossible to chase the ever changing market therefore organization should focus on internal Resources & Capabilities mode of organization strategy design.

For instance Google’s (there are many such organization, Google is just an example) Resources & Capabilities allows it to designs products and services which is based purely on what it can offer create rather than getting driven by market. Be it their PageRank technology or AdSense or other services, all has been possible due to skills and capabilities. Therefore it is not necessary that an organization should always focus on market to drive the strategy. However market definitely provides lot of input to validate whether an organization’s capabilities are in sync with what market can absorb/adapt or is it very futuristic that capabilities won’t work at present market trends. That’s why we see innovations failing because those are ahead of their time.

So somewhere there is a fine thread balancing the Market approach and an organization’s resources & capabilities. When this balance gets distorted, we see young and innovative companies displacing the traditional company (Old and mature) in every decades of industrialization. Example: Microsoft giving tough competition to IBM or recent success of Google or may be partial disturbance in Yahoo’s organization strategy model.

Should an organization continue to add resource & capabilities but what is the milestone to do so?

What are the criteria to add such resource & capabilities?

Can an organization survive without remaining market focussed?

So what is the secret of managing strategy in an ever changing market place?

This is a short and thought provoking analysis; I will continue my thoughts on this aspect. Do share your thoughts.

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