4min snip

Good Strategy, Bad Strategy | Richard Rumelt

Lenny's Podcast: Product | Growth | Career

notes

NOTE

Understanding Sources of Power in Competitive Strategy

Power in a competitive situation is about exploiting asymmetry for advantage. It can come from being first, having a certain reputation, or having relationships. IBM's source of power was its customer base, but that changed when computing moved to the cloud. Power can be inherited and become a disadvantage. It can also come from inventions or identifying a particular customer base. Companies must utilize different sources of advantage to compete and survive.

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Transcript

Episode notes

Richard Rumelt is a legend in the world of strategy. He’s the author of Good Strategy/Bad Strategy and The Crux: How Leaders Become Strategists, both of which are often recommended by guests on this podcast. From his early days teaching in Iran at a Harvard-sponsored business school to teaching at Harvard Business School itself to over four decades teaching at UCLA’s Anderson School of Management, Richard’s impact resonates globally. His strategic insights are sought after by major corporations including Microsoft, Shell, Apple, AT&T, Intel, and Commonwealth Bank and by governmental organizations such as the U.S. Army Special Operations Command. In this episode, we discuss:

• The essential components of a good strategy

• The importance of coherence in strategy

• Common pitfalls that create a bad strategy

• How “power” plays into strategy, and common sources of power

• The value of knowing history when developing effective strategies

• Why a strategy should simply be called an “action agenda”

• The need for one decider in an organization

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