Business

Competing for the Future: 8 key ideas

by Gary Hamel & C. K. Prahalad

The core ideas of Competing for the Future, each in under a minute, written in our own words. Want the full depth? Get the book.

1. IDEA 1 OF 8

   Companies must compete for the future

   Hamel and Prahalad argue that companies spend too much effort cutting costs and restructuring for today's markets.

   Instead, they should imagine tomorrow's industries and position themselves to lead them. Winning tomorrow needs thinking about it today.

2. IDEA 2 OF 8

   Core competences are key

   The authors describe core competences, the collective skills and knowledge that let a company create many products.

   Companies should build and use them. In the authors' view, a company known for one deep skill can use it in many different products, and not just in one.

3. IDEA 3 OF 8

   Strategic intent sets direction

   The authors describe strategic intent, an ambitious long-term goal that inspires an organisation.

   It guides decisions. In the authors' view, a goal that people believe in gives them a reason to work together, and it points the whole company in one direction.

4. IDEA 4 OF 8

   Foresight imagines new markets

   The authors argue that leaders need industry foresight, imagining how markets will change.

   This helps companies prepare. In the authors' view, a company that thinks about where customers and technology may go is better prepared than one that only reacts.

5. IDEA 5 OF 8

   Stretch beyond resources

   The authors describe stretch: setting goals beyond current resources.

   Ambition drives creativity. In the authors' view, a company with a goal bigger than its means is pushed to think of clever ways to reach it.

6. IDEA 6 OF 8

   Leverage resources wisely

   The authors explain leverage, using resources efficiently to achieve stretch goals.

   Smart use matters more than size. In the authors' view, a smaller company that uses what it has cleverly can compete with a bigger one that wastes its resources.

7. IDEA 7 OF 8

   Restructuring is not enough

   The authors warn that downsizing and restructuring cannot create future growth.

   Companies must invest in new opportunities. In the authors' view, cutting costs may help for a while, but it does not build the new products and markets a company needs later.

8. IDEA 8 OF 8

   Create new industries

   The authors encourage companies to shape new industries rather than follow.

   Leaders create markets. In the authors' view, a company that creates a market is not forced to copy others, and it sets the pace for rivals.