Successful strategy: Stargazing or self-examination?

Paul Verdin and Peter Williamson construct links between 'inward-looking' strategies by companies -- which are governed by their existing assets, capabilities and core competencies -- and 'outward-looking' strategies which emphasise a more traditional market-competitor analysis. Two aphorisms for managers emerge -- 'understand exactly which competences can offer competitive advantage', and 'start from the market in deciding how to use your core competences'. A company which succeeds in forging these links will be able to come up with a synthetic strategy which uses its internal resources in a way the market will continue to reward. This strategy will bring real competitive advantage.