Executives love to believe, that they can freely decide, what kind of strategy is right for their company and which innovations will be successful on the market. If the strategy later on fails, or if an innovation doesn’t work out, poor implementation will be made responsible.

Source: Harvard Business Manager http://tinyurl.com/yyfnjkg

Key points:

  • Localization: it is often only from the outside view, that one will be able to discriminate, whether or not a company has chosen the right path
  • Disadvantages: resistance to change may become a problem; focusing just on one’s core competencies can lead to chaos
  • Advantage: stability and holding on to one’s roots, may be desirable in brand management, for example.