BREAKING INDUSTRY RULES

Myth: Industry analysis is key to strategy
The rule breakers know that it is now increasingly difficult to define precisely
where an industry begins and ends. This is certainly true for financial
services, telecommunications, health care, and a variety of other industries.
The question, "What industry are you in?" is becoming harder and harder
to answer.

Myth: You should focus on your direct competitors
In the past it was relatively easy to tell who was a competitor and who was
not. Today it is harder to distinguish competitors from collaborators from
suppliers from buyers. The rule breakers understand that rivalry ain't as
simple as it used to be. For many companies, it's getting harder and harder
to tell the good guys from the bad guys.

Myth: In strategy, it's you against the world
Most managers think they can pretty much control the direction of their
business. Yet today's smart leaders understand it is difficult to know just
where the boundaries of the firm begin and end—temporary workers, outsourcing,
and long-term supply relationships are now the norm. A firm may
"own" only a small portion of the relevant value chain. The sort of radical
strategy that leads to true innovation becomes substantially more complex
in a world where the firm doesn't directly control many of these assets critical
to its success.