The Future of Competition

Chapter Eleven

STRATEGY AS DISCOVERY

ALTHOUGH the co-creation of value paradigm implies a different view of strategy, we have so far chosen not to focus on the strategy-making process and the meaning of strategy. However, now that we have discussed the criticality of line managers and the need to build a manager-centric environment for rapid knowledge creation, we can outline the new strategy framework.

The traditional view of strategy is that firms can shape industry evolution and customer expectations more or less autonomously, subject only to the actions of competitors. The new paradigm recognizes that industry evolution is influenced by the actions of consumers and consumer communities as well. As we saw in the Lego, Napster, and other examples, ...