Strategy Driven

MARCH 18, 2011

These choices historically conferred advantage – first-mover, scale – but asset-based scale advantages have diminished in recent years, thanks to technology, cheap information, and outsourcing. Assets are important, but they are, increasingly, table stakes in most competitive industries; everyone in the game has them.

Resources 51

Resources Industry System Strategy 51

Harvard Business Review

JANUARY 3, 2011

Focus on capabilities rather than just fixed assets: Fixed assets, including brands, are more difficult to leverage across diverse businesses and tend to expire, become obsolete, or give way to related services. But we believe a capabilities-driven strategy is the most direct, efficient, and effective way to get there.

Strategy 16

Strategy Fixed Assets Competitive Advantage Long-term 16

Harvard Business Review

JANUARY 29, 2018

For the latter, we measured incumbents’ operational efficiency, commitment to innovation, and defenses against attack. In the durability state, we found efficient, mature industries — think alcoholic beverages or tires and rubber. There are exceptions, however, such as Lowe’s, the home-improvement retailer.

Industry 8

Industry Fixed Assets Retail Market Penetration 8

Harvard Business Review

DECEMBER 9, 2015

Some find evidence of a clear improvement of total factor productivity since market-oriented reforms began in 1979, estimating that the increase in TFP contributed about 40% to GDP growth, roughly the same as that contributed by fixed asset investment. There was also a slowdown in TFP after the mid 1990s. by the end of that period.

GDP 8

GDP Human Capital Fixed Assets Efficiency 8