Sources of Strategic Leverage: Concentration - Deepstash

Sources of Strategic Leverage: Concentration

  • Returns to concentration happen when focusing on fewer things generates large payoffs.
  • Threshold effects are in evidence when you need to hit a certain critical mass to see a return.
  • In advertising, companies often “pulse” ads so they overcome thresholds any one moment.
  • Dominating a very small market can be better than having some presence in many.
  • Most organizations can only focus on a few critical problems at a time.

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coab

Education officer at museum

Strategy is the craft of figuring out which purposes are both worth pursuing and capable of being accomplished

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