Organizational success crucially depends on having a superior strategy and effectively implementing it. Companies that outperform their rivals typically have a better grasp of what customers value, who their competitors are, and how they can create an enduring competitive advantage.

Successful strategies re flect a solid grasp of relevant forces in the external and competitive environment, a clear strategic intent, and a deep understanding of a company's core competencies and assets. Generic strategies rarely propel a firm to a leadership position. Knowing where to go and finding...