How do we know when we have crossed the fuzzy line from strategic fit to strategic stretch?
Strategic Fit is the extent to which a firm is trying to match its resources and competencies with the needs of the external environment. It is an attempt to identify the opportunities in the environment in which the organization works and then tailoring the strategy of the organization to leverage these opportunities. Strategic Stretch, on the other hand, is the process of innovation and development involved in finding new opportunities and creating competitive advantage from an organization’s resources and competencies by elevating them. The stretch happens when there is a gap between the capability of the available resources and the strategic intent. So, the indication of crossing the said fuzzy line is that when the resources are to be leveraged in some way to realize the strategic intent given the opportunity, we will say that it is not a fit but a stretch. The leveraging of resources can happen in many forms including concentrating them strategically, accumulating them efficiently, complementing one resource with the other, conserving them, recovering them from the market place in the least possible time and so on.
How do we know when we have crossed the fuzzy line from strategic fit to strategic...
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