And a much more positive kind of competition could emerge if managers thought about strategy in the right way. Technology changes, strategy doesn't. The underlying principles of strategy are enduring, regardless of technology or the pace of change. Consider the Internet. Whether you're on the Net or not, your profitability is still determined by the structure of your industry.
Sound strategy starts with having the right goal.
And I argue that the only goal that can support a sound strategy is superior profitability. If you don't start with that goal and seek it pretty directly, you will quickly be led to actions that will undermine strategy. Finally, strategy must have continuity. It can't be constantly reinvented. Strategy is about the basic value you're trying to deliver to customers, and about which customers you're trying to serve.