Strategic Intent

They begin with a goal that exceeds the company's present grasp and existing resources: "Beat Xerox"; "encircle Caterpillar." Then they rally the organization to close the gap by setting challenges that focus employees' efforts in the near to medium term: "Build a personal copier to sell for $1,000"; "cut product development timeby 75%."

Year after year, they emphasize competitive innovation building a portfolio of competitive advantages; searching markets for "loosebricks" that rivals have left under defended; changing the terms of competitive engagement to avoid playing by the leader's rules. The result is a global leadership position and an approach to competition that has reduced larger, stronger Western rivals to playing an endless game of catch-up.