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Hegel and Brown, The Only Sustainable Edge

Posted on: September 15, 2009

By dynamic specialization, we mean the commitment to eliminate resource and activities that no longer differentiate the firm and to concentrate on accelerating growth from the capabilities that truly distinguish the firm in the marketplace. Consequently, firms cannot simply focus on differentiation but must also shed nondifferentiating activities. (p. 54)

By tightly bundling [many] businesses together, companies inevitably sub-optimze the performance of one or more of the businesses. The companies therefore become vulnerable to more-focused competitors that have chosen to focus tightly on one of these business types… More diversified companies that choose to retain these activities within their enterprise will face increasingly severe competition from companies that access these world-class capabilities from focused providers. (p. 55)

“Unbundling of corporations” (p. 60)


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