Corporate strategy: The fatal bias: How cost competition harms performance
Jules GoddardLondon Business School
In this edited prizewinning article, Jules Goddard marshals impressive evidence to argue that the prevailing managerial bias towards cost efficiency is seriously harmful to corporate performance.
Overall cost leadership is not a viable strategy. This is the key discovery to have come out of the most extensive and thorough study of corporate performance ever conducted. Michael Raynor and Mumtaz Ahmed, both with Deloitte, examined the performance of more than 25,000 US companies over a 40-year period. Their aim was to identify companies with sustained levels...