OWP 2022: Leading For the Future

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NONMARKET STRATEGY: ALIGNING EXTERNAL STAKEHOLDERS FOR COMPETITIVE ADVANTAGE

In an increasingly complex and volatile world, executives can create value and competitive advantage by engaging strategically with diverse political and social stakeholders.

We live in a complicated world with a myriad forces pushing, pulling – and sometimes clashing – for dominance. In this setting, mastering markets is no longer enough. In order to excel, especially globally, firms must also understand the social, political, regulatory, environmental, and cultural context in which they operate – and they must be prepared to proactively shape it.

that boost their company’s competitive advantage by enabling, complementing, reinforcing, or protecting their market strategies.

CHANGING THE GAME Today, a plethora of actors seek to influence companies because they are creators of value. As a result, business leaders need to strategically engage with a broad range of ‘nonmarket’ stakeholders – governments, regulators, non governmental organizations, activists, citizens, and the media. They also need to craft nonmarket strategies

DAVID BACH Professor of Strategy and Political Economy and Dean of Innovation and Programs

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