ABSTRACT

The strategy triangles can be adapted to highlight impending risks with a very simple overlay by drawing three concentric circles on the strategy triangles diagram with the center at the origin and circumscribing each of the three strategy triangles. It visually depicts the firm under an encirclement attack. One of the most often committed blunders that precipitates failure in a firm’s evaluation of its strengths, weaknesses, opportunities and threats is that the threats are underestimated while the strengths, overestimated. Instead of phasing out anachronous products and business models, their current cash cows, they start investing into them hastening their advance to a certain death. The impact could lie anywhere between a sustained stall to a complete shutdown and business history is replete with such examples. The English language proverb that best mirrors this state is “too-little-too-late.” The combined effect of this state with overestimated strengths and underestimated threats can be disastrous and is a strategy inhibitor.