Here’s how you can learn about core competencies from the movie ‘Pele: Birth of a Legend’

The lure of growth through diversification is quite tempting for many organizations!

Out of the two options of organic growth and inorganic growth, many organizations go for inorganic growth including mergers and acquisitions or alliances for diversification.

However, as various studies show, a majority of the diversifications are not successful.

According to a recent Harvard Business Review article, the failure rate for mergers and acquisitions (M&A) is between 70% and 90%! Also, research shows that majority of alliances, almost two-third, result in failure.

Don’t get me wrong here. I am not suggesting one cannot go to newer businesses or diversification or mergers and acquisitions (M&A) or alliances. One can go, but only after knowing, do one has the core competencies required to be successful in that newer business or can develop or acquire the newer competencies required.

The strategic humour story “Core Competencies: Learning from ‘Pele: Birth of a Legend’ Movie!” highlights that one need to be careful about mindless diversifications.

Here, have a look!



(The article is authored by Prof. Rajesh K. Pillania is judged Best Faculty for Strategic Management in India by ASSOCHAM & Education Post and is ranked jointly #1 for research productivity among management professors in India. He is author of Strategic Humour book, a stand-up comedian on strategy and is faculty of Strategy with MDI, Gurgaon.)