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

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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!
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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.

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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.

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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.)