Microsoft versus Google: An Illustration of the Most Common Strategic Mistake

Everyday, we read articles on the business battle between Google and Microsoft (click here for today's installment). This battle illustrates the elements of the most common strategic mistake: the waste of resources on attacking opponents (3.1.3 Conflict Cost) instead of working on pursuing opportunities (3.2 Opportunity Creation). It also illustrates another problem with size (3.4 Dis-Economies of Scale). When organizations get as large as Google and Microsoft, the only territories that seem large enough to support meaningful expansion are areas already dominated by another competitor.