Summary
1. In deciding how to play the game, a firm must not only identify what activities it needs to perform but also combine these activities into a reinforcing system that creates the requisite fit between what the environment needs and what the company does.
2. At the same time, the company must never forget that the environment outside the firm is in a constant state of flux. This does not mean that the firm must not strive to achieve fit! It must create this fit, but it must also remain flexible enough to respond to the ever-changing environment. Hence, the firm must aim to achieve dynamic fit with its environment.
3. A firm can use a variety of tactics to achieve dynamic fit with its environment. For example, it may:

· build internal variety that will allow it to develop competencies even before it even knows which competencies will be needed.

· institutionalize continual innovation.

· develop a culture that welcomes change accomplishing this by creating uneven, episodic crises rather than actions aimed at continuous improvement.

· develop a strategic monitoring system that warns of inflexion points in its future well in advance.

· prevent core competencies from becoming core rigidities.