One important thing in the process of strategy formulation is considering the capability and maturity level of supply chain.

An example of this is the recent challenge of the big 3 auto makers in the U.S. Detroit's Big Three expect to battle for customers looking for hybrid vehicles.

To meet the demand, they may have to look beyond their US suppliers for parts and innovation.

But the verdict is still out on the readiness of Detroit's traditional supply base. It includes an array of companies struggling to stay Alive in the face of high labor costs and price cuts from its customers.

You can read the full article here at Detroit Free Press article named "Autoparts supply chain falls behind in hybrid race"

The important thing is to think about how to overcome this trade off between supply chain constraints and the decision to focus on new more profitable markets.