Corporate Strategy: The Evolution - Deepstash
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Corporate Strategy: The Evolution

Corporate Strategy: The Evolution

Strategy is a competitive game, which always evolves in response to competition. But the magnitude of the changes in the technological, social, and natural environment are such that corporate strategy will need to be qualitatively reinvented again for new circumstances.

Six factors are driving these changes: 1) dynamism, 2) uncertainty, 3) contingency, 4) connectedness, 5) contextuality, and 6) cognition.

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The Right Approach

The Right Approach

On average the business environment has become more dynamic and uncertain.

Corporate strategy must cultivate capabilities to apply and balance these diverse frameworks/strategies, picking the right approach to strategy to each business and creating a common platform for operationalizing the...

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4 reads

Contextuality

Contextuality

Corporations now need to demonstrate purpose, social contribution, trustworthiness, and ecological responsibility. This involves not only matters of intent, measurement, compliance and communication, but also increasingly issues of competitive advantage. A corporate strategy must now create credi...

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5 reads

Contingency

Contingency

Depending on the uncertainty, malleability or harshness of each, corporations have to adopt very different approaches to strategy-making, each with its distinct processes and tools.

These approaches include: classical strategy (in which firms compete on scale and position)...

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6 reads

Connectedness

Connectedness

The list of the world’s largest companies today is dominated by digital ecosystem orchestrators like Amazon, which create an offering in collaboration with hundreds or thousands of other enterprise...

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4 reads

Dynamism In The Market

Dynamism In The Market

Competitive advantages do not last as long as they used to, as reflected in the acceleration of the competitive fade rate, which measures how quickly market and operational returns regress to the mean, ...

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8 reads

Uncertainty

Uncertainty

As a product of the technology revolution and other factors, business plans have become less predictable. This is expected to continue with further waves of technological disruption like AI washing through the corporate economy. 

The consequence for corporate strategy is an entirely new log...

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5 reads

The Three Consequences Of Dynami

The Three Consequences Of Dynami

  • Active management of the business portfolio is again important: companies need to ensure that their business portfolios are continually rebalanced in order to maintain growth expectations.
  • New businesses need to be seeded at a higher rate, requiring large companies to behave more li...

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7 reads

Cognition

Cognition

Until recently business strategy was largely about human analysis and decision making. But machine learning has now reached a level of sophistication that rivals or exceeds human expert capabilities for an increasing scope of tasks. This has profound implications for corporate strategy. To begin ...

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5 reads

The Bottom Line

The Bottom Line

Strategy is a competitive game, which always evolves in response to competition. But the magnitude of the changes in the technological, social, and natural environment are such that corporate strategy will need to be qualitatively reinvented again for new circumstances.

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6 reads

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