Stay ahead of the game by tailoring your competitive strategy to prepare for both predictable and volatile environments — even if your industry is as steady as clockwork.
Boston Consulting Group senior partner and managing director Martin Reeves asks in his HBR Blog Network post if your company has a competitive strategy in place to shape your environment. Particularly for companies in “highly volatile environments,” having an effective competitive strategy is essential to survival. While “fully three-quarters of the executives [Reeves] surveyed at 120 companies around the world in 10 major industry sectors were well aware of the need to match their strategies…to the specific conditions of their competitive environment,” Reeves writes, “far too many were employing” them.
One major problem Reeves cites in shaping your competitive strategy is that “you can’t begin to tailor your strategy to the conditions of your industry if you don’t perceive them correctly.” Reeves recommends that you “consider not only strategies suited to predictable environments you can control but those geared to predictable environments that you can’t influence.” From there, you can capitalize on the possibilities of even unpredictable environments and remain competitive always.