Every company wants to grasp the holy grail of competing: to disrupt so thoroughly you make your competition irrelevant. But a disruptive competitive strategy doesn’t last forever. There is a disruptive attitude, though, that might.

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Disruption and the blue ocean are the holy grails of competing. With them, you don’t even have to compete.

Blue ocean is pacific. It’s gentle; it doesn’t bother anyone; it’s just something wonderful and new. Disruption is the bad boy of holy grails. It sees the party going on at your house and lures everyone away to the party at its house.

Disruption is the ultimate buzzword for raising capital. Starting Walmart merely makes you rich. Starting Google makes you rich and cool.

But we are strategists and we demand more than generalities and party metaphors. Is disruption really the holy grail of competing? I’ll conclude that it is, but not of the we-don’t-even-have-to-compete variety. (I’m going to meander a bit on the way.)

In a sense, all extant companies were disruptive at least once because they lured customers to attend the party at their houses. But that’s about as useful as remarking that all extant humans breathe air. “Disruptive” must mean more than breathing. What more it means is a bit unclear.

Walmart is number one on 2014 Fortune 500 list. Its revenues top the combined budgets of California, New York, and Ohio. They top the annual budget of the Netherlands.

Is Walmart disruptive?

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“The Sound of Competing” Episode 3: Culture Doesn’t Replace Strategy


Every corporation has a corporate culture. Is yours a competitive advantage?

Many pundits, especially those from the “soft” social sciences (psychology, sociology, anthropology), make a case that corporate culture is a critically important source of competitive advantage. They call for open and empowering cultures that they say uniquely encourage innovation and success. Yet, just as attitude can take you only so far in soccer if your stars are injured, culture can take you only so far within the competitive economics of the industry. Companies creaking with old-fashioned management styles have succeeded over decades. Startups wielding the most open, progressive, and innovative cultures have failed overnight.

The one aspect of culture which is critical is how information flows inside the organization. The reason: whether your management is an authoritarian, cigar-chomping Lord High Everything or an enlightened, organic Collective of Nice Dedicated Associates, without information you wear a blindfold during the big game.

In the podcast you’ll hear about the category of information that’s the most crucial to decision makers, why it is scarce, and what it takes to make it flow.

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“The Sound of Competing” is a new podcast from Competing.com. It’s conversations from Ben and Mark, plus the occasional reckless guest. It’s remarkable. It mixes serious concepts with humor. It’s edgy without sacrificing critical thinking. It’s the antidote to the silly and shallow. Also, there are titanic battles between good and evil. A ping pong match between two strategy giants resulting in commentary smart enough to listen to.

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A solid business strategy doesn’t have to be groundbreaking, it just has to provide value. Some companies even gained a competitive advantage from their own non-innovative business strategies.
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Harvard Business School Professor Clayton Christensen published The Innovator’s Dilemma and laypeople and pundits fell in love. They fell in love with Prof. Christensen’s buzzword: disruptive. You, too, may cast a romantic smile toward your dictionary right about now.

Companies with modest revenues are said to be worth IPO billions due to their disruptive business models. The most-sought-after disruptions are those hailed as truly new ways of doing things. Yet the frantic race to the next disruptive technology or innovation brushes off old-fashioned business models that eschew “innovation” for the sake of innovation (see also my article The Strategic Mind At Work). Those drab old business models merely make money.

Business models, whatever the term means to you, don’t have to be about the biggest disruption or the latest technology. Old-fashioned strategy can triumph without disrupting anyone. Remember the joke about investing millions in space pens that can write without gravity, when a pencil would suffice? No joke here. Let the pseudo-savvy investor crowd rush to pour billions into the latest techno-gamble. You quietly find real value.

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