Strategic Frameworks Transient Competitive Advantage
Transient advantage is a business strategy that accepts that competitive advantages are often short lived. It focuses on innovation strategies that continually build new advantages.
Recognizing that traditional approaches to strategy and innovation can’t keep pace with the speed of the markets in which they compete, the Transient Competitive Advantage framework for strategy was developed. Transient advantage is a business strategy that accepts that competitive advantages are often short lived. It focuses on innovation strategies that continually build new advantages. Instead of building an advantage and defending it, a transient strategy focuses on the velocity of competitive advantage. When an organization does something better than everyone in their industry, every competitor begins to emulate that same strategy. Products are quickly copied and before long, the firm’s advantage has eroded. Precious few companies have maintained significant advantages for more than 5 years. Transient advantage is an approach that recognizes these challenges. It prioritizes continually building competitive advantages at high speed and low cost. It is a long term strategy that prioritizes regular innovation. There are 3 cornerstones of a transient advantage:
1. Innovation – Investment in fail fast innovation.
2. Corporate Culture – Transformation of corporate culture to be creative, inventive and aggressive.
3. Change Management – Reducing barriers to change.