The paper “ Crafting Winning Strategies in Dynamic Environments" is an impressive example of an essay on business. In the present day competitive world, the formulation of an appropriate strategy is the key to success. All industries are competitive with numerous players jostling with each other for higher market share. The dynamic environment keeps every organization on its toes. Companies keep a close eye on the changes in the micro and macro environment. Most successful companies are quick to respond to a competitor’ s actions and open to change. In this backdrop, it is difficult for a budding entrepreneur to enter an industry without inviting the wrath of the existing incumbents.
The frontal attack may thus prove to be expensive and counterproductive. It is therefore important to understand and appreciate the importance of an indirect assault wherein a company adopts a strategy that existing incumbents cannot respond to or choose to ignore (Bryce and Dyer). In the late 1990s, Virgin Cola decided to take on the mighty Coca-Cola and Pepsi head-on. Although the Virgin Group had the financial might to take on the cola behemoths, the Virgin Cola drink failed to make major headway.
On the contrary, Red Bull, a niche product, succeeded. The energy drink was initially placed in unconventional outlets like bars. Subsequently, the company gave high margins to retailers to attain shelf space. With a 65 percent market share of the U. S. energy drink market, Red Bull is in the pink of health. Collaboration too is a vital tool to succeed in a dynamic environment. Wal-Mart and Cott Corporation joined hands to take a pie of the lucrative carbonated soft drink industry.
The manufacturing capabilities of Cott and distribution prowess of Wal-Mart proved to be a winning combination (Bryce and Dyer). Once in, the new incumbent should make it harder for others to enter. JetBlue was a pioneer in offering satellite TV to its passengers. The airline bought LiveTV, the company that had developed this machinery and thereby thwarted other incumbents to use the same technology. Modifying the business model and reconfiguring the value chain makes it easier to enter an attractive industry. Companies have started outsourcing work to countries like India and China and have thus increased operational efficiencies (Bryce and Dyer).
Operational efficiency alone is not enough though. The essence of a good strategy is adopting and pursuing unique activities (Porter). If these activities can be easily replicated by competitors, the company achieves competitive parity only. It, therefore, transpires that competing in overcrowded industries may not lead to sustained superior performance. Entrepreneurs can adopt the Blue Ocean Strategy and create uncontested market spaces. The Blue Ocean Strategy creates and captures new demand and makes competition irrelevant. Since new demand is created, there is ample opportunity for growth and profitability (Kim and Mauborgne). Cirque du Soleil reinvented the circus and became a force to reckon with.
Operating in an unattractive industry where customers had shifted to alternatives like sporting events and video games as a means of entertainment, Cirque du Soleil created an uncontested market space and earned record profits. The company targeted adults and corporate clients who were willing to pay a premium for an unprecedented entertainment experience (Kim and Mauborgne). Finding new positions provides the entrepreneurial edge, a sine qua non for success. This edge can be achieved if the entrepreneur decides to limit the market offerings.
The entrepreneur cannot sell everything to everyone. One of the most important questions that an entrepreneur may have to answer is; ‘ What not to do? ’ (Porter).