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Slide 1: Lessons from the Red Queen Chapter 10: The contest for survival
Slide 2: Red Queen Competition “an ongoing process wherein competition triggers adaptive learning among organizations, making them more viable so that they compete more strongly, which in turn triggers adaptive learning in the rivals.”
Slide 3: Strategy   Creation and exercise of choice based on a preference for a particular future state or condition. Strategy is about how (the way) leadership will use the power (the means or resources) available to it to exercise control over sets of circumstances and geographic locations to achieve specified objectives (the ends, goals or desired outcome).
Slide 4: Objectives SMART Specific Measurable Achievable Realistic Time-stamped
Slide 5: Three Objectives of Strategy 1. 2. 3. Create value (why) Avert imitation (how) Determine size and scope ambitions (what)
Slide 6: Competitive Advantage The ability of a business to derive abnormal profits in a competitive industry based on a value-creating strategy not simultaneously implemented by an current or future competitor.
Slide 7: Resource-based view (RBV) A company is a collection of tangible and intangible resources (assets and capabilities)       Physical resources Relational resources Organizational resources Financial resources Intellectual and human resources Technological resources
Slide 8: Sustainable Competitive Advantage If Resources are (VRINE)  Valuable (contributing to SCA)  Rare (few others possess this)  Inimitable (difficult and costly to copy)  Exploitable (organized for exploitation) Then Competitive Advantage is Sustainable
Slide 9: Comparison of Strategies for Creating an SCA Traditional Strategies          Entrepreneurial Ways         Continued innovation Lowest cost producer Best made product Operational excellent Excellence customer service Enhanced performance More convenient locations Reliable/Durable product Product leadership Relentless innovation Flexibility/adaptability/speed Revolution/renewal and resilience Market ownership Customer value co-creation Entrep. mindset and action Opportunity obsession Foresight and topsight
Slide 10: Strategic Entrepreneurship Entrepreneurial actions with a strategic perspective and strategic action with an entrepreneurial mindset such that it “is the integration of entrepreneurial (i.e., opportunity-seeking behavior) and strategic (i.e., advantage-seeking) perspectives in developing and taking actions designed to create wealth.
Slide 11: Escaping the Red Queen Effect: Five Lessons 1. 2. 3. 4. 5. Every Battle is Won Before it is Ever Fought Step backward to go forward Ready! Fire! Aim! It takes two to pass one Don’t play hardball- throw a curveball
Slide 12: 1. Every Battle is Won Before it is Ever Fought (Unconventional Tactics) Know yourself and your enemy so you are able to surprise your opponent and attack when and where it is least expected using unorthodox methods in surgical strikes.
Slide 13: 2. Step Backward to Go Forward (Speed) 1. 2. 3. Rapid movement: use speed and agility Balance: “Push when pulled” Leverage: understand your opponent’s vulnerabilities and then force your opponent into a position where the choice is between losing valuable resources and responding.
Slide 14: 3. Ready! Fire! Aim! (Improvisation)    Entrepreneurial Enactment- rational, analytical, causal reasoning is combined with effectual action. Effectual action describes a situation in which known means are used to create innovative alternatives. Strategies emerging from actions rather than plans.
Slide 15: Three Strategic Decision-Making Modes  Thinking first (Problem is known; way is known)  Define problem, diagnose, design options, decide Preparation, incubation, enlightenment, validation Trial and error/  Seeing first (Problem is known)   Acting first (Problem is unknown; way is unknown 
Slide 16: Enlightened Experimentation    Enactment (Try out new behaviors) Selection (Retrospectively choose behavior) Retention (Store behaviors that seem desirable)
Slide 17: 4. It takes two to pass one (compete by cooperating)  Co-opetition
Slide 18: 5. Don’t play hardball – throw a curveball  A revolutionary business model is more likely source of sustainable competitive advantage.
Slide 19: Blue Ocean Strategy   Red oceans (bloody competition for the same group of customers using comparable value propositions, low cost or differentiation built around incremental innovation) Blue oceans (uncharted territory filled with untapped market potential)
Slide 20: Blue Ocean Strategy 2. Reduce What factors should be reduced well below the industry standard? 1. Eliminate What factors that the industry has taken for granted should be eliminated? Creating New Markets 4. Create/Add What factors that the industry has never offered should be created or added? 3. Raise What factors should be raised well above the industry standard? Source: Kim and Mauborgne, Blue Ocean Strategy, 2006
Slide 21: Value Innovation  Integrates differentiation and low-cost strategies to create blue oceans that offer quantum-leap increases in value built around buyer utility, price, cost positions and adoption.
Slide 22: Summary     Today’s strategy game is an emergent process that is being redefined as the game is played. Learn through trial and error Improvisation, insight, intuition and imagination are key skills Requires an entrepreneurial mindset that constantly challenges and rethinks the value proposition and continually questions where people and other resources fit in a picture of the company’s future.