Escaping the Red Queen Effect in Competitive Strategy:

University of Stellenbosch
European Management Journal 02/2005; 23(1):37-49. DOI: 10.1016/j.emj.2004.12.008
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Most business models are based on traditional ways of strategy formulation and implementation, leading to incremental and not disruptive change in the nature of business and industry practices. The ‘red queen effect’ refers to the red queen’s advice in Lewis Carroll’s Through the Looking Glass in which she says, in order to stay in a (competitive) place you have to run very hard, whereas to get anywhere you have to run even harder. In today’s knowledge and mobile environments we know that businesses cannot survive by just running harder, but rather by running differently and ‘smarter’ than competitors. The article suggests a sense-testing tool for managers to enable disruptive innovation of business models through corporate examples and case study evidence.

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Available from: Sven C. Voelpel, Jul 19, 2015
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    • "Key components of the business model include the company's network of relationships, operations embodied in the company's business processes and resource base, and the finance and accounting concepts of the company. " • Material aspects: strategy & structure, network, operations, finance & accounting • Belief system: reputational rankings, industry recipe, boundary beliefs, products Voelpel et al. (2005, pp.261-262) " The particular business concept (or way of doing business) as reflected by the business's core value proposition(s) for customers; its configurated value network(s) to provide that value, consisting of own strategic capabilities as well as other (e.g.outsourced/allianced) value networks and capabilities; and its leadership and governance enabling capabilities to continually sustain and reinvent reinvent itself and satisfy the multiple objectives of its various stakeholders (including shareholders). " • Customer value propositions • Value network configuration • Sustainable returns for stakeholders Chesbrough (2007, p.12) " The business model performs two important functions: value creation and value capture. "
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    • "In fact, earlier authors used both terms as synonyms without bothering to clarify the distinction between them. Business model is described as the " way of doing business " or its " business concept " (Hamel, 2002; Voelpel et al., 2005). Others would argue the business concept precedes the business model without giving a clear explanation: " .the "
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