Adaptive Advantage

Companies can sharpen their quest for a sustainable competitive edge by pursuing adaptive advantage—a strategy that acknowledges the unpredictability of today’s environment and unlocks the dynamic qualities of competition. With adaptive advantage, approaches to new problems can continually emerge.

Traditional strategy assumes that there is durable advantage in well-defined and largely stable industries comprising a few relatively homogenous competitors.

But increased turbulence in some of today’s business environments has invalidated classical business strategy. Leadership is less durable today, and industry boundaries are blurring. With key variables constantly shifting, it is harder than ever for companies to forecast even their own success.

It is time to supplement traditional, static strategy with a dynamic, adaptive strategy. The BCG Henderson Institute knows how to develop a malleable strategy and achieve adaptive advantage—a position that promises long-term success.

Signal Advantage

  • Capturing the right information and data
  • Extracting relevant signals and acting upon them rapidly
  • Leveraging those signal to reinvent business models and reshape the information landscape of a given industry

Learn more about signal advantage

Experimentation Advantage

  • Generating, testing, and replicating a large number of innovative ideas quickly
  • Innovating at a lower cost and with less risk

Learn more about experimentation advantage

Organization Advantage

  • Changing the design of the organization to enable modularity
  • Encouraging a free flow of knowledge and power
  • Discouraging principles that constrain activities
  • Establishing a willingness to take risks and accept failures
  • Leading through context setting

Learn more about organization advantage

Systems Advantage

  • Orchestrating a dynamic, adaptive network of players with diverse assets and capabilities toward mutual goals
  • Creating value for all players

Learn more about systems advantage

Ecosocial Advantage

  • Generating value and achieving a competitive advantage by sustainably aligning the business model with a broader social and ecological context

Learn more about ecosocial advantage