Transient Advantage in a Business Strategy

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Transient Advantage in a Business Strategy

Table of Contents

Introduction
Discussion
Conclusion
Reference

Introduction

Transient advantage refers to a business strategy that believes that competitive advantages are often short-lived and encourages companies to find new strategic initiatives. Competitive advantage is an attribute that puts a company in a favorable business position enabling it to outperform its competitors. During operations, many businesses utilize their competitive advantages; however, they are temporary, and the business starts creating new opportunities. However, the market is constantly changing, and so is the customers preference. If the taste and liking change, then the advantages the company was focused on will no longer be helpful. Relying only on its competitive advantage may cause problems in the future for companies, thus the need for incorporating the transient advantage as a business strategy.

Discussion

Even though competitive advantage strategies have been used in the past, it is clear that they are only sustainable for a short period of time. Therefore, businesses must shift their operations to newer methods and strategies. According to McGrath (2013), executives rely on deeply ingrained structures and systems to extract maximum value from competitive advantages that are often outdated and need to be updated in a fast-moving competitive environment. This means that executives must capture opportunities quickly, exploit them decisively, and then move on once they are exhausted.

Companies must learn to launch new strategic initiatives and create a portfolio of advantages that can be built quickly and abandoned rapidly. McGrath (2013) argues that transient advantage is a business structure that allows a business to succeed and prosper. This happens as the business is able to exploit its advantages, exploit and maximize them, and allow it to thrive even when the advantages end, as they will still be in operation using other strategies. Companies need to constantly innovate and create a new business advantage before the previous one fades away. For example, even though the traditional network television model was successful, they strived to create more opportunities by providing the ability to record programs and skip the commercials (McGrath, 2013). This meant that even when other networks invaded the market, they were still ahead and had a competitive advantage over them.

The sources of the competitive advantage over the rivals can be better resources, differentiated product ideas, more variety, a larger customer base, and many more factors. Organizations can expand their competitive advantages by focusing on innovations that develop transient advantages. This can be done by thinking about arenas and not industries, setting broad themes, and then letting people experiment and give their reviews. Additionally, adopting metrics that support entrepreneurial growth, focusing on experiences and solutions to problems, and building strong relationships and networks, create new strategic initiatives that benefit the business long-term. Furthermore, getting systematic about early-stage innovation and avoiding brutal restructuring by learning healthy disengagement becomes an added advantage.

Conclusion

In conclusion, it is paramount that companies shift their operational structures to encourage growth and innovation, thus reducing dependency on existing competitive advantages. The constant growth and changes in the market create gaps and new opportunities for companies to create transient advantages. This ensures that the organization maintains a competitive advantage against its competitors even in the future. If companies shift and embrace transient advantage, then this means that the economy will also change. Therefore, employees should also be prepared to change and adapt to the new economic structure. This involves preparing for the loss of jobs and also being ready to learn new skills.

Reference

McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.

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