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Case Study

Outpacing strategy and business trajectory management

By Paul Strebel

5 pages

January 2023

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Reference: IMD-7-2435

Outpacing strategy, first described by IMD professors Xavier Gilbert and Paul Strebel, is based on the ability to shift strategic innovation between perceived product value (the quality of the value proposition) and delivered cost (the efficiency of the value delivery system). First movers with an outpacing strategy gain a competitive advantage because developing the required new capabilities takes time and effort. Outpacing requires selecting initiatives with the best combination of value creating potential and execution risk and sequencing them in accordance with several practice-based guidelines. Successful implementation demands organizational change management that takes into account the forces of change in the environment and the forces of resistance in the business. There are three classic implementation paths – two that succeed and one that repeatedly fails.

Learning Objective

Contrasting outpacing with generic and Blue Ocean strategy
The value and difficulty of competing with both product rejuvenation and cost efficiency
How to select, sequence and integrate outpacing initiatives
How to outpace in environments evolving gradually or rapidly

Keywords

Disruption, Technological Leadership, Efficiency

Type

Published Sources

Available Languages

English

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