Industry and Market Dynamics

Grant’s (1995) introduction of the notion of “survival” into critical success factors raised an interesting and important distinction between necessity and advantage. Arguably a lot of what are often identified as key success factors are essentially competitive necessities. Unless they are addressed an organization will be unable to compete successfully in a selected market or market segment. While they may appear to be sources of advantage to outsiders, in fact they are more akin to a simple market entry status than true sources of significant advantage over otherwise evenly matched competitors. Arguably, all the key success factors identified by Leidecker and Bruno (1984) and many identified by Grant (1995) above can be seen as competitive necessities. Much of the work in this area has focused on the divination of critical success factors in particular industries. It is suggested however that what is required is some broader view of what constitutes a key success factor in a digital network economy context. Just as Rumelt (1987) suggested that it is underlying competencies, rather than their current manifestation in the latest product that is important. It is proposed that survival be replaced with sustainable future competitiveness; it is also proposed that a broader, macro, framework is becoming necessary to structure the identification of capability factors rather than simply a list of the latest industry or marketplace drivers. It is suggested that such a framework revolves around six generic focused characteristics of business environmental dynamics; knowledge management, technology management, process management, relationship management, regulatory compliance and managing geopolitical events. But much has changed. Figure 2.1 is a reference point for Industry and Market Dynamics activities in the period 2000.