HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeOutpacing strategy and business trajectory managementback to Strategy

Case Study

Outpacing strategy and business trajectory management

By Paul Strebel

5 pages

January 2023

Order this case study

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

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Se il manager sceglie di centralizzare la catena decisionale

September 2024 marks a turning point in corporate management and a drama in the management world, which began with an essay by Paul Graham, patron of Silicon Valley's leading startup incubator, Y Combinator.Graham coins a new paradigm, the founder...

Family Business Team Dynamics Organizational Behavior Leadership

By Alfredo De Massis and Paolo Lacchè

in Il Sole 24 ore

21 November 2024

Article

How to tell if you're an overconfident leader – and when it might cost you most

Leaders need to exude confidence and authority. But how do you know if you are veering towards overconfidence? Take this short test to find out.

Leadership

By Camellia Pham and Marleen Dieleman

in I by IMD Brain Circuits

19 November 2024

Article

The Leadership House: Building solid foundations for leadership and business success

Discover how "The Leadership House" framework empowers leaders to overcome challenges. Explore its six pillars—trust, teamwork, shared values, goals, accountability, and empowerment.

Business Transformation Leadership Organizational Culture Performance Management

By Patrick Flesner

in I by IMD

Video

The promise and pitfalls of employee well-being initiatives

IMD Dean of Research, Anand Narasimhan, shares his insights on fostering a resilient, empowered, and engaged workforce.

Leadership Organizational Change Workplace Well-Being

By Anand Narasimhan

in I by IMD

Article

How emotional intelligence is the best defence against GenAI threats

Emotional intelligence is essential for recognizing and managing artificial intelligence (AI) enabled manipulation, especially in scams. Organizations should train employees to spot emotional triggers and practice reflection to mitigate generative...

Artificial Intelligence Disruption Organizational Behavior

By Öykü Işık

in WEF Forum

15 November 2024

Case Study

Mastercard 2023: Rewired for infinite optionality

Disruption Digital Strategy

By Howard H. Yu, Mark J. Greeven and Martin Králik

Article

Family Enterprise Ecosystem - Mental Health

An exploration of mental health in family business and its triggers, symptoms, and implications on the family enterprise ecosystem with tangible next steps to help leaders achieve long-term success.

Future Readiness Human Resources Leadership Family Business

By Peter Vogel, Elizabeth Tetzlaff and Peter Jaskiewicz

in I by IMD

14 November 2024

Article

Master childhood emotions to become a better leader

We are at the mercy of behaviors ingrained from childhood. These practical steps will help you identify and overcome your emotions to reach your full potential.

Communication Decision Making Leadership Workplace Well-Being

By Nikolas Kinley and Shlomo Ben-Hur

in I by IMD

Se il manager sceglie di centralizzare la catena decisionale

By Alfredo De Massis and Paolo Lacchè
in Il Sole 24 ore 21 November 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Team Dynamics

Organizational Behavior

Leadership

Browse all topics

The Leadership House: Building solid foundations for leadership and business success

By Patrick Flesner
in I by IMD

Summary

Discover how "The Leadership House" framework empowers leaders to overcome challenges. Explore its six pillars—trust, teamwork, shared values, goals, accountability, and empowerment.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business Transformation

Leadership

Organizational Culture

Performance Management

Browse all topics

The promise and pitfalls of employee well-being initiatives

By Anand Narasimhan
in I by IMD

Summary

IMD Dean of Research, Anand Narasimhan, shares his insights on fostering a resilient, empowered, and engaged workforce.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Organizational Change

Workplace Well-Being

Browse all topics

How emotional intelligence is the best defence against GenAI threats

By Öykü Işık
in WEF Forum 15 November 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Disruption

Organizational Behavior

Browse all topics

Mastercard 2023: Rewired for infinite optionality

By Howard H. Yu Mark J. Greeven and Martin Králik
Case reference: IMD-7-2455 ©2024

Summary

In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption. The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.

Reference IMD-7-2455

Organization Mastercard

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Digital

Strategy

Browse all topics

Family Enterprise Ecosystem - Mental Health

By Peter Vogel Elizabeth Tetzlaff and Peter Jaskiewicz
in I by IMD 14 November 2024

Summary

An exploration of mental health in family business and its triggers, symptoms, and implications on the family enterprise ecosystem with tangible next steps to help leaders achieve long-term success.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Future Readiness

Human Resources

Leadership

Family Business

Browse all topics

Master childhood emotions to become a better leader

By Nikolas Kinley and Shlomo Ben-Hur
in I by IMD

Summary

We are at the mercy of behaviors ingrained from childhood. These practical steps will help you identify and overcome your emotions to reach your full potential.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Communication

Decision Making

Leadership

Workplace Well-Being

Browse all topics