Gaining the edge in new business development

Abstract

Purpose

Most managers understand that the ability of their business to out‐perform competitors and earn strong returns is greatest when they stick closely to markets that they know well and where they have all the advantages of the incumbent. But if successful strategy is all about playing to our strengths – which of course tend to concentrate in those sectors where we've been doing business successfully for years – how do we ever do anything new? How do we tap into new sources of growth while still finding competitive advantage and building value for shareholders? In this article, the author shows how business leaders can overcome this paradox.

Design/methodology/approach

The article discusses diverse examples from healthcare, airlines, retailing, package delivery and jet engines.

Findings

Strategic market position is a framework that enables managers to understand the range of business activities that are within bounds of where existing businesses can support competitive advantage and strong profitability.

Originality/value

The article shows how strategic market position can help uncover profitable new business growth.

Citation

Jackson, S.E. (2007), "Gaining the edge in new business development", Journal of Business Strategy, Vol. 28 No. 3, pp. 4-5. https://doi.org/10.1108/02756660710746292