Cutting Edge Thinking

Expert insights, in-depth analyses, and forward-looking strategies to help businesses navigate complexity and seize opportunities.
The Era of Transient Competitive Advantage: Lessons from Companies Across EMEA
How Beyond Strategos Can Help
At Beyond Strategos, we specialize in helping organizations across EMEA navigate the complexities of transient competitive advantage. Whether it’s identifying new revenue streams, optimizing operational models, or embracing technology, our tailor-made strategies ensure that your business remains agile, innovative, and ahead of the curve.
Our bespoke approach, supported by an in-depth understanding of regional dynamics, equips clients with the tools and insights needed to thrive in a constantly shifting landscape.
In the rapidly evolving global business landscape, the idea of achieving and maintaining a sustainable competitive advantage has become elusive. Instead, businesses increasingly operate in a state of transient competitive advantage—a reality where success hinges on continuous innovation, agility, and adaptability. This paradigm shift is especially evident in the diverse economic environments of Europe, the Middle East, and Africa (EMEA), where companies must navigate a combination of advanced markets, emerging economies, and unique regional challenges.
This article explores how businesses across EMEA have embraced the concept of transient competitive advantage, providing examples of strategies, innovations, and pivots that led to measurable success.

Europe: Leveraging Technology to Stay Ahead
1. The Case of Norrgen Solar (Sweden)
Norrgen Solar, a mid-sized renewable energy firm in Sweden, found itself at a crossroads in 2018. The surge of global competitors in the solar panel industry, combined with tightening margins, forced the company to rethink its strategy.
Pivot: Instead of competing solely on manufacturing efficiency, Norrgen shifted to offering energy-as-a-service (EaaS), targeting rural municipalities and private companies with flexible, subscription-based solar solutions.
Outcome: By 2023, Norrgen reported a 35% annual growth rate, with over 50,000 energy subscriptions across Europe. This pivot allowed them to thrive in a space where customer relationships and service innovation, rather than hardware, drove competitive advantage.

2. Carrefour (France)
The retail industry has been among the hardest hit by technological disruption and shifting consumer preferences. Carrefour, one of Europe’s largest retail chains, realized that traditional hypermarkets were losing appeal.
Innovation: In 2020, Carrefour launched its Flash 10/10 stores, which rely entirely on AI-driven, cashierless technology, allowing customers to shop and pay in under 10 minutes.
Impact: Carrefour’s sales from these stores rose by 15% in urban centers, outperforming traditional locations. The company continues to iterate on this model, adapting to urban consumer needs while maintaining its edge in convenience.

Middle East: Capitalizing on Regional Dynamics
1. Careem (UAE)
Careem, the ride-hailing service headquartered in Dubai, disrupted traditional transportation models in the Middle East. However, the introduction of global giants like Uber created immense competitive pressure.
Strategy: Careem shifted from being a ride-hailing service to a "super app", integrating food delivery, bike rentals, and financial services. They leveraged regional knowledge to cater specifically to Middle Eastern consumers, including cash payment options and women-specific transportation services.
Result: By 2023, Careem’s revenues grew by 28% year-on-year, and the company expanded into 18 countries, showcasing the power of regional adaptation and service diversification in creating transient competitive advantage.

2. Saudi Aramco and Renewable Energy
Saudi Aramco, traditionally known for its dominance in oil production, began to recognize the volatility of its core business in the face of global decarbonization efforts.
Transformation: In 2021, the company launched the Renewable Energy Ventures Division, focusing on wind and solar projects in emerging markets across Africa. Aramco positioned itself as a dual-energy leader, providing oil for transitioning economies while developing renewable projects for the future.
Outcome: By 2024, renewable energy accounted for 10% of Aramco’s portfolio, positioning it as a global energy leader rather than a traditional oil giant.

Africa: Adapting to Local Challenges
1. M-Pesa (Kenya)
M-Pesa, a mobile money platform launched by Safaricom, has been a game-changer in financial inclusion across Africa. However, by 2018, competition from fintech startups threatened its dominance.
Adaptation: M-Pesa pivoted from basic money transfers to becoming a platform for micro-loans and savings, catering to unbanked populations.
Impact: Today, M-Pesa processes over 40 million transactions daily and serves 52% of Kenya’s GDP through its services. Its ability to constantly innovate ensures it remains an essential part of African economies.

2. Jumia (Nigeria)
Jumia, Africa’s leading e-commerce platform, struggled to compete against global giants like Amazon and Alibaba. Unlike its competitors, Jumia faced unique challenges such as inadequate logistics infrastructure and low internet penetration in rural areas.
Innovation: Jumia created a last-mile delivery ecosystem, leveraging local vendors and individual couriers to reach rural customers. It also launched JumiaPay, a digital payment platform tailored for African markets.
Result: Jumia’s gross merchandise volume grew by 32% in 2022, with 70% of its orders coming from previously underserved rural areas.

Key Themes Driving Transient Competitive Advantage in EMEA
From the examples above, several common themes emerge, highlighting what it takes to succeed in today’s era of transient competitive advantage:
1.Agility in Strategy: Companies like Norrgen Solar and Careem have demonstrated the importance of quickly pivoting to meet new demands.
2.Localized Innovation: M-Pesa and Jumia highlight the power of tailoring solutions to regional challenges.
3.Technology as an Enabler: Carrefour and Norrgen Solar leveraged technology not just to stay competitive but to redefine their industries.
4.Sustainability Focus: Aramco’s shift toward renewable energy and Norrgen’s solar solutions reflect the growing importance of sustainability in competitive positioning.
5.Customer-Centric Models: Across all examples, companies that centered their strategies on customer needs—whether through new services, pricing models, or accessibility—maintained their competitive edge.
Using BCG’s Strategy Palette to Navigate Today’s Business Complexities
Beyond Strategos and the Strategy Palette
At Beyond Strategos, we understand that no single strategy fits all business environments. Inspired by the principles of the BCG Strategy Palette, we help clients across EMEA identify their unique operating contexts and craft strategies tailored to their needs. Whether it’s guiding a startup toward a Visionary Strategy or helping an established business embrace Renewal, our bespoke solutions ensure clients stay competitive in an ever-changing world.
In the age of transient advantage, your strategy doesn’t just need a strategy—it needs the right strategy.
In today’s dynamic and volatile world, businesses are increasingly finding that a “one-size-fits-all” approach to strategy no longer works. Companies must navigate complex and diverse environments, making agility and adaptability critical. The BCG Strategy Palette, introduced in the book Your Strategy Needs a Strategy by Martin Reeves, Knut Haanæs, and Janmejaya Sinha, provides a framework for businesses to craft strategies tailored to their specific circumstances.
This article explores the five archetypes in the Strategy Palette—Classical, Adaptive, Visionary, Shaping, and Renewal—and their relevance to modern businesses. Using examples from industries and markets across the globe, we’ll demonstrate how companies are applying these strategies to achieve competitive advantage.

Understanding the Five Strategy Archetypes
The BCG Strategy Palette offers a systematic way for businesses to match their strategy to their operating environment. Here’s a brief overview of the five archetypes:
1.Classical Strategy (Compete): For predictable and stable environments, where competitive advantage can be achieved through planning and scale.
2.Adaptive Strategy (Evolve): For unpredictable and changing environments, where agility and experimentation are critical.
3.Visionary Strategy (Create): For environments ripe for innovation, where companies can create entirely new markets.
4.Shaping Strategy (Collaborate): For ecosystems and industries in flux, where businesses can influence and co-create the future with partners.
5.Renewal Strategy (Survive): For environments facing crisis or decline, where the focus is on survival and reinvention.

Applying the Strategy Palette to Modern Businesses
1. Classical Strategy: Competing on Efficiency and Scale
Example: Airbus (Europe)
The aerospace industry operates in a largely stable and predictable environment, with high entry barriers and long development cycles. Airbus has embraced a Classical Strategy, focusing on efficiency, scale, and incremental improvements to maintain its competitive edge against Boeing.
Action: Airbus has invested heavily in automation within its production facilities, allowing it to reduce costs and improve margins.
Outcome: By streamlining its manufacturing processes, Airbus achieved a 20% reduction in production costs for its A320neo family, helping it secure long-term contracts with major airlines.

2. Adaptive Strategy: Evolving in Dynamic Markets
Example: Zalando (Germany)
The fashion e-commerce market is characterized by rapidly shifting consumer preferences and high competition. Zalando has adopted an Adaptive Strategy, continuously iterating on its business model to stay relevant.
Action: Zalando uses data analytics to test pricing, product mixes, and marketing strategies in real time, adapting to trends as they emerge.
Outcome: In 2022, Zalando’s revenues grew by 12%, driven by its ability to pivot quickly to meet changing customer demands, such as sustainable fashion and personalized recommendations.

3. Visionary Strategy: Creating New Markets
Example: SpaceX (United States, with EMEA expansion)
SpaceX operates in a largely unexplored and underdeveloped market: commercial space travel and satellite deployment. Its founder, Elon Musk, exemplifies the Visionary Strategy, aiming to create entirely new markets and opportunities.
Action: By focusing on reusable rockets and drastically reducing the cost of space launches, SpaceX has revolutionized the aerospace industry.
Outcome: SpaceX secured $4.6 billion in global contracts in 2023 alone, including satellite launches for EMEA-based telecommunications providers, opening new revenue streams and setting the stage for interplanetary exploration.

4. Shaping Strategy: Collaborating to Influence Ecosystems
Example: Majid Al Futtaim (Middle East)
Majid Al Futtaim, a conglomerate in the Middle East, operates malls, cinemas, and supermarkets in a region undergoing rapid economic and social transformation. By adopting a Shaping Strategy, the company has become a key player in shaping the future of retail and entertainment in the region.
Action: Majid Al Futtaim has partnered with global technology providers to create smart malls that integrate AI-driven customer insights, augmented reality experiences, and cashless payments.
Outcome: By influencing the ecosystem and collaborating with partners, the company has increased footfall in its malls by 25%, even during challenging times like the pandemic.

5. Renewal Strategy: Reinventing in Times of Crisis
Example: Eskom (South Africa)
Eskom, South Africa’s electricity public utility, has faced immense challenges, including financial losses and aging infrastructure. To address these issues, it embraced a Renewal Strategy, focusing on survival and long-term transformation.
Action: Eskom has begun diversifying its energy portfolio, investing in renewable energy sources like wind and solar, while renegotiating debt terms to stabilize its finances.
Outcome: Eskom’s renewable energy projects now account for 10% of its energy output, signaling a shift toward sustainability and resilience.

Strategic Misalignment: The Risks of Choosing the Wrong Archetype
One of the most critical insights from the BCG Strategy Palette is the danger of misalignment between strategy and environment. Let’s explore a cautionary tale:
Example: Nokia (Europe)
In the early 2000s, Nokia dominated the mobile phone market with a Classical Strategy focused on efficiency and incremental innovation. However, the rapid emergence of smartphones created a highly dynamic and unpredictable environment—one better suited to an Adaptive or Visionary Strategy.
Result: By failing to adapt to the changing landscape, Nokia lost its competitive edge, with its market share dropping from 50% in 2007 to 3% in 2013.

How Businesses Can Use the Strategy Palette Today
Step 1: Assess Your Environment
Is your industry stable or volatile?
Are competitors and customers predictable?
Is there an opportunity to shape the future or create a new market?
Step 2: Match Strategy to Context
Use data and scenario analysis to determine which of the five archetypes best aligns with your operating environment.
Step 3: Be Ready to Pivot
Environments change rapidly, and businesses must remain flexible. A company using a Classical Strategy today may need to shift to an Adaptive or Renewal Strategy tomorrow.
Step 4: Balance Archetypes
Many businesses operate across multiple environments. For example, a conglomerate may use a Shaping Strategy in one division while employing a Renewal Strategy in another.

The Role of Leadership in Implementing the Strategy Palette
The Strategy Palette emphasizes that leadership plays a critical role in determining and implementing the right strategy. Effective leaders:
1.Diagnose the environment accurately.
2.Foster organizational agility.
3.Encourage innovation while managing risk.
4.Communicate a clear vision.
For example, Satya Nadella’s leadership at Microsoft has been a masterclass in using a Renewal Strategy to rejuvenate a struggling company, transitioning it from a product-based model to a cloud-first, service-oriented business.