Necessity Breeds Oportunity: Constraints, Innovation and Competitive Advantage

The quest for competitive advantage drives companies to increase both efficiency and responsiveness to customers, but there is a trade-off between the two. Improving responsiveness to customers entails higher inventory, distributed warehousing, and multiple transportation channels that raise costs and compromise efficiency. Companies find this balance harder to achieve in emerging markets because of constraints in the external environment like infrastructural bottlenecks and talent shortages. … [ Read more ]

Atanu Chaudhuri, Craig Giffi, Kumar Kandaswami, Shalabh Kumar Singh

While companies assume there is necessarily a trade-off between efficiency and responsiveness in a constrained environment, research shows that only those organizations operating near the performance frontier (the optimal performance a company can achieve) should expect trade-offs. The companies that operate away from the frontier have the potential to improve both … [ Read more ]