Businesses might face several challenges when trying to overcome inertia and entropy. These include resistance to change from employees, outdated business models, and lack of innovation. To address these obstacles, businesses can encourage a culture of continuous learning and innovation, regularly review and update their business models, and engage employees in the change process.

stars icon
Questions and answers
info icon

The book 'Good Strategy, Bad Strategy' has significantly influenced corporate strategies and business models by emphasizing the importance of clear, coherent strategy over vague objectives. It has taught businesses to focus on overcoming key challenges and leveraging unique advantages, rather than pursuing numerous unrelated goals. The book's insights have also highlighted the dangers of inertia and entropy, encouraging businesses to adapt and evolve rather than resisting change. For instance, the failure of Blockbuster to abandon its retail stores, as highlighted in the book, serves as a cautionary tale for businesses to avoid strategic inertia.

A startup can use the concepts of inertia and entropy to its advantage by understanding and leveraging them. Inertia, or resistance to change, can be used to predict competitors' actions and responses. If a competitor is known for its inertia, a startup can anticipate that it will be slow to adapt to new trends or technologies, providing an opportunity for the startup to gain a competitive edge. On the other hand, entropy, or disorder within a system, can be minimized within the startup to maintain efficiency and productivity. By actively managing and reducing entropy, a startup can ensure smooth operations and prevent unnecessary complications or delays.

Netflix is a prime example of a company that has successfully understood and managed its own inertia and entropy. When Blockbuster was unable to abandon its retail stores due to inertia, Netflix capitalized on this and surpassed Blockbuster to become an industry leader. Another example is Apple, which has consistently innovated and adapted to changes in the technology industry, thereby managing its inertia and entropy effectively.

View all questions
stars icon Ask another question
This question was asked on the following resource:

Good Strategy, Bad Strategy

Even some of the world’s biggest organizations do strategy poorly, and incorrectly credit their succ...

View summary
resource preview

Download and customize more than 500 business templates

Start here ⬇️

Go to dashboard to view and download stunning resources