{"id":6051,"date":"2019-12-30T06:29:24","date_gmt":"2019-12-30T11:29:24","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=6051"},"modified":"2021-12-27T16:36:13","modified_gmt":"2021-12-27T21:36:13","slug":"how-do-we-drive-growth-during-uncertain-turbulent-markets","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/how-do-we-drive-growth-during-uncertain-turbulent-markets\/","title":{"rendered":"How Do We Drive Growth during Uncertain, Turbulent Markets?"},"content":{"rendered":"

Over the years, hundreds of frameworks around Strategy Development<\/a> have been developed. Each offers its benefits and drawbacks; and is optimal for certain competitive and organizational situations.<\/p>\n

\"\"When looking to drive growth amidst uncertain, turbulent times, Capabilities-Driven Strategy (CDS)<\/a> is the framework of choice.<\/p>\n

As the name suggests, CDS is all about developing sustainable business capabilities–i.e. core competencies<\/a>. Companies need to take care or build those capabilities that are genuinely needed and not those that do not serve our customers. Capabilities do not manifest themselves overnight. They take time to grow.<\/p>\n

Organizations that have mastered the art of developing and implementing a Capabilities-Driven Strategy have grown to develop the world’s leading brands, such as IKEA, Amazon, and Starbucks (more on these later). These companies have developed “distinctive” capabilities. Distinctive capabilities are used to propel these organizations to reach Operational and Organizational Excellence.<\/p>\n

A Capabilities-Driven Strategy is founded upon 3 pillars (depicted below).<\/p>\n

\"\"<\/a><\/p>\n

Together, the 3 pillars of CDS drive our Competitive Advantage<\/a>. A true Capabilities-Driven Strategy is the most reliable way for a company to thrive when the\u00a0rules of the game are in flux.<\/p>\n

A CDS is outward-looking. It starts and ends with customers. It involves building up a portfolio of ideas, skills, and competencies that are put together. Together, it can enable the company to consistently attract its primary customers.<\/p>\n

Now, let’s look at a few notable real world examples.<\/p>\n

IKEA<\/strong>
\nFurniture store, IKEA, leverages its distinctive capabilities to deliver value through providing functional and stylish home furnishings at very low prices with a high level of customer engagement. Its capabilities include:<\/p>\n