This paper aims to examine the role strategic problem identification and resolution played in identifying and capturing new sources of competitive advantage as CSL Limited (CSL) transformed itself into the world’s fifth-largest biotechnology company. Historical accounts of superior business growth are usually explained by looking back to identify a firm’s sources of competitive advantage. However, what managers really want to know is how to identify opportunities to create and capture competitive advantage ahead of competitors.
The authors examined CSL’s journey between 1994 and 2019 through a case study approach and the lens of the problem-identification and problem-solving perspective (PSP). The PSP assumes strategic problems act as antecedents to discovering and capturing new sources of competitive advantage. The problems a firm identifies and resolves influences whether or not, in what direction and for whom an organization creates value.
The authors provide examples of the strategic problems CSL identified and how they acted as the catalyst to proactively identify new sources of competitive advantage. The formulated problems helped manager to see in advance what resources, capabilities and governance mechanisms would be required to create and capture value.
Generalizing the lessons learned, the authors propose a business-problem classification framework and portfolio approach to encourage managers to identify, formulate and resolve different types of strategic problems. These problems could motivate firms to tackle problems beyond which they have successfully tackled before and discover new sources of competitive advantage ahead of competitors.
