Many businesses have seen their markets and competitive set transformed over the past decade. This revolutionary context has created many high‐velocity markets, where rapid change is a constant, and defining the strategic direction of a firm becomes a more complex activity. This paper seeks to argue that organizations can win in high‐velocity markets by adapting their resource base, renewing capabilities and competencies and achieving dynamic capability.
An extensive review of business and management literature is combined with primary research into a number of large media companies.
Winning in high‐velocity markets requires organizations to adapt their resource base, in a compressed timescale, due to the fast changing nature of market conditions.
Organizations react differently in the same high‐velocity market conditions. Some will look for opportunities that will provide them with a platform for a step change in their capabilities and competitiveness. Others will batten down the hatches and wait for the storm to pass, and in doing so, will lose their competitive edge.
The knowledge on dynamic capability is fragmented and often untested in practice. This paper consolidates various perspectives and illustrates it in a case study from the media industry. It provides CEOs with a strategic recipe to develop dynamic capability in their organizations.
