Incremental improvements in a business are generally non-disruptive. These are easy for the organization to adapt. Customers, too, are also able to accept incremental improvements easily.
Over time these measures help improve operational efficiency and increase competitive advantage. When competitors can quickly copy incremental changes, the business will face the threat of strategic convergence.
Strategic convergence is a condition in which there is little differentiation between your business and your competitor. In such situations, the customer base gets divided and erodes to competitors over time.
It is time then to look at your business strategy and model. A new strategic plan and business models will help you bring about transformational change, increase customers’ willingness to pay, and once again achieve a competitive advantage over competitors.
The phenomenon described above keeps repeatedly happening to businesses. Founders and smart and perceptible boards can spot the emergence of strategic convergence, erosion of customers’ willingness to pay, and get disrupted.
For this reason, keeping an eye on your business strategy and business model is critical for business health.