MAC 301
SUSTAINABILITY AND
STRATEGIC AUDIT
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MAC 301– MODULE 4
SUSTAINABLE STRATEGIZING:
EXTENDING COMPETITIVE
ADVANTAGES TO VIABILITY
ADVANTAGES
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TOPIC OUTLINE:
• Erosion of Competitive Advantages
• Competitive Advantages of a Sustainable Business
• Sustainability of Organizations and Networks: Moving Towards Viability Advantage
• Key Elements of Viability Advantage
• Viability Advantage of a Sustainable Business
• Making Viability Advantage Real: Open Strategizing
• Viability Mindset: The Power of Strategic Thinking
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COMPETITIVE ADVANTAGES
Strong Brand & Market Leadership
Robust Hardware & Innovation
Efficient Supply Chain & Manufacturing
Global Distribution & Carrier Relationships
Symbian OS Dominance
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COMPETITIVE ADVANTAGES
Strong Brand & Market Leadership
Robust Hardware & Innovation
Efficient Supply Chain & Manufacturing
Global Distribution & Carrier Relationships
Symbian OS Dominance
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
V
UNCERTAINTY
U
COMPLEXITY
C
AMBIGUITY
A
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
Frequent and
unpredictable changes,
even when their causes are
understood.
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
V
UNCERTAINTY
U
COMPLEXITY
C
AMBIGUITY
A
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EROSION OF COMPETITIVE ADVANTAGES
UNCERTAINTY
Lack of knowledge about
future events, possible
outcomes, and their
impact.
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
V
UNCERTAINTY
U
COMPLEXITY
C
AMBIGUITY
A
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EROSION OF COMPETITIVE ADVANTAGES
COMPLEXITY
Interconnected and
unpredictable relationships
between different factors in
a system.
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
V
UNCERTAINTY
U
COMPLEXITY
C
AMBIGUITY
A
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EROSION OF COMPETITIVE ADVANTAGES
AMBIGUITY
Uncertainty about fundamental
rules and cause-and-effect
relationships.
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EROSION OF COMPETITIVE ADVANTAGES
VULNERABILITY
V
UNCERTAINTY
U
COMPLEXITY
C
AMBIGUITY
A
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NOKIA’S DOWNFALL
Failure to Recognize the Smartphone
VULNERABILITY Revolution
UNCERTAINTY Weak Software & OS Strategy
COMPLEXITY Slow Decision-Making & Bureaucracy
AMBIGUITY Losing to Android & iOS Ecosystems
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SUSTAINABILITY
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COMPETITIVE ADVANTAGES OF A SUSTAINABLE BUSINESS
What Nokia Should Have
Sustainability Strategy What Nokia Did Wrong
Done
Quickly adopt Android and
Adaptability (Handling market Stuck with outdated Symbian
simplify decision-making to stay
shifts) OS and slow decision-making
competitive
Focused too much on Invest in software &
Innovation & Differentiation
hardware, weak in software & ecosystem, create eco-
(Staying ahead)
app ecosystem friendly, modular phones
Brand Strength & Market Rebuild trust by listening to
Lost brand relevance, confused
Perception (Winning customer customers and positioning as a
customers with Windows Phone
trust) sustainable tech leader
Lead in energy-efficient,
Regulatory Advantage Ignored rising trends in privacy
recyclable phone
(Staying ahead of policies) & sustainability
manufacturing
Diversify strategy, invest in
Risk Management (Future- Over-reliance on Symbian, no
both hardware + software for
proofing) backup plan
resilience
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COMPETITIVE
ADVANTAGE
VIABILITY
ADVANTAGE
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KEY ELEMENTS OF VIABILITY ADVANTAGES
Key Elements Viability Advantage Competitive Advantage
Focuses on cost leadership,
Focuses on efficiency &
productivity, and operational
1️⃣ Operative Management execution to ensure smooth
excellence to gain an edge over
operations for long-term success.
competitors.
Aligns with customer needs & Seeks to outperform
industry trends for continuous competitors by offering superior
2️⃣ Business Management
relevance and market products, services, or lower
positioning. prices.
Develops dynamic capabilities—
Builds core competencies to
the ability to adapt, integrate,
3️⃣ Strategic Management gain a temporary competitive
and reconfigure resources for
edge over rivals.
sustained success.
Navigates existing market
Ensures businesses comply with
conditions but often focuses on
& influence regulations,
4️⃣ Institutional Management immediate financial
adapting to external pressures for
performance rather than
long-term industry stability.
influencing policy.
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VIABILITY ADVANTAGES OF A SUSTAINABLE BUSINESS
Viability Advantage What Nokia Did Wrong What Nokia Should Have Done
Focused too much on short-term
Invest in smartphone innovation
market dominance with feature
Long-Term Strategic Vision earlier (before iPhone & Android).
phones, ignoring the smartphone
Prepare for market shifts.
revolution.
Ignored key industry changes like
Be more flexible & adaptive—
touchscreen phones & app-based
Resilience to Change experiment with Android early,
ecosystems. Slow to adapt to iOS and
improve software capabilities.
Android.
Focused only on hardware, lacked Develop a strong software
Sustainable Business Practices software & ecosystem development. ecosystem & open-source platforms
Poor developer support. to keep up with competitors.
Relied on old technology (Symbian Embrace disruptive innovation—
Strategic Innovation OS) and failed to innovate in user invest in R&D, create a developer-
experience. friendly app store.
Internal conflicts & slow decision- Streamline management, invest in AI,
Long-Term Resource Management making led to poor allocation of cloud computing, and mobile
resources. ecosystems for the future.
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OPEN
STRATEGIZING
TOP-DOWN
DECISION MAKING
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OPEN STRATEGIZING
Open strategizing is a modern way of creating
business strategies that emphasizes collaboration,
transparency, and inclusiveness.
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WHY OPEN STRATEGIZING MATTERS?
Encourages new ideas & faster innovation
Helps businesses adapt to change more effectively
Builds stronger relationships with stakeholders
Creates long-term success in a competitive world
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VIABILITY MINDSET: THE POWER OF STRATEGIC THINKING
Strong Leaders: Weak Leaders: Resistant to
Adaptable, Visionary, Change, Reactive, Short-Term
Innovative Thinkers
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VIABILITY MINDSET: THE POWER OF STRATEGIC THINKING
SATYA NADELLA
CEO of Microsoft, 2014
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VIABILITY MINDSET: THE POWER OF STRATEGIC THINKING
ELON MUSK
CEO of Tesla
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THE ROLE OF STRATEGIC THINKING
• Strong leadership is crucial for maintaining long-term success.
• Adaptability and openness to change help leaders navigate
uncertainty.
• Strategic thinking allows organizations to stay ahead of market
shifts.
• Forward-thinking leaders ensure sustainability in a VUCA world.
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Winning today means nothing if you can’t survive
tomorrow.
In a world of disruption, businesses that resist change
become history, while those that adapt create the future.
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The key isn’t just competing—it’s evolving, innovating, and
staying ahead before the world forces you to catch up.
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Will you lead the change or be left behind?
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MAC 301– MODULE 4
SUSTAINABLE STRATEGIZING:
EXTENDING COMPETITIVE
ADVANTAGES TO VIABILITY
ADVANTAGES
ALPINE SKI HOUSE
NEXT WEEK…
THANK
QUIZ 2
Module 3: Why Porter is Not Enough
Module 4: Sustainable Strategizing
YOU!
March 8&9, 2025
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