Strategies for a Changing Environment
Joseph A. Schumpeter coined the term “creative destruction” in his book Capitalism, Socialism, and Democracy published in 1942. Much has been written about it recently due to the fact industry life cycles are becoming shorter. Environments are dynamic, not static and therefore firms cannot simply focus on “core competencies” as a basis for firm strategy. If they do, they will be preparing for the past rather than the future.