Winner-Takes-Most Dynamics
Martin's answer to what changed most for strategy over his career: the economics of winning steepened. Two drivers: The fixed-cost shift.
Two drivers:
The fixed-cost shift. Value creation migrated from variable-cost activities (making each unit) to fixed-cost activities (software, data, brand, R&D). High fixed cost + near-zero marginal cost means scale compounds: the leader funds better product from a bigger base, attracting more scale.
Faster price/value discovery. Digital transparency lets customers find the best offer quickly. The friction that once protected mediocre positions is gone.
Together: markets tip toward the distinctively best; the undifferentiated middle is squeezed harder and faster than ever. Being slightly better at the same game, Operational Excellence Is Not Strategy, pays less every year, while a real How to Win pays more.
Martin's conclusion: strategy is not less important in a fast-moving world (a common claim), it is more important, because the penalty for Playing to Play has grown and the window to copy a winner (The Cant-Wont Test) has shortened.
Our synthesis of Roger Martin’s published work, sources credited. Read the originals: they’re excellent.
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