BuildingFractal Advantage in a Fragmenting World

In this article Boston Consulting Group consultors present the powerful forces that are reshaping the
global business environment.
And in this context to stay competitive, companies need to evolve beyond the traditional quest for scale.

They believe it is the result of an unexpected confluence of three powerfully disruptive forces: the fragmenting of the geopolitical consensus, the growing presence of digitization in the value creation process, and the rapid rise of new forms of innovation for product development.

Together, these forces are creating a world with much greater fragmentation, where the traditional advantages of global scale are harder to achieve than they once were.

They suggest that the companies must seek a new source of competitive strength – one we call fractal advantage. By deploying these fractal strategies, companies can expect to prosper not because of better economies of scale but because of better customer responsiveness and loyalty. The fractal approach
generates more conversations, interactions, and connections – which, in turn, generates the kind of insights and innovation needed to create better solutions to customer needs. And these rapidly evolving, highly customized solutions are the foundation for exponential profitable growth in a fragmenting world.

Keywords: complexity, strategy, fractal, fractality, fractal advantage.

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