Article at a glance:

Making the most of uncertainty

Shape or adapt? For years, executives have regarded the question as perhaps their most fundamental strategic choice. Is it better to try to influence, or even determine, the outcome of crucial elements of an industry's structure and conduct? Or is the wiser course to scope out defensible positions? As globalization, digitization, and unfettered capital markets raise levels of uncertainty and rewrite definitions of opportunities and risks, this basic strategic choice has morphed into a more complex high-stakes problem.

The take-away

There is no one-size-fits-all answer for all companies in all situations. But by more thoroughly thinking through the level and nature of the residual uncertainty facing decision makers, strategists can define feasible alternatives and make better-informed choices to shape or adapt.