The Octopus strategy - how corporate transformation can help your company to navigate turbulent times

Kurt Verweire

By Kurt Verweire

Professor of Strategy

02 February 2024

Traditional strategic models focus on growth - and how to face up to the competition. But how do you respond to shocks and major shifts resulting from natural disasters, pandemics or geopolitical crises? Most companies have risk management procedures in place, but turbulence also comes with opportunities, next to risks. In his book on Strategy in Turbulent Times, Professor Kurt Verweire sets out 4 turbulence strategies that can help companies not only to survive but also to thrive. 

Corporate transformation is one of four strategic options that companies have to deal with turbulence. In this strategy, companies do not only adapt their core business model – but they also introduce something entirely new.

Thumbnail video series Strategy in Turbulent Times

Kurt Verweire explains that – out of the 4 turbulence strategies – corporate transformation is definitely the most challenging option. It requires a dual transformation, and this makes it the most fundamental and daunting strategy.

Thumbnail video series Strategy in Turbulent Times

The Octopus strategy - how corporate transformation can help your company to navigate turbulent times

In his book on Strategy in Turbulent Times, Professor Kurt Verweire sets out 4 turbulence strategies that can help companies not only to survive but also to thrive. In this video, he explains the Octopus strategy.

To illustrate this strategy, Kurt provides several examples in his book. One instance involves a Norwegian publisher shifting from printed to digital newspapers and venturing into classified advertising. Another case features Barnes & Noble moving into education books and launching a new brand of e-readers called Nook, which proved unsuccessful. The third example highlights Accor Hotels' complete overhaul of its business model in response to challenges posed by platforms like Airbnb.

The corporate transformation strategy, according to Kurt, demands simultaneous innovation and transformation, making it a significant undertaking for any company. To capture the essence of this strategy, he compares it to the octopus, an animal known for its transformative abilities. The octopus can change colours and shape, demonstrating adaptability. But they also play with shells, and build houses, which demonstrates an innovation capability.

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Kurt Verweire

Kurt Verweire

Professor of Management Practice in Strategy