In today’s fast-moving marketplace, even long-time customers are willing to switch brands if they find something better — a trend especially pronounced among younger, digitally native consumers. This shift represents a growing threat for businesses that have relied on loyalty as a competitive edge.
Welcome to the blurred economy. A new reality where traditional industry boundaries are dissolving faster than companies can adapt. It’s not simply a story of digital disruption anymore. It’s about something far more complex: the complete reimagining of how businesses create value in a world where telecom companies offer banking services, retailers become logistics providers, and ride-hailing apps transform into digital marketplaces.
Three forces reshaping business strategy in the blurred economy
The shift to a blurred economy is being fueled by three interconnected forces that are transforming industries from the ground up.
1. Consumer behavior: Nearly 60% of consumers want retailers to offer expanded services, according to our research in the UAE and Saudi Arabia. They want integrated experiences that solve multiple problems in one place. For instance, 85% of UAE consumers and 84% in Saudi Arabia want grocery retailers to expand their loyalty programs to include services like ordering food and booking restaurants.
2. Increased competition: Pure-play digital companies — with particularly successful recent examples emerging from East Asia — are rewriting the rules with ultra-fast supply chains, marketing powered by artificial intelligence (AI), and data-driven approaches that pressure traditional players. These companies no longer compete on traditional metrics. Instead, they define new ways for customers to measure value.
3. Pace of change: Things are changing rapidly. Yesterday’s partners are today’s rivals as industry boundaries dissolve. Retailers are entering financial services to capture higher margins, while telecom operators are expanding their cloud and fintech offerings. Serving customers across multiple touchpoints is no longer a differentiator — it’s the minimum standard for survival.
Navigating the blurred economy with an ecosystem strategy
Many companies are responding to industry disruption by forming partner networks that share data, skills, and revenue. Success depends on understanding your role in this new landscape. Some companies excel as enablers, providing the infrastructure. Others thrive as specialized service providers within existing ecosystems. The most ambitious become platform operators, orchestrating entire networks of partners while maintaining control over the customer relationship.
1. Protect core business before expanding methodically
Guard the core business first, then explore adjacent markets in measured steps. Optimal resource allocation can follow a 70-20-10 split: 70% focused on protecting and improving core operations, 20% on adjacent market opportunities, and 10% on experimental ventures that could define future growth.
2. Leverage internal ecocystsems for external growth
Ecosystems built for internal efficiency can be externalized to generate new revenue streams. These can include loyalty programs, data analytics, and payment solutions. Externalizing ecosystems built for internal users can help companies evolve from standalone entities to enablers of broader networks.
3. Shift focus to solving customer problems over selling products
Organize around customer needs rather than product lines. This requires a fundamental reorientation — from departments organized around products to teams structured around customer segments and journeys. Success is measured not by revenue per product, but by customer lifetime value and satisfaction scores.
4. Collaborate, innovate, elevate to generate new revenue streams
The ecosystem economy rewards companies that can orchestrate partnerships effectively. Pair your strengths with partners — whether you supply backbone tech, add niche services, or run the platform yourself.
Also, invest in the talent and tools required to deliver new offerings. This means creating research and development centers focused on innovation, establishing intrapreneurial hubs to foster creativity, and sometimes launching venture-building factories to create entirely new business lines.
