What is meant by "strategic inertia"?

"Strategic inertia" refers to the tendency of an organization to resist change and maintain its established strategies even in the face of new market conditions or external pressures that may necessitate a shift in approach. This resistance can stem from a range of factors, such as deeply ingrained corporate culture, fear of the unknown, or a successful past that leads to complacency.

The concept highlights how organizations can become overly reliant on practices and strategies that may have been effective in the past but are no longer suitable in a changing environment. This can be detrimental as it hampers innovation and responsiveness to competitors or changing customer preferences.

In contrast, focusing on continuously adapting to new technologies or taking a proactive approach in response to market changes indicates a flexibility that is the opposite of strategic inertia. A systematic review of current strategies, while valuable for assessing effectiveness, does not necessarily imply resistance to change but rather an opportunity for reflection and adjustment. Therefore, the essence of strategic inertia lies in the reluctance or difficulty to evolve beyond established practices.