Success Trap
A success trap occurs when a company becomes overly focused on its current success and fails to adapt to changing market conditions or innovate. The trap stems from the belief that past strategies will continue to drive future growth, leading to stagnation or failure as competitors or market dynamics evolve. Companies in a success trap may miss out on new opportunities or emerging trends because they are overly committed to their existing operations.
Example
A technology company that has dominated its market with a specific product line may fall into a success trap by neglecting to invest in new technologies, eventually losing its competitive edge.
Key points
• Occurs when a company’s focus on current success hinders innovation.
• Leads to stagnation or failure as market conditions change.
• Prevents companies from adapting to new opportunities or trends.
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