From evolutionary biology, named by Leigh Van Valen (A New Evolutionary Law, 1973) and popularized by Matt Ridley (The Red Queen, 1993), and carried into business by William P. Barnett and Morten T. Hansen (The Red Queen in Organizational Evolution, 1996).
Explains why, among rivals who keep improving, a firm that stops adapting loses ground even as its own capability holds steady, and treats improvement as a standing cost.
When to reach for it
When a leading position is being treated as secure while competitors, attackers, or suppliers keep raising the bar.
How it runs
- Check whether rivals in the field improve continuously.
- If so, budget capability investment as a recurring cost.
- Measure position against rivals, not in absolute terms.
- Fund holding position separately from growth.
Where it sits in SOLVE eX
Go to the source
- A New Evolutionary Law, Evolutionary Theory 1, 1973
- The Red Queen: Sex and the Evolution of Human Nature, 1993
- The Red Queen in Organizational Evolution, Strategic Management Journal 17, 1996