Red Queen Dynamics
Companies must continuously innovate just to maintain competitive position.
Evolutionary arms races create 'Red Queen' dynamics (from Alice in Wonderland: 'it takes all the running you can do to stay in the same place'). Neither predator nor prey gains permanent advantage - each improvement by prey favors predator counter-adaptations, which favor prey counter-counter-adaptations. Both lineages continuously evolve just to maintain relative fitness. The result: increasingly sophisticated adaptations on both sides without either consistently 'winning.'
Business Application of Red Queen Dynamics
Companies must continuously innovate just to maintain competitive position. Standing still means falling behind as competitors advance. This creates perpetual innovation pressure where competitive advantage is temporary and continuous improvement is required for survival.