The numbers tell a stark story: 62% of Generation Z consumers globally will abandon their favorite brands if they find something better, according to Oliver Wyman Forum research, This shift represents a threat for businesses that have relied on customer 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.
- 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.
- 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.
- 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.
Once your role is clear, choosing the right strategy becomes simpler. Our report identifies four tactics to thrive in the blurred economy:
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. Externalize internal capabilities to generate new revenue streams
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. 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.
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. Orchestrate ecosystem partnerships to leverage strengths
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.
Ecosystem success depends on timing, focus, and adaptability
Building an ecosystem can involve many expensive mistakes. The most critical error is starting too early — many companies rush into ecosystem building before establishing a solid foundation, leading to unfocused execution and diluted resources.
Others fall into the trap of unclear strategic direction, developing offerings that are either too close to their core business to drive meaningful growth or too far removed to leverage existing capabilities effectively.
An imbalance between internal innovation and external partnerships can be just as risky. Some companies rely too heavily on internal development, slowing progress, while others outsource critical components without proper oversight.
Perhaps most critically, many firms refuse to pivot quickly when initial approaches stall. In the ecosystem economy, the ability to fail fast and learn quickly often determines long-term success.
Companies that act decisively will unlock new markets and create superior customer experiences. Those that don't risk becoming irrelevant as more agile competitors reshape their industries around them.
But the message comes with a crucial caveat: transformation without a strong core foundation is a recipe for failure. The most successful ecosystem builders protect their primary business while systematically expanding into adjacent opportunities.