Ecological model of competition

Traditional economics models the economy on the principles of physics (force, equilibrium, inertia, momentum, and linear relationships).

This can be seen in the economics lexicon: terms like labour force, market equilibrium, capital flows, and price elasticity.

Classical Newtonian physics was the state of the art in science when Adam Smith was formulating the first principles of economics in the 18th century.

Businesses operate in a complex environment with interlinked sets of determinants.

Companies that are able to develop a successful business model and turn a core competency into a sustainable competitive advantage will thrive and grow.