Chapter 8 talks about flexibility. You have to be able to change at low cost, quickly within a firm. I would like to discuss my take on flexibility in relation to the NBA.
In the NBA, Teams (firms) have to pay close attention to flexibility when it comes to their players and more specifically their star players. This is primarily due to the fact that Players cannot be cheaply fired. Players with higher injury risk shouldn’t be signed or should be signed for minimal amounts due to the uncertainty of whether they will get injured or not. Players that are more flexible and less injury prone should be well compensated.
In regards to flexibility, I believe it is true that teams with more flexible star players will achieve the most success over any given season. Being a more flexible star player means that you are less susceptible to injury. Also, meaning that the uncertainty of a more a flexible star player is much lower than that of a more injury prone NBA star. Thus, teams can create a competitive advantage by employing the more flexible stars whose availability (# of games played) tend to be far greater. The more star players are on the court and able to play; the better chance their teams have to win.