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It seems that "turning inward" may not be a bad sign in business. There are certainly military examples, such as the Japanese leaders in the battle of Midway who turned inward in confusion and lost their advantages (catastrophically).
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However military engagements are very timebound, and good execution can reaction can only happen if there is a lot of "turning inwards" before and between engagements. In business, competition is rarely timebound in that same sense.
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In a sense it seems that turning inwards is a necessary step to re-orienting and adapting. But if it's forced when time is limited then it may be costly. Aside from that, a prescription to not turn inwards when challenged almost sounds like a recipe for hubris.
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