By Constantinos C. Markides
Game–Changing techniques explains the explanations at the back of this puzzle and offers functional rules on how verified agencies couldn't purely realize new radical company types but in addition develop them subsequent to their latest company types. The problem for tested agencies isn't the discovery of a brand new enterprise version the genuine problem is how you can make company types coexist. This e-book bargains suggestion on how tested corporations can enforce buildings and techniques that make the recent company version much less conflicting and extra palatable to the prevailing enterprise.
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Additional info for Game-Changing Strategies: How to Create New Market Space in Established Industries by Breaking the Rules
Sample text
As a result, the managers of the organization view them more as a threat to repel than as an opportunity to exploit. indd 19 4/1/08 10:51:00 AM 20 GAME-CHANGING STRATEGIES Furthermore, suppose that the established firm decides to go ahead with a new business model. The dilemma then is how can its people continue managing their existing business with one business model while at the same time serving another customer segment in the same business with a second business model. This challenge is not the same as trying to serve different customer segments with different brands, as Unilever or P&G or Volkswagen or General Motors or Mercedes do.
And Mitchell and Coles (p. indd 5 4/1/08 10:50:57 AM 6 GAME-CHANGING STRATEGIES that a business model is the sum of the answers that a company gives to these three interrelated questions: • Who should I target as customers? • What products or services should I be offering them and what should be my (differentiated) value proposition? • How should I do this in an efficient way? While I do not pretend that the definition adopted here is exhaustive or better than all the others proposed by other people, I do believe that it is adequate for the purposes of exploring business-model innovation.
Porter (1996) identified three main factors that give rise to these trade-offs. First, trade-offs arise from inconsistencies in a company’s image or reputation. Firms that try to offer two different kinds of value that are not consistent with each other run the risk of jeopardizing their existing image and reputation. Second, trade-offs occur as a result of the particular set of activities that a company needs to compete successfully in its chosen position. A unique strategic position requires a particular set of tailored activities that are different from those needed in other positions in the industry.