What to Do Against Disruptive Business Models (When and How to Play Two Games at Once)

By: Material type: ArticleArticleLanguage: ENG Series: ; 51Publication details: Summer 2010 0Edition: 4Description: 25-32 PpSubject(s): DDC classification:
  •  Mar
Online resources: Summary: The article addresses how to manage disruptive business models. According to Michael Porter and other strategy theorists, most companies are unsuccessful in their efforts to compete with two business models at once because the two models can conflict with each other. One solution to this problem is called the innovator's solution or keeping the two business models separate in two distinct organizations. However, with this solution, companies cannot exploit the synergies between the established company and the separate unit.
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The article addresses how to manage disruptive business models. According to Michael Porter and other strategy theorists, most companies are unsuccessful in their efforts to compete with two business models at once because the two models can conflict with each other. One solution to this problem is called the innovator's solution or keeping the two business models separate in two distinct organizations. However, with this solution, companies cannot exploit the synergies between the established company and the separate unit.

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