Strategic Options for Old-Technology Firms

Disruptive Innovation
Knowledge Center

Best Practices
Don Smith, USA

Strategic Options for Old-Technology Firms

What should be the strategic response of old-technology firms when a promising new technology shows up? Typically firms respond by either
1. Fighting the new technology, or
2. Trying to make a transition to the new technology.
Ron Adner and Daniel C. Snow recommend a third strategic option in their article worth reading "Bold Retreat - A New Strategy for Old Technologies" in the Harvard Business Review of March 2010:
3. Bold retreat. Proactively give most of the established market to the new technology and instead pursue either a:
3a. Retrenchment to a niche of the traditional market (where the old technology has some advantage over the new technology), and/or
3b. Relocation to a new market (where the old technology has some advantage over the new technology).
Main advantages of a bold retreat strategy are that it may allow the firm to continue to make money on a smaller scale. This may give it a later option to invest in another growth opportunity. Drawbacks are the need for a significant organizational change process and a tough communication job to explain this strategy to current stakeholders.

  ernest agbenohevi
Consultant, Ghana

Strategic Options in case of Disruptive Innovations

It seems to me that NEW TECHNOLOGY FIRMS intending...

  Lee Buan Heng
Manager, Singapore

Strategic Options for Old-technology Firms

It seems we need to have strategic options to prev...

  Kirk C. Heriot
Professor, United States

Disruptive Technology?

It would seem to me that this "theory" would be co...

  Thomas Shehu, Nigeria

Strategic Options to Withstand the Technology Advancement

Change is basic in human's life, likewise technolo...

  Jim Kaiser
Entrepreneur, United States

How Do You Know the New Tech Has Legs?

Today there are many new technologies hitting the ...

  Julio Villafuerte
Student (MBA), Peru

Examples of Third Strategic Option

Do you have examples of companies that have applie...

  Jaap de Jonge
Editor, Netherlands

Examples of Companies with Bold Retreat Strategy

Clearly you have to consider old technology compan...


More on Disruptive Innovation:
Special Interest Group

Do you have a keen interest in Disruptive Innovation? Become our SIG Leader

Disruptive Innovation
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2022 12manage - The Executive Fast Track. V15.8 - Last updated: 24-6-2022. All names of their owners.