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Strategic Options for Old-Technology Firms

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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.
 

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ernest agbenohevi
Consultant, Ghana
 

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Lee Buan Heng
Manager, Singapore
 

Strategic Options for Old-technology Firms

It seems we need to have strategic options to prevent disruptive innovations in financial product, i... Sign up

 
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Kirk C. Heriot
Professor, United States
 

Disruptive Technology?

It would seem to me that this "theory" would be contingent on the strategy the firm is presently emp... Sign up

 
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Thomas Shehu, Nigeria
 

Strategic Options to Withstand the Technology Advancement

Change is basic in human's life, likewise technology change is basic in the life of companies. The b... Sign up

 
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Jim Kaiser
Entrepreneur, United States
 

How Do You Know the New Tech Has Legs?

Today there are many new technologies hitting the street - social media, cloud computing, etc. Does ... Sign up

 
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Julio Villafuerte
Student (MBA), Peru
 

Examples of Third Strategic Option

Do you have examples of companies that have applied the third strategic option recommended by Ron Ad... Sign up

 
2
Jaap de Jonge
Editor, Netherlands
 

Examples of Companies with Bold Retreat Strategy

Clearly you have to consider old technology companies to find examples of bold retreat strategies. T... Sign up

 

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More on Disruptive Innovation:
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topic Innovation Strategy: the Three Horizons of Growth (McKinsey)
topic The Jobs to be Done Approach (JTBD) and Disruptive Innovation
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topic Diversity of Perspective is Key to Disruptive Innovation
topic List of Disruptive Technologies
topic How can Incumbents (Established Corporates) Respond to Disruptors?
topic How to Develop Disruptive Innovation Skills?
topic Timing is Important to Make an Innovative Idea Disruptive
topic How to Find Innovative Ideas? From Analogous Markets...
topic Three Types of Innovation (Christensen)
topic WHAT is Being Innovated? The 4 Ps of Innovation
topic Is Disruptive Innovation Radical? is it a Breakthrough?
topic Disruptive Innovation: What Causes the Creative Leap?
topic How to Sustain Disruptive Innovation?
topic Leadership Skills / Approaches for Successful Innovation
topic Innovation Ideas in Economic Slowdowns
topic The Hybrid Innovation Approach to Technological Innovation
topic Examples of Disruptive Innovation
topic Ways to Incorporate Disruptive Innovation as Part of the Management Agenda
🔥 The Six Ds of Exponential Technologies (Diamandis)
topic The Word 'Disruptive' in Disruptive Innovation
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