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Game-Changing Strategies: How to Create New Market Space in Established Industries by Breaking the Rules (J-B US non-Franchise Leadership) ReviewReaders of business books on innovation have all been victims of the hype of doing new things and doing things differently. Of course we all know that doing new things and finding new ways of doing things can be sources of considerable value, with payoffs that go far beyond increased efficiency and continuous improvement. But simply eulogizing the companies that have made it big with a new business model (the IKEAs, Body Shops, Entreprise Rent-a-Cars and Southwest Airlines of the world) against formidable established competitors, is eye-opening but somehow insufficient.Business model innovation - how a company changes key parts of the value chain to create new space in an established industry - is the subject of Professor Markides' new book. Remarkably removed from the common hype Markides emphasizes:
1.That implementing the new business model is harder than inventing it.
2.For a start-up, business model innovation is more obvious and easier than for an established company.
3.There are more business model innovators who fail than succeed.
4.An established company that decides to run a new business model, has to simultaneously manage degrees of differentiation and integration, synergy and competition with the existing business model and different ways of managing these can be successful
5.Established firms have various strategic options when responding to disruptive competitors with new business models
6.Established firms should themselves be innovative in their business models
And much more. The book is partly based on the author's own research of a large sample of business model innovators and is full of well-known and not-so-well-known case-examples, all well-written and with business arguments clearly articulated.
Of course the author understands that innovation is impossible without creativity and he counterbalances his "Creativity is not enough" Chapter 3, with his Appendix B - "How to enhance corporate creativity".
All in all a fine business book.
Game-Changing Strategies: How to Create New Market Space in Established Industries by Breaking the Rules (J-B US non-Franchise Leadership) Overview
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