Birkinshaw (2022)

Question 1

What are the main arguments of Birkinshaw (2022) (How incumbents survive and thrive)

Answer 1

The comeback of the Incumbents. Many sectors still dominated by incumbents (483 of the Forbes 500 existed in 1995) and has therefor not been disrupted. Has four ways to respond to Disruption

Question 2

According to Birkinshaw (2022)(How incumbents survive and thrive), what are the four ways to Respond to Disruption?

Answer 2

1. Fight Back
2. Double Down
3. Retrench
4. Move away

Either way, 1) you must embrace digital technology; 2) rhetoric

Question 3

What does Birkinshaw (2022)(How incumbents survive and thrive) mean by Double Down strategy in order to respond to disruption. What are the risks and benefits?

Give an exampel

Answer 3

It is offensive and puts emphasis on existing segments and markets

Benefit: Leverage longtime assets

Risk: Market may not value those assets in the future

Example:
Disney in the 00’s focussing on their core competence, making movies, rather than distribution. Now they’re in streaming however.

Question 4

What does Birkinshaw (2022)(How incumbents survive and thrive) mean by Fight Back strategy in order to respond to disruption. What are the risks and benefits?

Give an exampel

Answer 4

It is offensive and puts Emphasis on new segments and markets
Benefits: Keep new entrants at bay
Risk: Hard to execute and easy to get the timing wrong
Example:
BA launch Go, NYT -> nytimes.com. Difficult to bear newcomers on their own turf

Question 5

What does Birkinshaw (2022)(How incumbents survive and thrive) mean by Retrench strategy in order to respond to disruption. What are the risks and benefits?

Give an exampel

Answer 5

A defensive move with emphasis on existing segments and markets
Benefits: reduce threats from new entrants through scale and lobbying
Risks: a recipie for managed decline and hard to sell to stakeholders
Example:
M&A. Seeking support from govt (e.g. taxis facing Uber and banks w credit losses)

Question 6

What does Birkinshaw (2022)(How incumbents survive and thrive) mean by Move Away strategy in order to respond to disruption. What are the risks and benefits?

Give an exampel

Answer 6

A defensive move that puts emphasis on new segments and markets
Benefits: You sieze opportunites in new markets
Risk: Diversifiation is always challenging to pull off
Example:
reapply core competences elsewhere, e.g. Fuji into healthcare