Malnight & Buche (2022)

Question 1

What is the main argument in Malnight & Buche (2022)

Answer 1

Companies should, instead of taking a defensive position against newcomers, adopt a mindset of “strategic incumbency” and convert age, size and tradition into key advantages of trusted relationships, market power and deep insights.

Train ability to
1) manage complexity
2) maintain long term focus
3) leverage customer relationships

Question 2

What is meant with “managing complexity” in Malnight & Buche (2022)

Answer 2

Avoiding bad complexity

Leveraging good complexity

E.g., start with real customer needs and broaden service range with synergy (Unilever India example)

Question 3

What is meant with “long term focus” in Malnight & Buche (2022)

Answer 3

Always an advantage if your owners and board allow you to think long term

John Deere example: stick to strategy; continue to invest also in M&A in tech; utilise existing assets such as installed base, reputation, team up with farmers to help

Question 4

What is meant with “Expand into adjacencies via trusted customer relationships” in Malnight & Buche (2022)

Answer 4

Trust! Key CA that incumbents typically have

Eg Maersk: get rid of non-core and expand sea-based freight into land-based logistics based on customer relations

Question 5

Malnight & Buche (2022) found 5 reasons that tend to derail efforts to adopt a more attractive posture, which are they?

Answer 5

1. Denial: failiure to realise sunk costs
2. Pushing too hard and too far out peoples’ comfort zones
3. Pacing. Dont loose momentum in change.
4. Dramatically different business model require more R&A and clever CAPEX strategies and receptive boards

5.** Keep new ventures close to the core **- at least don’t turn it into innovation ghettos or obscure skunkwords