This document discusses factors that determine whether innovating firms or followers benefit more from innovations. It provides the example of EMI, which developed the first CAT scanner but lost market leadership within 6 years as followers modified and improved the design. The key factors discussed are the appropriability regime, the emergence of a dominant design, and ownership of complementary assets needed for commercialization. In a weak appropriability regime, innovators must closely monitor the market and be prepared to modify their design before a dominant one emerges to maintain competitive advantage over followers.
The document analyzes the Chinese fireworks industry and whether to invest in it. It summarizes the history and development of fireworks in China. It then performs a PEST analysis, identifies internal and external factors using IFE and EFE matrices, and analyzes industry competition using Porter's Five Forces model. The recommendations are to invest in high quality production, hire skilled workers, invest in technology/R&D, provide training, protect intellectual property, and influence pricing policy.
Eli Lilly and Company needs to decide on the type of manufacturing facility to build for new pharmaceutical products. Three options are considered: specialized, flexible, or hybrid facilities. A hybrid facility that uses flexible manufacturing initially and specialized facilities later for high demand products is recommended. This allows for reduced lead times early on while minimizing costs through specialized high utilization facilities later.
The document discusses a case involving ITT Automotive's development of a new generation antilock brake system (ABS) called the MK 20. Senior management favors using a highly automated single production process across four plants, but US plant managers prefer less automation for flexibility.
There are benefits to automation like lower costs and higher quality, but it reduces flexibility for customization and continuous improvement. While standardization improves efficiency, differences across plants in costs and customers should be considered. Plant managers may resist loss of flexibility, so their concerns around automation stagnating processes need to be addressed. Overall options chosen should fit ITT's strategy of reducing costs for popular affordable ABS systems.
Apple historically had competitive advantages in vertical integration, easy to use interfaces, and innovation enhancing consumers' digital lives. However, Apple struggled in the PC industry due to wanting full control rather than open systems and poor integration with Windows. While the iPod succeeded due to its design, interface, and iTunes model, the iPhone combined music, phone, and internet capabilities along with a large app store. However, competitors now mimic Apple's designs and operating systems, so Apple must find new advantages to gain market share in PCs, MP3 players, and smartphones. The iPad still has solid long-term prospects if Apple focuses on research, development, and leading in emerging areas like cloud services and integrated home devices.
Crocs is a footwear company known for its colorful, lightweight and breathable clogs made of Croslite material. It grew rapidly due to its innovative and highly flexible supply chain model that allowed retailers to place smaller pre-orders and reorder within seasons. Crocs core competencies include its supply chain flexibility and responsiveness, ownership of Croslite material production, and experienced management. It can further exploit these competencies through vertical integration, strategic acquisitions of other footwear brands, and expanding its product lines. Potential alternatives for growth include further vertical integration, acquisitions, and product line extensions.
This document summarizes Signode's position in the steel and plastic strapping market. It states that Signode is the market leader but has seen its market share decline from 50% to 40% in recent years. Over half of its packaging division revenue comes from steel strapping, with plastic strapping making up the other portion. Competitors have been undercutting Signode's prices by 5-10%, putting pressure on its market share and profits. The document evaluates three alternatives to address these challenges and recommends implementing flexible pricing to be more competitive while maintaining profitability and market share in the long run.
TiVo allows users to pause, rewind and record live TV and faces challenges in gaining widespread adoption. The document analyzes TiVo's business model and competitive threats. It recommends that TiVo lower prices to attract mainstream consumers, emphasize the pause and recording features in stores, and partner with TV providers to boost exposure and sales.
Crown Cork & Seal experienced financial problems in the 1950s leading to bankruptcy but was turned around by John Connelly in 1957 through modernization and restructuring. In the late 1980s, the company pursued acquisitions and international expansion, purchasing Continental Can's operations and expanding into plastics and new markets globally. By the 1990s, Crown Cork & Seal was the largest metal container supplier through restructuring and strategic acquisitions under CEO William Avery.
The document analyzes the Chinese fireworks industry and whether to invest in it. It summarizes the history and development of fireworks in China. It then performs a PEST analysis, identifies internal and external factors using IFE and EFE matrices, and analyzes industry competition using Porter's Five Forces model. The recommendations are to invest in high quality production, hire skilled workers, invest in technology/R&D, provide training, protect intellectual property, and influence pricing policy.
Eli Lilly and Company needs to decide on the type of manufacturing facility to build for new pharmaceutical products. Three options are considered: specialized, flexible, or hybrid facilities. A hybrid facility that uses flexible manufacturing initially and specialized facilities later for high demand products is recommended. This allows for reduced lead times early on while minimizing costs through specialized high utilization facilities later.
The document discusses a case involving ITT Automotive's development of a new generation antilock brake system (ABS) called the MK 20. Senior management favors using a highly automated single production process across four plants, but US plant managers prefer less automation for flexibility.
There are benefits to automation like lower costs and higher quality, but it reduces flexibility for customization and continuous improvement. While standardization improves efficiency, differences across plants in costs and customers should be considered. Plant managers may resist loss of flexibility, so their concerns around automation stagnating processes need to be addressed. Overall options chosen should fit ITT's strategy of reducing costs for popular affordable ABS systems.
Apple historically had competitive advantages in vertical integration, easy to use interfaces, and innovation enhancing consumers' digital lives. However, Apple struggled in the PC industry due to wanting full control rather than open systems and poor integration with Windows. While the iPod succeeded due to its design, interface, and iTunes model, the iPhone combined music, phone, and internet capabilities along with a large app store. However, competitors now mimic Apple's designs and operating systems, so Apple must find new advantages to gain market share in PCs, MP3 players, and smartphones. The iPad still has solid long-term prospects if Apple focuses on research, development, and leading in emerging areas like cloud services and integrated home devices.
Crocs is a footwear company known for its colorful, lightweight and breathable clogs made of Croslite material. It grew rapidly due to its innovative and highly flexible supply chain model that allowed retailers to place smaller pre-orders and reorder within seasons. Crocs core competencies include its supply chain flexibility and responsiveness, ownership of Croslite material production, and experienced management. It can further exploit these competencies through vertical integration, strategic acquisitions of other footwear brands, and expanding its product lines. Potential alternatives for growth include further vertical integration, acquisitions, and product line extensions.
This document summarizes Signode's position in the steel and plastic strapping market. It states that Signode is the market leader but has seen its market share decline from 50% to 40% in recent years. Over half of its packaging division revenue comes from steel strapping, with plastic strapping making up the other portion. Competitors have been undercutting Signode's prices by 5-10%, putting pressure on its market share and profits. The document evaluates three alternatives to address these challenges and recommends implementing flexible pricing to be more competitive while maintaining profitability and market share in the long run.
TiVo allows users to pause, rewind and record live TV and faces challenges in gaining widespread adoption. The document analyzes TiVo's business model and competitive threats. It recommends that TiVo lower prices to attract mainstream consumers, emphasize the pause and recording features in stores, and partner with TV providers to boost exposure and sales.
Crown Cork & Seal experienced financial problems in the 1950s leading to bankruptcy but was turned around by John Connelly in 1957 through modernization and restructuring. In the late 1980s, the company pursued acquisitions and international expansion, purchasing Continental Can's operations and expanding into plastics and new markets globally. By the 1990s, Crown Cork & Seal was the largest metal container supplier through restructuring and strategic acquisitions under CEO William Avery.
This document contains a SWOT analysis and PEST analysis of JetBlue Airways operations strategy prior to 2005. It discusses how JetBlue was the first airline to offer various in-flight amenities. The document also compares the economics of JetBlue's E190 and A320 fleets, noting the E190 has higher costs per seat mile but also higher revenue. It agrees with JetBlue's decision to add the E190 to complement its existing A320 fleet. Finally, it recommends JetBlue slow fleet growth across both aircraft types to maintain a balanced fleet.
Apple INC.: Managing a Global Supply ChainAyesha Majid
As part of her analysis of Apple’s stock, she wanted to look at the company’s supply chain to see if she could gain some insight into the pros and cons of Apple as a key holding in BXE’s fund. When. Apple Computer was founded on April 1, 1976, by Steve Jobs, Steve Wozniak and Mike Markkula to manufacture and distribute desktop computers.
Disruptive Innovation describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors.
The document provides background information on Crown Cork & Seal in 1989. It discusses the metal container industry structure, trends towards in-house manufacturing, plastics, glass, and aluminum cans. It also profiles Crown Cork & Seal's history, challenges under new leadership, competitors, and recommendations for entering plastics and acquiring Continental Can. Analysis includes a SWOT analysis, 5 forces analysis, value chain analysis, and corporate, business, and functional strategies.
Group G is comprised of 5 members with their student IDs listed. The document then summarizes Porter's five forces model and analyzes each force as it applies to an industry:
1. Risk of entry is affected by brand loyalty, economies of scale, and government regulations that make entering difficult.
2. Rivalry depends on industry structure, demand conditions, and exit barriers that keep competitors in the market.
3. Buyer power is greatest when there are few buyers and many suppliers, and buyers can play suppliers against each other.
4. Supplier power is highest when suppliers' products are differentiated and important to the industry.
5. Substitute threats are stronger when substitutes are
The document discusses Dell's direct sales model and competitive strategy. It summarizes Dell's history and growth founded on direct sales to customers. It analyzes Dell's competitors who struggled to copy the direct model. The document also reviews Dell's market share, competitive strengths, and provides recommendations to expand products, markets, and diversify through acquisitions for long-term growth.
This document discusses Crown Cork & Seal's strategy and growth from 1989 to 2013. It began as a metal container manufacturer but diversified into plastics and other packaging through acquisitions. Major acquisitions included Continental Can's European business in 1990, Constar plastic container business in 1992, and CarnaudMetalbox in 1996, making it the world's largest packaging company. The company innovated new product lines, grew its international presence through acquisitions, and increased sales from $1.8 billion to $8.5 billion from 1988 to 2012. However, it faced threats from substitutes like plastic and glass.
Business simulation game a new path to management education (v 1.2)Ganesh S
This document summarizes business simulation games offered by Campus Levers to provide experiential learning. It describes 11 games that simulate different business functions and teach skills like strategy, marketing, finance, operations and change management. The games can be used at various experience levels and industries. They integrate concepts like demand forecasting, pricing, and cash flow management to give participants real-world business decision making practice.
- GolfLogix was founded in 1999 to use GPS technology to help golfers track distances and record progress around a golf course using a handheld device called an xCaddie.
- The xCaddie could indicate distances to greens and allow golfers to download data after a round for a printout mapping their progress.
- GolfLogix hoped selling these systems along with distributors would help support the company's operating expenses and growth plans.
The document discusses Eli Lilly's joint venture strategy in India with Ranbaxy Laboratories Ltd. Some key points:
1) Eli Lilly and Ranbaxy formed a 50-50 joint venture in 1992 called Eli Lilly Ranbaxy to take advantage of opportunities in the growing Indian market.
2) The JV allowed Lilly to gain access to Ranbaxy's distribution network and production facilities in India while Ranbaxy benefited from Lilly's technical expertise and training programs.
3) The JV performed well by launching new products, focusing on therapeutic areas of Lilly's strength, and adding value to Ranbaxy's existing products. Cultural fit and clear governance structures contributed to the J
The document discusses the economics of the US carbonated soft drink industry from 1970 to 2004, focusing on how Coca-Cola and PepsiCo came to dominate the market through establishing production and distribution networks as well as engaging in competitive marketing campaigns. It analyzes the strategies employed by Coca-Cola and PepsiCo that allowed them to gain and maintain market share over smaller brands, such as expanding their product portfolios and establishing international presences.
The document discusses how IT starts as a strategic advantage but eventually becomes a commodity as its adoption increases. It argues that early adoption of proprietary IT provides benefits, but once standards are established, IT no longer provides competitive advantages and instead firms should focus on risk management and reducing IT costs. The key points are that IT shifts from a potential strategic resource to a commodity factor as its functions become universally available and affordable, and that overspending on IT poses greater risks than opportunities once widespread adoption makes IT essential but no longer differentiated.
The document provides an analysis of what a customer would be willing to pay for an 11.5-inch cushion pad produced by Curled Metal Incorporated. It examines two case studies of construction companies, determining that based on time and cost savings, the maximum each customer would be willing to pay is $500 and $1200, respectively. Taking the average, the maximum price is estimated to be $850. It also estimates the potential market size for these cushion pads to be between 174,000-234,000 pads, worth $147.9-198.9 million. Initial marketing strategy should use incentive-based push model to establish the brand, transitioning later to a pull model once demand is generated.
Presentation based on Harvard Business Review article: "What is Disruptive Innovation?", by Clayton M. Cristensen, Michael E. Raynor, and Rory McDonald – December, 2015 issue.
The theory of disruptive Innovation was introduced in the article: "Disruptive Technologies: Catching the Wave", by Joseph L. Bower and Clayton M. Christensen from the HBR january–february 1995 issue.
The document discusses diversity in the workplace and different paradigms for managing diversity. It outlines three paradigms: 1) the discrimination and fairness paradigm which focuses on assimilation, 2) the access and legitimacy paradigm which focuses on differentiation, and 3) the learning and effectiveness paradigm which focuses on integration. It argues the third paradigm is emerging as it recognizes how employees' perspectives can inform an organization's work. The document also notes challenges to diversity in Indian workplaces from differences in religion, language, caste, culture and more. It concludes that company leaders play a critical role in facilitating open discussion and ensuring diversity initiatives focus on learning over security.
Everything about Apple Inc is the talk of the town. IT research firm Gartner ranks Apple Supply Chain as the best supply chain in the world for 5 years in a row. Without any doubt, Apple Inc is the world leader in Innovation, Branding and Software Ecosystem. But, is Apple's Supply Chain really the number 1? Take a look at this to know more!
Honda faced several challenges in transferring its resources and capabilities to the US. It would be difficult and costly to replicate its skilled workforce and lean supplier network. While Honda had strong manufacturing capabilities, it lacked experience in US marketing, distribution, and developing business partnerships. Forming a strategic alliance could help address these gaps, but came with risks of sharing sensitive information and potential future competition. Overall, expanding internationally significantly increased complexity and uncertainties around coordination, stakeholder relationships, regulatory compliance, and maintaining Honda's competitive advantages in a new environment.
Cumberland Metal Industries is launching a new curled metal cushion pad to replace asbestos pads used in pile driving. The curled steel pad absorbs shock and heat, improving efficiency. It is safer, longer-lasting, and recyclable compared to asbestos pads. Architectural and consulting firms designing concrete pile projects are the target market. A value pricing model sets the price at $359.79 per pad, which is higher than asbestos but results in overall job savings from reduced changeovers and liability. Marketing will include trade shows, ads, webinars, and partnerships to promote the product's benefits over asbestos. The goal is to gain market share as the superior alternative cushion pad.
This document provides information about Philips and Matsushita (later Panasonic). It discusses how Philips became a leading consumer electronics company through building national organizations around the world and focusing on innovation. However, it struggled with high costs as it outsourced more manufacturing. Matsushita surpassed Philips by producing low-cost, high-quality standardized products and being a fast follower. Both companies struggled with changing their cultures and structures as international companies.
The document discusses SOLAIR AUTOMOTIVE, a modified Stirling engine car air conditioning compressor that uses exhaust heat and refrigerant gas as the working fluid. It would be a joint venture between three major German automakers. The compressor would take the AC load off the car engine, improving fuel economy. It has the potential to equip over 70 million new cars annually sold globally. The technology is based on proven Stirling engines and is protected by an existing patent.
TheKVM is a technology consulting firm that performs strategic technology scouting, product development, business development, and market entry activities. It has partnerships with research organizations and startups that give it access to over 7500 innovations. Some of its successfully commercialized technologies include a nano-polymer additive, an emission-reducing combustion catalyst, and a UV-resistant coating. TheKVM's services include helping clients develop new products, raise funds, enter new markets, and stay ahead of competitors through technology acquisitions. It differs from other consultancies by directly commercializing new technologies to generate revenue for clients.
This document contains a SWOT analysis and PEST analysis of JetBlue Airways operations strategy prior to 2005. It discusses how JetBlue was the first airline to offer various in-flight amenities. The document also compares the economics of JetBlue's E190 and A320 fleets, noting the E190 has higher costs per seat mile but also higher revenue. It agrees with JetBlue's decision to add the E190 to complement its existing A320 fleet. Finally, it recommends JetBlue slow fleet growth across both aircraft types to maintain a balanced fleet.
Apple INC.: Managing a Global Supply ChainAyesha Majid
As part of her analysis of Apple’s stock, she wanted to look at the company’s supply chain to see if she could gain some insight into the pros and cons of Apple as a key holding in BXE’s fund. When. Apple Computer was founded on April 1, 1976, by Steve Jobs, Steve Wozniak and Mike Markkula to manufacture and distribute desktop computers.
Disruptive Innovation describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors.
The document provides background information on Crown Cork & Seal in 1989. It discusses the metal container industry structure, trends towards in-house manufacturing, plastics, glass, and aluminum cans. It also profiles Crown Cork & Seal's history, challenges under new leadership, competitors, and recommendations for entering plastics and acquiring Continental Can. Analysis includes a SWOT analysis, 5 forces analysis, value chain analysis, and corporate, business, and functional strategies.
Group G is comprised of 5 members with their student IDs listed. The document then summarizes Porter's five forces model and analyzes each force as it applies to an industry:
1. Risk of entry is affected by brand loyalty, economies of scale, and government regulations that make entering difficult.
2. Rivalry depends on industry structure, demand conditions, and exit barriers that keep competitors in the market.
3. Buyer power is greatest when there are few buyers and many suppliers, and buyers can play suppliers against each other.
4. Supplier power is highest when suppliers' products are differentiated and important to the industry.
5. Substitute threats are stronger when substitutes are
The document discusses Dell's direct sales model and competitive strategy. It summarizes Dell's history and growth founded on direct sales to customers. It analyzes Dell's competitors who struggled to copy the direct model. The document also reviews Dell's market share, competitive strengths, and provides recommendations to expand products, markets, and diversify through acquisitions for long-term growth.
This document discusses Crown Cork & Seal's strategy and growth from 1989 to 2013. It began as a metal container manufacturer but diversified into plastics and other packaging through acquisitions. Major acquisitions included Continental Can's European business in 1990, Constar plastic container business in 1992, and CarnaudMetalbox in 1996, making it the world's largest packaging company. The company innovated new product lines, grew its international presence through acquisitions, and increased sales from $1.8 billion to $8.5 billion from 1988 to 2012. However, it faced threats from substitutes like plastic and glass.
Business simulation game a new path to management education (v 1.2)Ganesh S
This document summarizes business simulation games offered by Campus Levers to provide experiential learning. It describes 11 games that simulate different business functions and teach skills like strategy, marketing, finance, operations and change management. The games can be used at various experience levels and industries. They integrate concepts like demand forecasting, pricing, and cash flow management to give participants real-world business decision making practice.
- GolfLogix was founded in 1999 to use GPS technology to help golfers track distances and record progress around a golf course using a handheld device called an xCaddie.
- The xCaddie could indicate distances to greens and allow golfers to download data after a round for a printout mapping their progress.
- GolfLogix hoped selling these systems along with distributors would help support the company's operating expenses and growth plans.
The document discusses Eli Lilly's joint venture strategy in India with Ranbaxy Laboratories Ltd. Some key points:
1) Eli Lilly and Ranbaxy formed a 50-50 joint venture in 1992 called Eli Lilly Ranbaxy to take advantage of opportunities in the growing Indian market.
2) The JV allowed Lilly to gain access to Ranbaxy's distribution network and production facilities in India while Ranbaxy benefited from Lilly's technical expertise and training programs.
3) The JV performed well by launching new products, focusing on therapeutic areas of Lilly's strength, and adding value to Ranbaxy's existing products. Cultural fit and clear governance structures contributed to the J
The document discusses the economics of the US carbonated soft drink industry from 1970 to 2004, focusing on how Coca-Cola and PepsiCo came to dominate the market through establishing production and distribution networks as well as engaging in competitive marketing campaigns. It analyzes the strategies employed by Coca-Cola and PepsiCo that allowed them to gain and maintain market share over smaller brands, such as expanding their product portfolios and establishing international presences.
The document discusses how IT starts as a strategic advantage but eventually becomes a commodity as its adoption increases. It argues that early adoption of proprietary IT provides benefits, but once standards are established, IT no longer provides competitive advantages and instead firms should focus on risk management and reducing IT costs. The key points are that IT shifts from a potential strategic resource to a commodity factor as its functions become universally available and affordable, and that overspending on IT poses greater risks than opportunities once widespread adoption makes IT essential but no longer differentiated.
The document provides an analysis of what a customer would be willing to pay for an 11.5-inch cushion pad produced by Curled Metal Incorporated. It examines two case studies of construction companies, determining that based on time and cost savings, the maximum each customer would be willing to pay is $500 and $1200, respectively. Taking the average, the maximum price is estimated to be $850. It also estimates the potential market size for these cushion pads to be between 174,000-234,000 pads, worth $147.9-198.9 million. Initial marketing strategy should use incentive-based push model to establish the brand, transitioning later to a pull model once demand is generated.
Presentation based on Harvard Business Review article: "What is Disruptive Innovation?", by Clayton M. Cristensen, Michael E. Raynor, and Rory McDonald – December, 2015 issue.
The theory of disruptive Innovation was introduced in the article: "Disruptive Technologies: Catching the Wave", by Joseph L. Bower and Clayton M. Christensen from the HBR january–february 1995 issue.
The document discusses diversity in the workplace and different paradigms for managing diversity. It outlines three paradigms: 1) the discrimination and fairness paradigm which focuses on assimilation, 2) the access and legitimacy paradigm which focuses on differentiation, and 3) the learning and effectiveness paradigm which focuses on integration. It argues the third paradigm is emerging as it recognizes how employees' perspectives can inform an organization's work. The document also notes challenges to diversity in Indian workplaces from differences in religion, language, caste, culture and more. It concludes that company leaders play a critical role in facilitating open discussion and ensuring diversity initiatives focus on learning over security.
Everything about Apple Inc is the talk of the town. IT research firm Gartner ranks Apple Supply Chain as the best supply chain in the world for 5 years in a row. Without any doubt, Apple Inc is the world leader in Innovation, Branding and Software Ecosystem. But, is Apple's Supply Chain really the number 1? Take a look at this to know more!
Honda faced several challenges in transferring its resources and capabilities to the US. It would be difficult and costly to replicate its skilled workforce and lean supplier network. While Honda had strong manufacturing capabilities, it lacked experience in US marketing, distribution, and developing business partnerships. Forming a strategic alliance could help address these gaps, but came with risks of sharing sensitive information and potential future competition. Overall, expanding internationally significantly increased complexity and uncertainties around coordination, stakeholder relationships, regulatory compliance, and maintaining Honda's competitive advantages in a new environment.
Cumberland Metal Industries is launching a new curled metal cushion pad to replace asbestos pads used in pile driving. The curled steel pad absorbs shock and heat, improving efficiency. It is safer, longer-lasting, and recyclable compared to asbestos pads. Architectural and consulting firms designing concrete pile projects are the target market. A value pricing model sets the price at $359.79 per pad, which is higher than asbestos but results in overall job savings from reduced changeovers and liability. Marketing will include trade shows, ads, webinars, and partnerships to promote the product's benefits over asbestos. The goal is to gain market share as the superior alternative cushion pad.
This document provides information about Philips and Matsushita (later Panasonic). It discusses how Philips became a leading consumer electronics company through building national organizations around the world and focusing on innovation. However, it struggled with high costs as it outsourced more manufacturing. Matsushita surpassed Philips by producing low-cost, high-quality standardized products and being a fast follower. Both companies struggled with changing their cultures and structures as international companies.
The document discusses SOLAIR AUTOMOTIVE, a modified Stirling engine car air conditioning compressor that uses exhaust heat and refrigerant gas as the working fluid. It would be a joint venture between three major German automakers. The compressor would take the AC load off the car engine, improving fuel economy. It has the potential to equip over 70 million new cars annually sold globally. The technology is based on proven Stirling engines and is protected by an existing patent.
TheKVM is a technology consulting firm that performs strategic technology scouting, product development, business development, and market entry activities. It has partnerships with research organizations and startups that give it access to over 7500 innovations. Some of its successfully commercialized technologies include a nano-polymer additive, an emission-reducing combustion catalyst, and a UV-resistant coating. TheKVM's services include helping clients develop new products, raise funds, enter new markets, and stay ahead of competitors through technology acquisitions. It differs from other consultancies by directly commercializing new technologies to generate revenue for clients.
Technological innovation is now a key driver of competition for many firms. The document discusses several chapters about the importance and sources of innovation. Chapter 1 notes that innovation fosters economic and social benefits but may also create negatives. Chapter 2 outlines various sources of innovation, including individual inventors, users, research collaborations, and government efforts. Chapter 3 describes different types of innovation and typical patterns of technological change and adoption over time.
Reference : Schilling, Melissa A. 2017. Strategic Management Of Technological Innovation. New York : McGraw-Hill Education.
http://sif.uin-suska.ac.id/
http://uin-suska.ac.id/
There are several barriers that can prevent firms from entering or leaving markets. Barriers to entry include economies of scale, brand loyalty, control of important technologies, expertise and reputation. Strategic entry deterrence by existing firms includes hostile takeovers, product differentiation, capacity expansions, and predatory pricing. Patents provide monopoly power but can also stifle competition. Innovation is both a barrier, through property rights, and an enabler, by reducing barriers. Process innovation lowers costs. Established firms have cost advantages from learning, integration, customer retention, and monopsony power. Legal barriers include licenses, patents, franchises, and import controls.
This document discusses strategies for managing technology and innovation, specifically regarding customization, speed, knowhow, and time pacing. It provides examples of how companies like Toyota, Dell, and Motorola quickly customize and deliver products to customers. It also discusses how standardization strategies can enable customization through approaches like part, process, and product standardization. The development of the video cassette recorder industry is presented as a case study showing the stages of competition for industry foresight, shortening migration paths, and market position.
The document discusses monetizing patents and identifies characteristics of successful monetized patents based on case studies. It provides the TiVo patent as a case study, which was monetized through licensing and litigation settlements totaling nearly $1 billion. The monetizing DNA of the TiVo patent includes solving an important technological problem, providing unique customer value, being integrated into platforms, and having strong legal protections against invalidation challenges.
Chapter 3 types and patterns of innovationMuhammad Anang
The path a technology follows through time is termed its technology trajectory. Technology trajectories are most often used to represent the technology’s rate of performance improvement or its rate of adoption in the marketplace.
This document summarizes a project involving replacing a legacy ERP system with SAP and either using internal resources or outsourcing parts of the project. Key lessons included clarifying roles and responsibilities to avoid issues, taking a phased approach to implementation to control risks, and ensuring adequate resources and budgets were allocated. Outsourcing parts of large IT projects can generate new business opportunities but also risks if not properly managed.
This document discusses how open source communities can effectively do standardization. It addresses some challenges open source communities face in standardization, including unclear customer requirements, fast innovation cycles misaligned with industry cadence, and differences between coding and standardization processes. It provides principles for open source standardization, such as being customer-centric and identifying requirements early, and leveraging existing standards where possible rather than duplicating efforts. The overall goal of standardization for open source is to help unlock the business value of open source technologies for customers.
This document discusses different types and patterns of innovation. It notes that innovation can be categorized as product vs process, radical vs incremental, competence-enhancing vs competence-destroying, and architectural vs component. It also discusses how the performance and adoption of new technologies typically follows an S-curve pattern over time. Finally, it outlines how technological change often follows a cyclical pattern from an initial discontinuity to a period of exploration, emergence of a dominant design, and incremental improvements before the next discontinuity.
The document summarizes three models related to innovation:
1) The S-Curve model describes the introduction, growth, and maturation of innovations as well as technological cycles within industries. It involves early stages of large investment and small improvements followed by more rapid progress as knowledge accumulates.
2) The Teece Model explains that imitability and complementary assets determine profits from innovation. Imitability refers to how easily competitors can copy a technology. Complementary assets like distribution channels are also important.
3) The Abernathy-Utterback Model outlines three phases - fluid, transitional, and specific. The fluid phase involves experimentation, the transitional phase sees standardization and a dominant design emerge, and the
Essential of Technology Entrep. & Innovation- Chapter three critical factors...Motaz Agamawi
In chapter three, we are discussing the critical factors of management of technology.
This course provide the students with a conceptual knowledge regarding the essentials for management practices of a technology-based organization, and the evolution of technology. The topics covered in this course would include: • Introduction to the concept of entrepreneurship. • What entrepreneurs do and their importance to economy • How to seize business opportunity; • Know the process of creativity and difference between invention and innovation • Know how innovation is important as a dimension of entrepreneurship • Critical factors in managing technology; including • The Time Factor (Osborn effect) • Technology Push and Market Pull • The S-Curve of Technology • Technology and Product Life Cycle • The Chain Equation of Technology Innovation • Price Knowledge Gape Relation • Difference between Entrepreneurship and Stewardship Management • Difference between technology leader and followers • Competition and Competitiveness Concepts. • The process of the technological innovation; • Who are the customers; and • How to optimize cost and find finance for your projects • Demonstrate the importance of business plan, including the marketing and financial plans and how to prepare it. • Know the structure and management of a technology organization
Profiting from innovation in the digital economy teece 2018James Cracknell
David Teece's 1986 seminal work' Profiting from Innovation' set out a framework highly relevant to trhe industrial age but not so specific to address the digital landscape of today. The 2018 version has just done that. These are notes and musings from reading the paper, extracting valuable insight into IP and appropriations that protect. IOt also addresses the issues of how we reward the inventor in a permiable society,
mHealth Israel_Patent Strategy: Disruptive vs Incremental InnovationLevi Shapiro
Presentation by Roy Melzer, Head of Software Department, Ehrlich & Fenster, for the mHealth Israel community, Feb 8, 2017. IP strategy based on diversification and portfolio theory, combining incremental and disruptive innovation.
In the 1960s, Stanley Milgram addressed a number of letters to a friend of his, a stockbroker in Boston. Milgram then distributed these letters to a random selection of people in Nebraska. He instructed the individuals to pass the letters to the addressee by sending them to a person they knew on a first-name basis who seemed in some way closer (socially, geographically, etc.) to the stockbroker. This person would then do the same, until the letters reached their final destination
The document discusses technology exports and joint ventures. It provides details on different types of technology exports, including transfers of intellectual property rights and licensing agreements. It also outlines the objectives and needs for technology exports, such as earning royalties and accessing technical knowledge. Joint ventures are described as strategic partnerships between two or more companies, where they share resources to achieve common goals. Successful factors for joint ventures include partner selection, access to financing, adopting modern practices, and technology transfers. Examples provided include the Shanghai BOC industrial gases joint venture and the Sony-Ericsson mobile phone partnership.
The document discusses the advantages and disadvantages of being a first mover when introducing a new technology to the market. Some key first mover advantages include gaining brand loyalty, preempting scarce resources, and benefiting from network effects. However, first movers also face higher R&D costs, uncertainty over customer preferences, and immature supply chains. The optimal timing of market entry depends on factors like the size of the technology's advantage, the maturity of complementary goods, and the threat of competition. Later entrants can capitalize on the efforts of first movers while avoiding some of their risks.
1. Integrated Strategic Patent Management
2. The Monetizing Patent’s DNA: How to identify and develop the monetizing patents
3. Internet of Things (IoT) Patent Monetization New Business Model
4. Internet of Things (IoT) Strategic Patent R&D for New Value Creation
5. Evaluation of Monetized Patents for the Internet of Things (IoT) Connectivity Standards
6. Increasing Monetization Activities Exploiting LTE Patents
7. How much will Apple need to pay to Ericsson for a reasonable licensing royalty of 4G LTE patents?
8. Internet of Things (IoT) M&A Target Candidates Insights from Patents
9. Apple’s Strategic Alignment in Patent and M&A
10. Alcatel-Lucent acquisition by Nokia would provide leadership in Mobile based IoT innovation
11. Investment for Patent Monetization
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Profiting from technological innovation
1. PROFITING FROM TECHNOLOGICAL INNOVATION
IMPLICATIONS FOR INTEGRATION, COLLABORATION, LICENSING AND PUBLIC POLICY BY DAVID J.
TEECE
Maryam Behnam, Amir Salimi Dr. Bagheri
2. WHAT ARE WE TALKING ABOUT?
• This paper attempts to explain why innovating firms often fail to
obtain significant economic returns from an innovation, while
customers, imitators and other industry participants benefit.
3. WHAT ARE WE TALKING ABOUT?
• In this paper, a framework is offered which identifies the factors
which determine who wins from innovation: the firm which is
first to market, follower firms, or firms that have related
capabilities that the innovator needs.
5. 5
The EMI CAT case
The EMI CAT scanner is a classic case of
the phenomenon to be investigated. By
the early 1970s, the UK firm Electrical
Musical Industries (EMI) Ltd. was in a
variety of product lines including
phonographic records, movies, and
advanced electronics. EMI had developed
high resolution TVs in the 1930s and
pioneered airborne radar during World
War II.
An EMI senior research engineer
engaged in pattern recognition research
which resulted in his displaying a scan of
a pig's brain.
6. 6
Computerized axial tomography (CAT)
was viable for generating cross-
sectional "views" of the human body,
the greatest advance in radiology
since the discovery of X rays in 1895.
While EMI was initially successful with
its CAT scanner, within 6 years of its
introduction into the US in 1973 the
company had lost market leader- ship,
and by the eighth year had dropped
out of the CT scanner business.
The EMI CAT case
8. PROFITING FROM INNOVATION: BASIC
BUILDING BLOCKS
The appropriability regime
The dominant design paradigm
Complementary assets
9. REGIMES OF APPROPRIABILITY
A regime of appropriability refers to the environmental factors,
excluding firm and market structure. The most important dimensions
of such a regime are the nature of the technology, and the efficacy
of legal mechanisms of protection.
It has long been known
that patents do not work
in practice as they do in
theory.
10. REGIMES OF APPROPRIABILITY
Often patents provide little protection because the legal
requirements for upholding their validity or for proving their
infringement are high.
In some industries, particularly where the innovation is embedded in
processes, trade secrets are a viable alternative to patents.
The degree to which knowledge is tacit or codified also affects
ease of imitation.
11. REGIMES OF APPROPRIABILITY
The property rights environment can thus be classified according to
the nature of the technology and the efficacy of the legal system to
assign and protect intellectual property.
12. THE DOMINANT DESIGN PARADIGM
It is commonly recognized that there are two stages in the
evolutionary development of a given branch of a science: the
preparadigmatic stage and the paradigmatic stage
These "standards" remain in force unless or until the paradigm is
overturned.
13. THE DOMINANT DESIGN PARADIGM
In the early stages of industry development, product designs are
fluid, manufacturing processes are loosely and adaptively
organized, and generalized capital is used in production.
The preparadigmatic stage where the competition amongst firms
manifests itself in competition amongst designs
14. THE DOMINANT DESIGN PARADIGM
At some point in time one design or a narrow class of designs
begins to emerge as the more promising.
The Model T Ford, the IBM 360, and the Douglas DC-3
Once a dominant design emerges, competition shifts to price and
away from design.
Innovation is not necessarily halted once the dominant design
emerges.
16. THE DOMINANT DESIGN PARADIGM
When dominant design emerges, the innovator might well end up
positioned disadvantageously relative to a follower. Hence, when
imitation is possible and occurs coupled with design modification
before the emergence of a dominant design, followers have a good
chance of having their modified product anointed as the industry
standard, often to the great disadvantage of the innovator.
17. COMPLEMENTARY ASSETS
In almost all cases, the successful commercialization of an
innovation requires that the know-how in question be utilized in
conjunction with other capabilities or assets.
19. COMPLEMENTARY ASSETS
Generic assets are general purpose assets which do not need to be
tailored to the innovation in question.
Specialized assets are those where there is unilateral dependence
between the innovation and the complementary asset.
Cospecialized assets are those for which there is a bilateral
dependence.
20. COMPLEMENTARY ASSETS
Examples of generic assets:
*the manufacturing facilities
Examples of specialized assets depending on the innovation:
* Embedded DVD-players in PC's
*The cottage industry of accessories made for the iPod media device.
Examples of co-specialized assets (innovation and asset depend on
each other)
* Strong biotechnology patents and the marketing and distribution
resources of the large pharmaceuticals.
22. TIGHT APPROPRIABILITY REGIMES
Even if the innovator does not possess the desirable endowment of
complementary costs, protection of intellectual property will afford
the innovator the time to access these assets.
If, however, the complementary assets are specialized or
cospecialized, contractual relationships are exposed to hazards,
because one or both parties will have to commit capital to certain
irreversible investments which will be valueless if the relationship
between innovator and licensee breaks down.
23. TIGHT APPROPRIABILITY REGIMES
If the innovator comes to market in the preparadigmatic phase
with a sound product concept but the wrong design, a tight
appropriability regime will afford the innovator the time needed to
perform the trials needed to get the design right.
If the innovator possesses an impenetrable thicket of patents, or
has technology which is simply difficult to copy, then the market
may well afford the innovator the necessary time to ascertain the
right design before being eclipsed by imitators.
24. WEAK APPROPRIABILITY
Tight appropriability is the exception rather than the rule.
Accordingly, innovators must turn to business strategy if they are to
keep imitators/ followers at bay.
25. WEAK APPROPRIABILITY
PREPARADIGMATIC PHASE
In the preparadigmatic phase, the innovator must be careful to let
the basic design "float" until sufficient evidence has accumulated
that a design has been delivered which is likely to become the
industry standard.
26. The early history of the
automobile industry exemplifies
exceedingly well the importance
for subsequent success of
selecting the right design in the
preparadigmatic stages. None of
the early producers of steam
cars survived the early shakeout
when the closed body internal
combustion engine automobile
emerged as the dominant
design.
27. WEAK APPROPRIABILITY
PREPARADIGMATIC PHASE
As a general principle, it appears that innovators in weak
appropriability regimes need to be intimately coupled to the
market so that user needs can fully impact designs.
Hence, the probability that an innovator will enter the paradigmatic
phase possessing the dominant design is problematic.
The probabilities will be higher the lower the relative cost of
prototyping,
and the more tightly coupled the firm is to the market.
28. WEAK APPROPRIABILITY
PARADIGMATIC STAGE
As the leading design or designs begin to be revealed by the
market, volumes increase and opportunities for economies of scale
will induce firms to begin gearing up for mass production by
acquiring specialized tooling and equipment, and possibly
specialized distribution as well.
29. WEAK APPROPRIABILITY
PARADIGMATIC STAGE
As the terms of competition begin to change, and prices become
increasingly unimportant, access to complementary assets becomes
absolutely critical.
Specialized assets, involve significant irreversibilities and cannot be
easily accessed by contract, as the risks are significant for the party
making the dedicated investment.
31. CHANNEL STRATEGY ISSUES
It is now necessary to delve deeper into the appropriate control
structure that the innovator ideally ought to establish over these
critical assets.
At one extreme, the innovator could integrate into all of the
necessary complementary assets, as illustrated in fig. 7, or just a few
of them, as illustrated in fig. 8.
32.
33. CHANNEL STRATEGY ISSUES
At the other extreme, the innovator could attempt to access these
assets through straightforward contractual relationships.
34. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
The advantages of a contractual solution are obvious.
The innovator will not have to make the upfront capital
expenditures needed to build or buy the assets in question.
35. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Chemical and petrochemical product innovations are not quite so
easy to protect, which should raise new challenges to innovating
firms in the developed nations as they attempt to shift out of
commodity petrochemicals.
37. Cipher Case
Cipher Data Products, Inc. contracted
with IBM to develop a low-priced
version of IBM's 3480 0.5 inch
streaming cartridge drive, which is
likely to become the industry
standard.
As Cipher management points out,
"one of the biggest advantages to
dealing with IBM is that, once you've
created a product that meets the high
quality standards necessary to sell
into the IBM world, you can sell into
any arena." 37
38. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
It is most important to recognize, however, that strategic
(contractual) partnering, is exposed to certain hazards, particularly
for the innovator.
It may be difficult to induce suppliers to make costly irreversible
commitments which depend for their success on the success of the
innovation.
39. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
The arrangement appears to have been prudent, yet there were
clearly hazards for both sides.
It is difficult to write, execute, and enforce complex development
contracts, particularly when the design of the new product is still
"floating."
40. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Briefly, there is the risk that the partner won't perform according
to the innovator's perception; there is the added danger that the
partner may imitate the innovator's technology.
However, that contractual or partnering strategies in certain cases
are ideal.
41. CHANNEL STRATEGY ISSUES
CONTRACTUAL MODES
Even if the partner fails to perform, adequate alternatives exist (by
assumption, the partners' capacities are commonly available) so the
innovator's efforts to successfully commercialize its technology
ought to proceed profitably.
43. CHANNEL STRATEGY ISSUES
INTEGRATION VERSUS CONTRACT STRATEGIES." SUMMARY”
The difficult strategic decisions arise in situations where the
appropriability regime is weak and where specialized assets are
critical to profitable commercialization.
44.
45. CHANNEL STRATEGY ISSUES
INTEGRATION VERSUS CONTRACT STRATEGIES." SUMMARY”
Even when firms pursue the optimal strategy, other industry
participants may take the jackpot. This possibility is unlikely when
the intellectual property in question is tightly protected. The only
serious threat to the innovator is where a specialized complementary
asset is completely "locked up,"
47. CHANNEL STRATEGY ISSUES
MIXED MODES
Decisions to integrate or-license involve trade-offs, compromises,
and mixed approaches. It is not surprising therefore that the real
world is characterized by mixed modes of organization, involving
judicious blends of integration and contracting. Sometimes mixed
modes represent transitional phases.
48. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
IME and CAT scanner
49. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
IBM computers
50. CHANNEL STRATEGY ISSUES
THE CA T SCANNER, THE IBM PC, AND NUTRA- SWEET." INSIGHTS FI"OM
THE FRAMEWORK
NutraSweet(Searle)
51. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
ALLOCATING R &D RESOURCES
The strategies which the firm must follow to maximize its share of
industry profits relative to imitators and other competitors. There is
no guarantee of success even if optimal strategies are followed.
The innovator can improve its total return to R&D, however, by
adjusting its R&D investment portfolio to maximize the probability
that technological discoveries will emerge that are either easy to
protect with existing intellectual property law, or which require for
commercialization cospecialized assets already within the firm's
repertoire of capabilities.
52. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
SMALL FIRM VERSUS LARGE FIRM COMPARISONS
Business commentators often remark that many small entrepreneurial
firms which generate new, commercially valuable technology fail
while large multinational firms, often with a less meritorious record
with respect to innovation, survive and prosper.
53. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
REGIMES OF APPROPRIABILITY AND INDUSTRY STRUCTURE
In industries where legal methods of protection are effective, or
where new products are just hard to copy, the strategic necessity for
innovating firms to integrate into cospecialized assets would appear to
be less compelling than in industries where legal protection is weak.
54. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
INDUSTRY MATURITY, NEW ENTRY, AND HISTORY
Incumbents will for sure own the cospecialized assets, and new
entrants will find it necessary to forge links with them. Here lies the
explanation for the sudden surge in "strategic partnering" now
occurring internationally, and particularly in the computer and
telecommunications industry
55. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE
POLICY
THE IMPORTANCE OF MANUFACTURING TO INTERNATIONAL
COMPETITIVENESS
An important policy for the innovating nation is whether the
identity of the firms and nations performing this function matter.
In a world of tight appropriability and zero transactions cost - the
world of neoclassical trade theory - it is a matter of indifference
whether an innovating firm has an in-house manufacturing capability,
domestic or foreign.
56. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
HOW TRADE AND INVESTMENT BARRIERS CAN IMPACT INNOVATORS' PROFITS
when an innovating firm generating profits needs to access
complementary assets abroad, host governments, by limiting access,
can sometimes milk the innovators for a share of the profits,
particularly that portion which originates from sales in the host
country.
57. IMPLICATIONS FOR R&D STRATEGY, INDUSTRY STRUCTURE, AND TRADE POLICY
IMPLICATIONS FOR THE INTERNATIONAL DISTRIBUTION OF THE BENEFITS
FROM INNOVATION
Iinnovators who do not have access to the relevant specialized and
cospecialized assets may end up ceding profits to imitators and other
competitors, or simply to the owners of the specialized or cospecialized
assets.
Integration, which by definition involves ownership, is distinguished from pure contractual modes in that it typically facilitates incentive alignment and control. If an innovator owns rather than rents the complementary assets needed to commercialize, then it is in a position to capture spillover benefits stemming from increased demand for the complementary assets caused by the innovation.
However, in industries experiencing rapid technological change, technologies advance so rapidly that it is unlikely that a single company has the full range of expertise needed to bring advanced products to market in a timely and cost effective fashion. Hence, the integration issue is not just a small firm issue.
These situations, which in reality are very common, require that a fine-grained competitor analysis be part of the innovator's strategic assessment of its opportunities and threats. This is carried a step further in fig. 11, which looks only at situations where commercialization requires certain specialized capabilities. It indicates the appropriate
strategies for the innovators and predicts the outcomes to be expected for the various players.
The vertical axis: how those who possess the technology (the innovator or imitators) are positioned vis ~ vis those firms that possess required specialized assets
The horizontal axis: the "tightness" of the appropriability regime, tight regimes being evidence by iron clad legal protection coupled with technology that is simply difficult to copy;
For instance, because of the convergence of computer and telecommunication technology, firms in each industry are discovering that they often lack the requisite technical capabilities in the other. Since the technological interdependence of the two requires collaboration amongst those who design different parts of the system,
intense cross-boundary coordination and information flows are required. When separate enterprises are involved, agreement must be reached on complex protocol issues amongst parties who see their interests differently. Contractual difficulties can be anticipated since the selection of common technical protocols amongst the parties will often be followed by transaction-specific investments in hardware and software. There is little doubt that this was the motivation behind IBM's purchase of 15 percent of PBX manufacturer Rolm in 1983, a position that was expanded to 100 percent in 1984. IBM's stake in Intel, which began with a 12 percent purchase in 1982, is most probably not a transitional phase leading to 100 percent purchase, because both companies realized that the two corporate cultures are not very compatible, and IBM may not be as impressed with Intel's technology as it once was.
EMI's failure to reap significant returns from the CAT scanner can be explained in large measure by reference to the concepts developed above. The scanner which EMI developed was of a technical sophistication much higher than would normally be found in a hospital, requiring a high level of training, support, and servicing. EMI had none of these capabilities, could not easily contract for them, and was slow to realize their importance. It most probably could have formed a partnership with a company like Siemens to access the requisite capabilities.
Technicare - GEGodfrey Houndsfield
The IBM PC, introduced in 1981, was a success despite the fact that the architecture was ordinary and the components standard. Philip Estridge's design team in Boca Raton, Florida, decided to use existing technology to produce a solid, reliable micro rather than state of the art. With a one-year mandate to develop a PC, Estridge's team could do little else. However, the IBM PC did use what at the time was a new 16-bit microprocessor (the Intel 8088) and a new disk operating system (DOS) adapted for IBM by Microsoft. Other than the microprocessor and the operating system, the IBM PC incorporated existing micro "standards" and used off-the-shelf parts from outside vendors. IBM did write its own BIOS (Basic Input/output System) which is embedded in ROM, but this was a relatively straightforward programming exercise.
In 1982, Searle reported combined sales of $74 million for NutraSweet and its table top version, Equal. In 1983, this surged to $336 million. In 1985, NutraSweet sales exceeded $700 million 9 and Equal had captured 50 percent of the U.S. sugar substitute market and was number one in five other countries.
Put differently, if an innovating firm does not target its R&D resources towards new products and processes which it can commercialize advantageously relative to potential imitators and/or followers, then it is unlikely to profit from its investment in R&D.
In cases where legal protection is weak or nonexistent, the control of cospecialized assets will be needed for long-run survival.
In industries in which technological change of a particular kind has occurred, which required deployment of specialized and/or cospecialized assets at the time, a configuration of firm boundaries may well have arisen which no longer has compelling efficiencies. Considerations which once dictated integration may no longer hold, yet there may not be strong forces leading to divestiture. Hence existing firm boundaries may in some industries - especially those where the technological trajectory and attendent specialized asset requirements has changed - be rather fragile. In short, history matters in terms of understanding the structure of the modern business enterprise. Existing firm boundaries cannot always be assumed to have obvious rationales in terms of today's requirements.
Even when the specialized assets are possessed by the innovating firm, they may be located abroad.