Summary of lectures of the course introduction to corporate entrepreneurship.Completed with information from the book. It is written during the year 2019/2020, updates will be posted every time. You won't miss anything.
Summary book 'Corporate Entrepreneurship' by Paul Burns - 1ZSUC0 Organizing Entrepreneurship TU/e
All for this textbook (2)
Written for
Tilburg University (UVT)
Bedrijfseconomie
Introduction to Corporate Entrepreneurship
All documents for this subject (6)
6
reviews
By: menjvankaam • 3 year ago
By: sanderteller • 3 year ago
By: bramreumkens • 5 year ago
By: leonardosanvitale • 5 year ago
By: Lisavanstraalen • 5 year ago
By: frederiquemelis1 • 5 year ago
Seller
Follow
piet2000
Reviews received
Content preview
Lecture 1 Setting up the playground: Innovator’s Dilemma
There are also many failures in corporate entrepreneurship, but they don’t talk about failures a lot
because it’s easier to talk about successes.
Sometimes don’t only project fails, but also entire companies fail.
The fall of Nokia
Nokia was world market leader in 2007, but in 2014 they shrunked dramatically in its market share
and is passed by Samsung and Apple. This happens to many large firms, not only Nokia.
Corporate entrepreneurship is not easy, it is way more complex.
Large firms missing the boat
Typologies of technological change:
• Old vs. new (Cooper and Schendel, 1976)
• Competence-enhancing vs. competence-destroying (Tushman and Anderson, 1986)
• Incremental vs. radical (Utterback, 1994)
• Sustaining vs. disruptive (Christensen and Bower, 1996)
It is especially the latter types of change (sustaining vs. disruptive innovation) that large established
firms have difficulties coping with.
Big business do sustaining innovation. The disrupter (disruptive innovation) takes over the market.
Disruptive innovation
You see that even the leaders are threatened, although they have established positions.
,Why? The Success Syndrome
Is inertia always bad?
• Inertia may result from accountability and reliability.
Challenge:
• How to protect the traditional successful business and to engage in radical innovation at the
same time?
How can you possibly look at the past and in the future at the same time?
Innovator’s Dilemma
According to clayton Christensen:
failure to adapt to disruptive innovation is not the result of bad management, but a result of good
management.
Innovator’s Dilemma
• Large companies depend on their existing customers and investors for resources.
• They listen closely to these customers and investors and kill ideas for which there is little
need.
Disruptive technologies typically have (at least initially):
• Lower profit margins
• Small markets
• No reliable market statistics
, Lecture 2 Disruptive innovation
Recap from lecture 1
• Many companies: unprepared for disruptive innovations, even if these companies have been
world market leaders.
➔ As a result, these companies lose their competitive advantage and market position.
• Why successful companies, even market leaders, are unprepared for disruptive innovation?
➔ The Success Syndrome
Established companies tend to focus on their existing products (since they are
successful), and develop new features but not new products. They stick to their strategy
because it is successful, but they focus on their existing clients and existing products →
they overlook a market (of small companies). However, smaller companies develop the
same product for a lower price.
➔ The main challenge facing innovative companies is the Innovator’s Dilemma.
The Innovator’s Dilemma is closely related to the Success Syndrome. Companies that are
established innovators and established market leaders are facing dilemma’s when
making decisions about new products or innovations.
The existing innovators/companies are only looking at the upper end of the market and
overlook/don’t serve the lower end of the market. Then newcomers are entering and are
going to serve the lower end of the market. Therefore is the result that the established
big companies are unprepared for disruptive innovation.
Competitive advantage
• It’s crucially important for each company if they want to develop and maintain a competitive
position in the market, they need to develop competitive advantage. It’s a central strategic
task for every company.
Competitive advantage is something that:
• makes the company unique;
• is difficult to imitate by competitors;
• distinguishes the company in the market from its competitors (Porter, 1985).
Is it easy to develop a competitive advantage in the current business landscape?
➔ No, the most difficult component is to be not difficult to imitate by competitors.
➔ It’s also hard to make a company really unique.
➔ Even if a company invests a lot of money and is the first one, they really need a lot of
money to create a competitive advantage.
The current business landscape is more dynamic and competitive than 10 years ago due to internet
and the technological business environment. Companies are facing competitors all around the world
(not only in your own country).
Creating products and innovations is nowadays way more complex. Its nowadays more about the
electronics, 20 years ago was it only the ‘hardware part’ (example washing machine).
• Companies create competitive advantage by offering better and greater value to their
customers.
How?
➔ 3 generic strategies.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller piet2000. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.24. You're not tied to anything after your purchase.
