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Game-Changing Strategies explains the reasons behind this puzzle and presents practical ideas on how established firms could not only discover new radical business models but also grow them next to their existing business models. The challenge for established firms is not the discovery of a new business model?the real challenge is how to make two business models coexist. This book offers advice on how established firms can implement structures and processes that make the new business model less conflicting and more palatable to the existing business.
- Sales Rank: #733855 in eBooks
- Published on: 2013-01-03
- Released on: 2013-01-03
- Format: Kindle eBook
From the Inside Flap
Game-Changing Strategies
Companies that develop new radical business models in established industries—and in the process, break the rules of the game in those industries—can enlarge the market and create enormous value for themselves. Just consider companies such as Amazon, Starbucks, IKEA, and Dell.
While everybody agrees with this idea, few seem to appreciate that the majority of new business-model innovations are introduced by newcomers in an industry. Established firms appreciate the need to break the rules as much as start-up firms. They also possess many more resources, skills, and technologies to do so effectively. Yet they continue to allow new firms to take the initiative when it comes to business-model innovation. The question is why?
Game-Changing Strategies explains the reasons behind this puzzle and presents practical ideas on how established firms can not only discover radical new business models but also grow them next to their existing business models. The challenge for established firms is not the discovery of a new business model—the real challenge is how to make two business models coexist. This book offers advice on how established firms can implement structures and processes that make the new business model less conflicting and more palatable to the existing business.
The book also examines the incentives that drive established firms to pioneer new radical business models in their industries and describes how they can do it. In addition, it explores the challenge of responding to the invasion of a new business model and examines the various response options available to established companies. Game-Changing Strategies cautions that even though business-model innovation is difficult for established firms, they still must approach it in a proactive manner.
From the Back Cover
Praise for Game-Changing Strategies
"This is the most exciting book I have read in years! Clearly written and crammed with interesting ideas that are brought to life with real-company examples, Game-Changing Strategies will change the way managers approach strategy-making in their organizations. Should be required reading for top executives and anyone interested in business-model innovation."
—Peter Schou, founder and former CEO, Lån & Spar Bank A/S, Denmark; administrator and director, Lån & Spar Fond
"Costas Markides really understands what it takes to innovate in a large corporation. This clear-eyed analysis cuts through the complexity that has muddied our understanding of strategic innovation, then does what so few other books on the topic have done: it provides practical guidance on how to implement the change. Academics will admire it for the powerful concepts, but executives will devour it for the practical insights. This is not a book for the corporate library; it belongs on the desk of any serious manager—and within easy reach."
—Christopher A. Bartlett, Thomas Casserly Professor of Business Administration, Emeritus, Harvard Business School
"Business-model innovations can change the rules of an industry and unlock enormous sources of new value. Yet many companies find changing their business model a hazardous and sometimes fatal journey. Game-Changing Strategies provides a fresh and insightful perspective on how companies can navigate this journey successfully and profit from business-model change. Based on a decade of research and filled with real-world examples, the book shows how managers of both established and entrepreneurial companies can change, and raise, their game."
—Eric D. Beinhocker, author, The Origin of Wealth
"By emphasizing the organizational challenges of implementing radical new business models, Game-Changing Strategies provides a useful road map to companies that aspire to innovate in their business model. I thoroughly recommend this book to those courageous enough to consider breaking the rules in their industries."
—Mark Price, managing director, Waitrose, United Kingdom
About the Author
Constantinos Markides is professor of Strategic and International Management and holds the Robert P. Bauman Chair of Strategic Leadership at the London Business School. He is also the chairman of the Strategic and International Management (SIM) Department at LBS. He is the author or coauthor of six other books including All the Right Moves, Strategic Thinking for the Next Economy, The Future of the Multinational Company, and Fast Second.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Not impressed
By Jackal
Not a very impressive book from a good, down-to-earth thinker. The book is a loose collection of new chapters and articles. It is full of very old and over-analysed cases. The source material seems to be Harvard Business School case studies and maybe a few additions by the author. The examples are very tired if you read management books.
At time there are interesting nuggets in the book. Like you need to decide what type of creativity/innovation your organisation should accomplish. It is not just about being more creative/innovative. Good and valid point. However, at many time the thinking is rather loose. An upmarket daycare center is taken as an example. Very high prices but the employer pays. Later in the book the author states that his game-changing strategies (also called business model innovation in the book) always increase the size of the market with a rather large factor. So how is the daycare center fitting the definition? The book is full of such inconsistencies which I find quite irritating.
Give this book a pass.
3 of 3 people found the following review helpful.
No, this is not more of the same!
By A. Michaelides
Readers 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.
1 of 1 people found the following review helpful.
Excellent book on competitive strategy
By MSG
This book provides a thoughtful discussion about how large, incumbent firms can strategically innovate and simultaneously manage two business models to sustain competitive advantages over new entrants. Markides is one of the leading strategy scholars of our time and this new book is relevant for both practicing senior managers as well as those teaching strategy courses. There are many practical examples and a clear explanation of how to implement the ideas. A must read!
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