“Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University.
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Transcript of “Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University.
![Page 1: “Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University.](https://reader037.fdocuments.us/reader037/viewer/2022110100/56649e365503460f94b2676f/html5/thumbnails/1.jpg)
“Competitive battles”Christensen
Munir MandviwallaFox School of Business
Temple University
![Page 2: “Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University.](https://reader037.fdocuments.us/reader037/viewer/2022110100/56649e365503460f94b2676f/html5/thumbnails/2.jpg)
![Page 3: “Competitive battles” Christensen Munir Mandviwalla Fox School of Business Temple University.](https://reader037.fdocuments.us/reader037/viewer/2022110100/56649e365503460f94b2676f/html5/thumbnails/3.jpg)
Companies
Consumers
Signals of change
Competitive battles
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Non-consumers / Not consuming
• Change• Simple• Increase access• Increase ability• Reduce financial barrier• Reduce skill barrier• Easily• Effectively
• Signals• Growth rate• Specific segments
(college students!)• Product or service
delivery chain• RELATIVE low price
• How• Convenience• Customization• Lower price
• Leads to: New market disruptive innovation
Undershot
• Change• Incremental• More radical
• Signals• Consumer frustration• Negative reviews• Willingness to pay higher
prices• Prosperity of niche
integrators• Specialists struggle
• How – existing customers• Performance - Reliability• Performance -
Functionality• Integration - need it for
radical• Compatibility• Interoperability• Legacy
• Leads to: Sustaining up-market (radical or incremental innovation)
Overshot
• Change• Basis for competition• Make the product “less
good”• Commoditize
• Signals• Decreasing prices over
time (refusal to pay for more)
• Features not used• Complaints about
‘complicated’• How• Value chain• Convenience• Customization• Low prices
• Ease of use (flexible and convenience, customizability, price)
• Leads to• Low-end disruptions (convenience/price)
• Specialists displace integrated players (need modularity)
• Standards based competition
Signals of change
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Source: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.2.
Law of gravity (profit)Move up-market
Serve more profitable customers who are willing to
pay higher
Low - cost
Differentiation
The cycle continues
Incumbents
New firms
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Resources (do they have or can they
get)
Processes(are they any
good)
Values (Can they seize the
opportunity)
How do you analyze the above?
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1. Entrants enter behind a shield of asymmetric motivation; early incumbent response leads to cramming
2. Entrants grow and improve; incumbents chose flight
3. Entrants utilize the sword of asymmetric skills
The sword and the shield
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