lesson 1 Flashcards
because of first mover advantages and disadvantages,
competitive advantage can spring from when a move is made as well as what move is made
what leads to first mover advantage?
- when a first mover can set the technical standard for the industry
- when pioneering helps build a firm’s reputation and creates strong brand loyalty
- when a first mover’s costumers will thereafter face switching costs
what leads to late mover advantage?
- when pioneering is more costly than imitating
- when products of an innovator don’t lead up to customer expectations
- when rapid market evolution allows fast followers to leap frog a first mover’s products with more attractive next version products
what does blue ocean strategy offer?
growth in revenues by discovering or inventing new industry segments that create new demand
the business universe is divided into what?
an existing market with boundaries and rules in which rival firms compete for advantage
what is a blue ocean market space?
the industry has not yet taken shape, there are no rivals and there is wide open long-term growth and profit potential
characteristics of a blue ocean market space
- uncontested market space
- make the competition irrelevant
- create and capture new demand
the risky business of going against the grain
creative destruction
the art and science of recognizing original ideas
blind and one-eyed inventors
speaking truth to power
out on a limb
timing, strategic procrastination, and first-mover advantages
fools rush in
creating and maintaining coalitions
Goldilocks and the trojan horse
how siblings, parents, and mentors nurture originality
rebel with a cause
the myths of strong cultures, cults, and devil’s advocates
rethinking groupthink
managing anxiety, apathy, ambivalence, and anger
rocking the boat and keeping it steady
