Market invasions: a game for start-ups or for established players?
Speaker: Dr. Bernard Buisson
Speaker Affiliation: IAE Paris I Panthéon-Sorbonne -Visiting Professor of Strategy (International MBA) Vienna University
Host: Professor Bruce Tidor
Host Affiliation: MIT - EECS/BE
Time: 10:00 AM - 11:00 AM (Refreshments: 9:45 AM)
His latest article (written with Philippe Silberzahn, Strategy Professor at EM Lyon) is “Market invasions: a game for established players?”. Bernard will present it to the 5th ISPIM Symposium which will take place in Seoul, from December 9th to December 12th 2012.
From time to time, a new product or service from one given company achieves significant domination. For instance, within a few years after the Google search engine was launched in 1998, the vast majority of users had switched to Google for search and the firm captured almost all of the value created by the search engine market.
These new products or services are cases of very successful innovations and when it comes to innovation, the accepted wisdom, building on the existing literature, is that start--ups have an edge over established companies and especially over incumbents. The article lists 12 cases of market invasions which were initiated by start--ups since 1900.
But there are also cases of established companies, or incumbents, which were able to achieve market invasions. The article lists 12 cases of such market invasions. One of the findings of the article is that, in 75% of these cases, the established companies were in difficult situations when they decided to launch a new product and/or did not stick to their core business model.