2. The ineffective quest for market share
Case: 200 largest US corporations
Average 5.5% Market growth
annual
top line
growth
8.6%
3.0% M&A activity
0.1% Market share increases
Overall Sources of
growth rate growth
Source: Baghai, Smit & Vigurie, 2007
case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case •
2
5. Radical innovation destroys existing products and creates new
customer value – against customer research and expert advice
case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case •
5
6. Radical innovation destroys existing products and creates new
customer value – against customer research and expert advice
case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case •
6
7. Radical innovation destroys existing products and creates new
customer value – against customer research and expert advice
case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case •
7
8. Radical innovation destroys existing products and creates new
customer value – against customer research and expert advice
case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case •
8
12. Planning or action?
Successful entrepreneurs go for the effectual process
Predictive, traditional business planning
Conduct
competitive
Identify and analysis Acquire
opportunity resources and Adapt to the
for a new Develop a stakeholders environment
product / firm business plan needed to as it changes
/ market implement the over time
Conduct plan
market
research
Effectual business planning
More resources New
means
Assess
means: What can I Interact with Obtain partner
Who am I? do? people I know commitments
What I know? and meet
Who I know?
New
Less contraints goals
New firms, products, and markets
12 Source: Read et al. (2009)