Keep Calm and Manage Disruption Harvard Case Solution & Analysis

For many, dislocation is just around the corner, and the anxiety is palpable. Several professors have challenged the accuracy of the theory of Christensen -especially, the extent to which disruptive innovations actually cause businesses in their own path to be unsuccessful. Author Joshua S. Gans concedes that disturbance is a likelihood, but he contend that the link amid disruption and failure may not be as sturdy as many supervisors believe. In particular, Gans argues that disruption can be averted. "Many companies find means of managing through it, and this can weaken any association between a disruptive event and the real dislocation," he writes. The inquiry, Gans says, is whether company confronting dislocation are able to counter its effects. Defeating Them: The first strategy includes investing aggressively in new innovations after entrants bring them to market. Although Gans says when the situation becomes clear supervisors may not know right away whether an entrant's innovation will become a danger, they must act to shield their market position.

Microsoft created a new section dedicated to defusing the Netscape danger. Joining Them: The notion here is for established businesses to "wait and see"whether a market entrant's innovation improves and becomes a competitive risk. Afterward, rather than waging war, the existing player can acquire the entrant's company and its products, therefore averting dislocation. When dislocation is upon them, Gans clarifies, incumbents recognize they will face stiffer competition later on, so they have an incentive to neutralize the danger. But there are also advantages to disrupters in preventing a lengthy period of intense competition with an established incumbent. Waiting Them Out: Gans indicates that players that are established should assess what they've that entrants lack -- entrants scarcely have every element of a value chain. Truly, he notes, sometimes incumbents are in positions of leadership precisely because they have invested in elements that are not easy to replicate. In the print business, for instance, Mergenthaler, which pioneered the Linotype machine in the 1880s, also developed more than 1,000 typefaces, which created a high hurdle for new entrants even as printing technology evolved. Under some conditions, Gans writes, "incumbents may be able to manage to wait interruption out and respond on their own timeline.”

PUBLICATION DATE: April 01, 2016 PRODUCT #: SMR550-PDF-ENG

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