Thursday, November 26, 2015

Enter at your own risk

It is counterintuitive to think that companies that fail to thrive are hindered by good management rather than by poor management. Generally, when you ask someone why a firm failed, one of the first responses would be to blame the leadership for their lack of skill.
                However, as the introduction to Why Good Companies Fail to Thrive in Fast-Moving Industries points out, good management  can be a burden when dealing with the idea of disruptive technology – innovations that result in worse product performance rather than better performance.  The author states that while good management will want to guide their firm towards items that provide the best returns, it is wise to be situationally minded when determining the best time and methods in which to pursue producing potentially disruptive innovations.  No amount of good management can stave off failure without a proper strategy.
                Ideally, a firm wants to be a leader in sustaining technologies, which make product performance better. During the course of research, the author pointed out that very rarely was a company brought down by investing in sustaining technologies.
                This idea corresponds well with the blue ocean strategy article, which deals with becoming the big fish an uncontested market, rather than fighting tooth and nail in the highly competitive marketplace.  So long as a manager knows how to recognize the best means of harnessing the ideas of disruptive technologies, then countless blue oceans are available for their company to thrive in.

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