The Cross Boundary Disruptive Business Strategy

1466 Words Dec 6th, 2015 6 Pages
But is there a third alternative?

As you’ll see in the next section, the above two models can be difficult to achieve if the business is already established. But there could be a third strategy, which might offer more opportunities for larger corporations.

This is the cross-boundary disruptive business strategy. Former Inter CEO, Andy Grove, has argued that businesses can be disruptive also by getting involved with an entirely different industry. Since only an established business, can grow its operations beyond its initial industry, this strategy is only suitable for big corporations.

According to Grove and his research partner professor Robert Burgelman, there are certain conditions under which “a firm can create a new growth spurt
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The examples, such as Apple, are much harder to find.

But what are the obstacles big corporations face that limit their chances of disruption? The below highlights the problems larger companies are faced with.

Innovation flourishes in the start-up mentality

A start-up business is essentially built on the idea of innovation. Because the business is entering a market that is already there, the business must create a fresh idea before it can began operating. This means that start-up companies are driven by the passion to change the market.

On the other hand, innovation isn’t at the heart of a big corporation, as they have already made it, so to speak. The company has achieve a market share and its focus isn’t directed in creating new ideas, but rather making sure its existing ones are up to date.

Start-ups are also built around this single idea and since the business is not established, it can focus all of its energy in developing the idea. It has the ability to place all of its efforts in streamlining the idea, whilst a big corporation has to also focus on its day-to-day operations.

The innovative mentality is also enhanced in start-ups by the kind of staff it has. Start-ups are looking for innovations, risk-taking and people, who aren’t after the money. Since you can’t guarantee the business will hit off, the people building the business won’t be motivated by money in the same way as people working for a big corporation.

For big corporations, the key
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