BSM 600 Lecture Notes - Lecture 4: Iphone 5, Dominant Design, Bounded Rationality
18 Feb 2017
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Can be de novo (startups) or ? (established biz set up baby firms) Est set up skunk works = away from the original, because existing routines will interfere. Politics prevent established firms from innovation, ergo skunk. Skunk works no interactions with est, separate, so new things can happen. A lot of new firms leave industry. Doing ok, but growth stage requires lots of work and resources, marketing, constant process innovation = difficult. Lots of consolidation - get bought out by big fish = fewer firms. Max amount of profits to be made (highest sales in maturity, though. Lots of firms at the growth stage try to move on - they don"t stay to mature and decline, but you"re moving on to something new immediately. Don"t stay on to harvest max sales because makes sense to constantly try to do something new, keep growing, not keep maturing.
