By Allan Afuah

ISBN-10: 0203883241

ISBN-13: 9780203883242

This can be a nice booklet. Be forewarned, even though, that it isn't a brief business-book-of-the-week toss off. it's a critical, educational method of the subject. the information Mr. Afuah offers are instantly usable it doesn't matter what point you're at inside an organization.

I strongly suggest this publication to an individual attempting to comprehend, or increase their realizing of company method within the glossy international.

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Extra info for Strategic Innovation: New Game Strategies for Competitive Advantage

Sample text

Thus, it is important to try to anticipate competitors’ likely reactions to one’s actions. In fact, business history suggests that many firms that ultimately made the most money from innovations were not the first to introduce the innovations. So-called followers, not first movers, won. One reason is because followers often can exploit first-mover’s disadvantages (also called followers’ advantages). However, a first mover can have three things going for it. First, it can build and exploit first-mover advantages.

Airbus’ offering of the A380 super jumbo plane falls in this category. Sometimes, new games can be a result of a hostile competitive environment. Dell’s decision to sell directly to customers rather than pass through distributors was actually because the distributors would not carry its products at the time. It was a fledgling startup and many distributors were busy selling products for the IBMs and the Compaqs. The macroenvironment is made up of the political-legal, economic, socio-cultural, technological, and natural environments (PESTN) in which firms and industries operate.

Answering these four questions constitutes an AVAC analysis. The AVAC analysis can be used to estimate the profitability potential of a strategy or the extent to which a strategy is likely to give a firm a competitive advantage. The more that the answers to these question are Yes rather than No, the more that the strategy is likely to give the firm a competitive advantage. 2 Components of a New Game Strategy. exploration of the AVAC analysis is postponed until Chapter 2, the analysis is simple and fundamental enough for us to start using it below.

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Strategic Innovation: New Game Strategies for Competitive Advantage by Allan Afuah

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