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[This chapter presents an archetype of confrontations that highlights the distinctive perspective of an outsider. In this archetype insider refers to an established leading firm in a specific market, while outsiders are startups or historical nonparticipants in the insider’s market. The chapter interprets events as a conflict between the outsider’s novel point of view and the insider’s established point of view. To support this interpretation, the chapter examines numerous illustrations involving prominent firms, such as Microsoft, IBM, Britannica, Intel, Apple, Dell, and others, and events related to the determination of technological leadership in a market. The chapter stresses the factors that ease entry, such as perceptions of sclerotic behavior from an insider, and the origins of the outsider that lead to surprises. The chapter also examines the factors that lead insiders to imitate outsiders by quickly changing their plans (or not) and by quickly altering their investment priorities (or not). The discussion stresses the mechanisms that slow down response and potentially reduce the seeming advantages of incumbency.]
Published: Jan 2, 2020
Keywords: Creative destruction; Value creation; Cognitive frames; Disruption; Technological competition; Commercialization; Insiders; Outsiders
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