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- Herausgeber: Business Book Summaries
- Kategorie: Fachliteratur
- Sprache: Englisch
The must-read summary of Constantinos Markides and Paul Geroski's book: "Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets".
This complete summary of the ideas from Constantinos Markides and Paul Geroski's book "Fast Second" demonstrates that the firms which develop and pioneer radical innovations are rarely the ones that ultimately end up dominating the markets they create. In their book, the authors explain how the major profits in any markets actually tend to accrue to the established corporations which have the skills, resources and the mind-set to take niche products and scale them up into mass markets. By reading this summary, you will learn from the examples of successful fast-second companies and apply the advice on how to conquer the new markets in today's competitive environment.
Added-value of this summary:
• Save time
• Understand key concepts
• Expand your business knowledge
To learn more, read "Fast Second" and discover how you can learn from the innovation of others and conquer mass markets.
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Seitenzahl: 36
Veröffentlichungsjahr: 2013
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Book Presentation: Fast Second by Constantinos Markides and Paul Geroski
Book Abstract
About the Author
Important Note About This Ebook
Summary of Fast Second (Constantinos Markides and Paul Geroski)
1. Understand how radical markets come about in the first place
2. Anticipate the most likely ways radical markets will evolve over time
3. Employ the optimum commercial structure
Book Presentation: Fast Second by Constantinos Markides and Paul Geroski
Book Abstract
The economic benefits of the first-mover advantage have been grossly exaggerated. The companies which develop and pioneer radical innovations are rarely the ones which ultimately end up dominating the markets they create. Instead, the major profits in any market tend to accrue to the established corporations which have the skills, resources and mind-set to take niche products and scale them up into mass markets.
With this in mind, established corporations should not even try to develop radical innovations. Instead, corporations should subcontract the creation of new and radical products to start-up firms, and concentrate instead on consolidating the results generated by these start-ups. This is the strategic model already widely used in creative industries to great effect. This same business model should also be picked up on and used in many more industries.
“Henry Ford did not create the car market but the Ford company ended up capturing a lot of the value in that market in its first hundred years of existence; Procter & Gamble did not create the market for disposable diapers but it is P&G that ended up harvesting most of the value out of the mass market for disposable diapers that blossomed in the last fifty years; and General Electric did not create the CAT scanner market, yet it was GE that made most of the money out of this market. It turns out that when it comes to radical, new-to-the-world markets, the pioneers almost always lose out to latecomers.”
– Constantinos Markides and Paul Geroski
About the Author
CONSTANTINOS MARKIDES is professor of strategic and international management at the London Business School. He is the author of several books and articles including All the Right Moves and Strategic Thinking for the Next Economy.
PAUL GEROSKI was until recently professor of economics at London Business School. He is currently serving as chairman of the U.K. Competition Commission. His specialist areas of research interest are innovation, competitive strategy and competition policy.
Important Note About This Ebook
This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.
Summary of Fast Second (Constantinos Markides and Paul Geroski)
1. Understand how radical markets come about in the first place
Radical markets are new-to-the-world consumer markets which are created by the availability of new technologies or innovations. Over the past fifty years, a number of radical markets have been created and that trend is certain to continue in the future. To benefit from that knowledge, you need to first understand where new markets come from, what they look like and what it takes to succeed in them.
Innovations come in four different flavors:
Incremental – where an existing technology is improved and enhanced. Examples: introducing four-wheel drive into passenger cars or power steering or fog lights.Major – where a new technology is introduced which builds on the competencies and assets of the established companies in the marketplace. Examples: the introduction of online banking or the availability of video telephones.Strategic – where a different business model is combined with modest changes to existing products allowing customers to do new things. Examples: online brokerage, private-label consumer goods, low-cost point-to-point flying.Radical – where a new technology does two things: It introduces a new customer value proposition which is disruptive to existing customer habits and preferences.It creates a new market which undermines the assets and competencies of all existing competitors.New markets that have been created through radical innovation over the past fifty years include:
TelevisionPersonal computersPersonal digital assistantsCarsSemiconductorsMobile phonesVideo cassette recordersMedical diagnostic imaging
