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INNOVATION STRATEGY - Coggle Diagram
INNOVATION STRATEGY
Divestment/de-merger
= ‘Breaking-up’ a business
Business is no longer part of core business
Aim to free up managerial resources and provide clearer focus
Recognition of new opportunities requiring managerial attention/focus
Provide a better technological focus
Factors leading to use of external routes to Innovation
lack of knowledge
poor fit with company strategy
lack of resources
lack of reach
Forms of Spin-off
Company flotation via an initial public offering (IPO)
Management buy-out (MBO) where the company is sold to its managers
Sale to venture capitalist (VC) organisation, who will invest in expectation of later harvest
Sale to another company
HIERARCHY OF STRATEGIES
functional strategy
business strategy
product strategy
Key aspects of Innovation Strategy
Whether to enter a market?
When to enter a market?
Where to enter a market?
Cesaroni’s 3 factors for Licensing
Lack of complementary assets in production & marketing
Transaction costs of licencing are lower than purchasing complementary assets
Intense competition in the final product market
Innovation Strategies (external & internal)