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•Need to abandon assumption of continuity
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•Find ways around cultural “lock-in”
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•Corporations evolve into entities of convergent thinking
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•Discontinuity thrives on divergent thinking
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•May use private equity or venture as future models for corporations
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Cultural lock-in inability
to change corporate culture even in the face of obvious threats e.g
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For half a century Bayer
drove the growth of Sterling Drug until J&J introduced Tylenol. Out of
fear of cannibalizing it’s aspirin drug leadership it failed to introduce its
non-aspirin drug Panadol. Failure led to its acquisition by Kodak.Three great
fears:
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•Cannibalization
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•Channel conflict
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•Dilution to earnings of acquisitions
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Market doesn’t feel them so
it moves on
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