Need to abandon assumption of continuity
lAge of discontinuity
lCorporations’ survival goal is continuity
nCultural “lock-in”
nEvolve into entities of convergent thinking
lDiscontinuity thrives on divergent thinking
lMay use private equity or venture as future models for corporations
Cultural lock-in inability to change corporate culture even in the face of obvious threats e.g
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:
•Cannibalization
•Channel conflict
•Dilution to earnings of acquisitions
Market doesn’t feel them so it moves on