L4

Innovation Strategy

A coherent strategy that leverages a firm's existing competitive position and guides future development.

Exploration

The pursuit of new knowledge, characterized by long-term, uncertain returns and diverse experiences.

Exploitation

Utilizing and developing existing competencies for short-term, certain returns.

Core Competencies

Integrated abilities that distinguish a firm in the marketplace, making it hard for competitors to imitate.

Dynamic Capabilities

Abilities that allow a firm to quickly reconfigure and adapt its resources and structures in response to market changes.

Porter's Five Forces

A model that analyzes five competitive forces to determine the attractiveness of an industry.

Complementors

Entities that depend on but do not control the product, enhancing its value (e.g., app developers for platforms).

Ambidexterity

The ability to simultaneously explore new opportunities while exploiting existing capabilities.

Stakeholder Analysis

An outside-in approach that evaluates the interests and contributions of various stakeholders to the business.

Resource-Based View (RBV)

A perspective that focuses on a firm's resources as the key to achieving competitive advantage.

S-curve

A graphical representation of the growth of performance or a technology over time, showing phases of rapid growth and eventual saturation.

Core Rigidities

When core competencies become obstacles to change and adaptation, hindering innovation.

Incremental Innovation

Gradual improvements on existing products, requiring exploitative learning.

Market Dynamics

The changes and fluctuations in market conditions, often requiring firms to adapt their strategies and capabilities.

Organizational Learning

A framework that describes how organizations utilize both exploitation and exploration to foster innovation.

Bargaining Power of Buyers

The influence customers have on the pricing and quality of a business's offerings.

Threat of Substitutes

Alternative products that fulfill the same needs as a business's products, impacting customer choices.

Resource

A tangible or intangible asset owned or controlled by a firm that contributes to its strategic goals.

Viability

The ability of an organization to survive and thrive in the current market environment.

Entry Barriers

Conditions that make it difficult for new firms to enter an industry, such as high startup costs or strong brand loyalty.

Agile Development

An iterative approach to software development that emphasizes flexibility and customer collaboration.

Firm Survival

The ability of a company to continue operating over the long term amid competitive pressures.

Cognitive Barriers

Mental models or assumptions that may prevent firms from recognizing disruptive changes in their market.

Performance Measurements

Metrics used to assess a firm's success in achieving its strategic goals and objectives.