The Incumbent Revenge: A Blue Ocean Failure

Véronique Ambrosini () and Taman Powell
Additional contact information
Véronique Ambrosini: Monash University
Taman Powell: University of Roehampton

Chapter Chapter 9 in Entrepreneurial Connectivity, 2021, pp 135-144 from Springer

Abstract: Abstract With this chapter we explore the relationship between incumbents and entrepreneurial newcomers in the presence of radical innovation. We frame our analysis by examining how different strategic groups leverage divergent capabilities to compete in the changing nicotine marketplace. Our argument draws on the example of the US nicotine market following the introduction of electronic cigarettes (e-cigarettes). Our primary focus is the actions of established tobacco companies and new e-cigarette companies started by entrepreneurs. While most extant studies suggest that incumbents will win in incremental innovation battles, and new entrants in radical disruptive innovation battles, we show how the incumbents emerged largely successfully in defending the industry dominant logic and their $900b global market. This raises questions as to the boundary conditions relating to value innovation and notably the impact of incumbents’ superior market positions enabled through intangible actions such as lobbying.

Keywords: Entrepreneurship; Disruptive innovation; Blue ocean strategy; E-cigarette; Tobacco (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-5572-2_9

Ordering information: This item can be ordered from
http://www.springer.com/9789811655722

DOI: 10.1007/978-981-16-5572-2_9

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().