Search results

In a dynamic environment where underlying competition is “for the market,” this chapter examines what happens when entrants and incumbents can instead negotiate for the market. For instance, this might arise when an entrant innovator can choose to license to or be acquired by an incumbent firm (i.e., engage in cooperative commercialization). It is demonstrated that, depending upon the level of firms’ potential dynamic capabilities, there may or may not be gains to trade between incumbents and entrants in a cumulative innovation environment; that is, entrants may not be adequately compensated for losses in future innovative potential. This stands in contrast to static analyses that overwhelmingly identify positive gains to trade from such cooperation.

Board meeting was in full swing as an important announcement had been made by Manish Jain, MD FinMen Advisors Pvt. Ltd. ‘We need to get 5,000 clients by 2023’. Management board members look at each other in wonder as they have only 500 clients in 2018. ‘That's a herculean task’, says a board member, ‘Besides, the clients’ fees are reducing in our business'. Manish interrupts to suggest that it is precisely the reason they want to enhance their client base. But the board members were still not convinced. Their questions revolved around whether they are equipped enough in terms of resources and infrastructure to reach to the number suggested by Manish. There were issues in the processes and systems of the company, there were issues in employees taking onus of leading certain verticals in the company, there were no branding exercise in terms of increasing awareness about the company. On the whole, in order to reach 5,000 clients, a total revamp of processes, systems and training employees needed to be given huge emphasis. But does the company have money for revamping all these issues? ‘I don't care’, says Manish, ‘Any client in any industry looking for credit ratings should be our client’. As Manish moves out of the board room, he says to himself that he was well aware of the facts questioned by the board members. But as a person ready to take up challenge and enjoy the perils of it, Manish was not ready to reconsider any of the points raised by the members. He thought whatever has to be done, has to be done to achieve targets set by him. However, sitting in his office and thinking about the future, Manish was still on the same dilemmic question as any employee in his company: how does he achieve the figure of 5,000 clients by 2023?