![]() One example of a prominent corporation facing significant external pressure while at the same time experiencing high environmental instability is the social network giant Facebook. Furthermore, some authors have referred to BMI as a viable way for organizations to adjust to changing sources of value generation in times of high environmental instability ( Pohle and Chapman, 2006 Schneider and Spieth, 2013). The understanding of the need for a constantly changing BM has increased the scholars’ focus on business model innovation (BMI) and has led to a burgeoning in the number of academic publications devoted to the subject ( Foss and Saebi, 2017). In practical terms, researchers are increasingly identifying a company’s ability to change its BM before being forced to do so by external pressure, especially in volatile contexts, to be a critical source of competitive advantage ( Hamel and Valikangas, 2004). Nevertheless, even a well-established and currently profitable BM cannot be seen as a permanent fixture, considering the dynamic, constantly changing environment that companies face ( Chesbrough, 2010). Following their recognition as critical drivers of innovation, BMs in themselves have become a differentiation factor in the competitive landscape. At first glance, the new name and a far-reaching vision appear to be an innovation, suggesting a significant impact on the company’s overall business model (BM).īMs have developed as a critical tool for commercializing innovations by providing a framework that a company can use to create and capture value from technological developments or innovative ideas ( Chesbrough, 2010 Osterwalder et al., 2005 Teece, 2010). 193), Facebook announced a name change to “Meta” while elaborating on a new vision that entailed building up the “metaverse,” a three-dimensional space representation based on virtual and augmented reality ( Choi and Kim, 2017). On October 28, 2021, Mark Zuckerberg, the CEO of the “social network of the world” ( Read, 2013, p. Almost two decades later, this innovative entrepreneurial act appears more modern than ever in light of recent events. This was the case in 2003, representing a last-ditch effort on the part of the tobacco giant Philipp Morris after years of negative publicity highlighting unhealthy practices and fraudulent claims in a rebranding to “Altria” applied without significantly altering its business practices ( Cordasco, 2003). The full terms of this license may be seen at Ī new artificial name that arouses interest, a modern, innovation-signaling logo, and a CEO announcing that the entire business will radically change: such a combination of events may be unusual but is not unprecedented in the world of business. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. ![]() This article is published under the Creative Commons Attribution (CC BY 4.0) license. Copyright © 2022, Sascha Kraus, Dominik K.
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