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Strategy for Entering a New Business Segment: How a high-tech company can leverage and adapt its business model and ecosystem in a new market.

Ehrenberg, Cornelia and Mittel, Oliver (2017) MIO920
Production Management
Abstract
Problem Description:
Entering a new business segment introduces numerous challenges for a high-tech company. New product
development processes, even when well-managed, have a high expected failure rate and
commercialisation is costly. High-tech markets are volatile, fast-moving and uncertain with a short
window of opportunity for introducing and establishing new products. Strategy research does not offer a
complete view of the challenges a company can face in a new business segment as the link between the
external market, the internal company and surrounding ecosystem is seldom explored. This thesis
expands the borders of strategy uniting two streams of research: the marketing paradigm and the resource
based view. The thesis... (More)
Problem Description:
Entering a new business segment introduces numerous challenges for a high-tech company. New product
development processes, even when well-managed, have a high expected failure rate and
commercialisation is costly. High-tech markets are volatile, fast-moving and uncertain with a short
window of opportunity for introducing and establishing new products. Strategy research does not offer a
complete view of the challenges a company can face in a new business segment as the link between the
external market, the internal company and surrounding ecosystem is seldom explored. This thesis
expands the borders of strategy uniting two streams of research: the marketing paradigm and the resource
based view. The thesis expands boundaries of strategy further by including the elements of business
models and ecosystems.
Research Question:
How can a high-technology company leverage and adapt its business model when entering a new business
segment?
Purpose:
The purpose of this thesis is to develop a strategic process enabling a company to adapt and leverage its
current business model and ecosystem to a new business segment.
Methodology:
The thesis identifies the key streams of strategy research and picks out the various elements relevant to
the situation a company may face when entering a new business segment. The identified elements are
mapped out in the Entering a New Business Segment (ENBS) model. The model is applied to a case
study consisting of a high-tech company entering the audio market for retail and contrasted to two
historical cases of the same company’s entry into new business segments.
Conclusions:
The design and application of the ENBS model to the case study yielded several strategic
recommendations to the case company on how to proceed in the new business segment. On a more
general level the thesis study provided the basis for the development of an ENBS process which acts as a
guide for a company when entering a new business segment. The process consists of five steps and
highlights the goals and challenges involved in each step. (Less)
Please use this url to cite or link to this publication:
author
Ehrenberg, Cornelia and Mittel, Oliver
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Business model, business ecosystem, resource based view, marketing paradigm, demand side perspective, market entry.
other publication id
17/5576
language
English
id
8919175
date added to LUP
2017-06-27 15:39:42
date last changed
2018-03-19 09:14:17
@misc{8919175,
  abstract     = {Problem Description:
Entering a new business segment introduces numerous challenges for a high-tech company. New product
development processes, even when well-managed, have a high expected failure rate and
commercialisation is costly. High-tech markets are volatile, fast-moving and uncertain with a short
window of opportunity for introducing and establishing new products. Strategy research does not offer a
complete view of the challenges a company can face in a new business segment as the link between the
external market, the internal company and surrounding ecosystem is seldom explored. This thesis
expands the borders of strategy uniting two streams of research: the marketing paradigm and the resource
based view. The thesis expands boundaries of strategy further by including the elements of business
models and ecosystems.
Research Question:
How can a high-technology company leverage and adapt its business model when entering a new business
segment?
Purpose:
The purpose of this thesis is to develop a strategic process enabling a company to adapt and leverage its
current business model and ecosystem to a new business segment.
Methodology:
The thesis identifies the key streams of strategy research and picks out the various elements relevant to
the situation a company may face when entering a new business segment. The identified elements are
mapped out in the Entering a New Business Segment (ENBS) model. The model is applied to a case
study consisting of a high-tech company entering the audio market for retail and contrasted to two
historical cases of the same company’s entry into new business segments.
Conclusions:
The design and application of the ENBS model to the case study yielded several strategic
recommendations to the case company on how to proceed in the new business segment. On a more
general level the thesis study provided the basis for the development of an ENBS process which acts as a
guide for a company when entering a new business segment. The process consists of five steps and
highlights the goals and challenges involved in each step.},
  author       = {Ehrenberg, Cornelia and Mittel, Oliver},
  keyword      = {Business model,business ecosystem,resource based view,marketing paradigm,demand side perspective,market entry.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Strategy for Entering a New Business Segment: How a high-tech company can leverage and adapt its business model and ecosystem in a new market.},
  year         = {2017},
}