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Exploiting Opportunities of New Market Spaces in e-Business

  • Tawfik JelassiEmail author
  • Francisco J. Martínez-López
Chapter
  • 121 Downloads
Part of the Classroom Companion: Business book series (CCB)

Abstract

This chapter indicated that digitalization largely disrupts borders between sectors and analyzed how firms can break away from traditional forms of competition and redefine their value proposition by opening up new market spaces. This can be done first by gaining insights into new market spaces through the value curve. This chapter also discussed timing issues for market entry in e-business. More specifically, it analyzed the different types of early-mover advantages and disadvantages that an Internet venture can exploit (or should avoid).

Keywords

Electronic business Early-mover advantage Value innovation Value creation 

References

  1. Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2003). Economics of Strategy (pp. 438–446). John Wiley.Google Scholar
  2. Henderson, B. (1998). The experience curve reviewed. In C. Stern & G. Stalk (Eds.), (pp. 12–15). Perspectives on strategy: John Wiley.Google Scholar
  3. Johnson, G., Scholes, K., & Whittington, R. (2002). Exploring corporate strategy (7th ed., pp. 132–133). New Jersey: Prentice Hall.Google Scholar
  4. Kim, W. C., & Mauborgne, R. (1997). Value innovation: The strategic logic of high growth. Harvard Business Review, 75, 102–112.Google Scholar
  5. Kim, C., & Mauborgne, R. (1999). Creating new market space. Harvard Business Review, 77, 83–93.Google Scholar
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Further Reading

  1. V. Atluri, M. Dietz, and N. Henke, ‘Competing in a world of sectors without borders’, Mckinsey Quarterly, July 2017.Google Scholar
  2. Building on their insights from the value innovation studies, C. Kim and R. Mauborgne published the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, Harvard Business School Press, Expanded edition, 2015.Google Scholar
  3. C. Kim and R. Mauborgne developed the concept of creating new market spaces by looking outside one’s own industry in ‘Creating new market space’, Harvard Business Review, 1999, January–February, pp. 83–93. See also: ‘Value innovation – the strategic logic of high growth’, Harvard Business Review, 1997, January–February, pp. 103–112. And: C. Kim and R. Mauborgne, ‘Nondisruptive Creation: Rethinking Innovation and Growth’, MIT Sloan Management Review, 21 February 2019.Google Scholar
  4. R. Varadarajan et al.’ analyze the first-mover advantage in the digital market space in ‘First-mover advantage in an Internet-enabled market environment: conceptual framework and propositions’, Journal of the Academy of Marketing Science, 2008, 36, pp. 293–328; also, see the chapter by R. Varadarajan et al. published in F.J. Martínez-López (Ed.) Research Handbook on e-business Strategic Management, Series PROGRESS in IS, Springer, 2013.Google Scholar

Weblinks

  1. www.blueoceanstrategy.com revolves completely around value innovations and provides up-to-date examples of successful innovations and their underlying drivers.
  2. www.innovationzen.com provides information on innovation management, business strategy, technology and more.

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Tawfik Jelassi
    • 1
    Email author
  • Francisco J. Martínez-López
    • 2
  1. 1.IMDLausanneSwitzerland
  2. 2.Department of Business Administration 1University of GranadaGranadaSpain

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