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The Incumbent Revenge: A Blue Ocean Failure

In: Entrepreneurial Connectivity

Author

Listed:
  • Véronique Ambrosini

    (Monash University)

  • Taman Powell

    (University of Roehampton)

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.

Suggested Citation

  • Véronique Ambrosini & Taman Powell, 2021. "The Incumbent Revenge: A Blue Ocean Failure," Springer Books, in: Vanessa Ratten (ed.), Entrepreneurial Connectivity, chapter 0, pages 135-144, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-5572-2_9
    DOI: 10.1007/978-981-16-5572-2_9
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