Abstract

Odds of success drop to as low as 10 percent when companies try to develop new products significantly beyond their core, i.e. where there are changes in the business model required such as a new supply chain or a new customer (Edwards, 2012:34). Nevertheless, as Apple’s exponential growth rates since 2005 exemplify, the results of successful outside-the-core projects (e.g., iPhone) can be disproportional. This research looks at paired case studies of successful and unsuccessful outside-the-core project in large companies. Our research question is: Which factors determine success or failure when companies venture into outside-the-core businesses for which a new business model is required?

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